Blog
amazon-warehouse
April 28, 2023
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9
min read
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Written by: 
Nikolaus Hilgenfeldt
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Category:
Ecommerce Trends

Amazon Warehouse - What It Is & Why You Should Use It?

Have you ever felt confused about different sections of Amazon, their features, and requirements?

With Amazon Warehouse, shoppers can find products at steep discounts because they may not meet the company's exacting quality requirements. 

Meanwhile, Amazon is an excellent place for businesses to unload surplus stock and recoup some losses.

But just like any other online marketplace, this one also has pros and cons that vendors and customers should know. 

This article will explore Amazon Warehouse in depth, serving as a guide for sellers and buyers interested in learning more about this lucrative marketplace.

Let's dive in right now!

What Is Amazon Warehouse?

The term "Amazon Warehouse" with a capitalized "W" refers to the Amazon website section that provides significant markdowns on preowned, used, and open-box products.

If an item bought on Amazon is returned, refurbished, or damaged in the warehouse, it can no longer be sold as "new." 

As a result, Amazon moves these items to the Amazon Warehouse deals page, where customers can find them at a discounted price.   

You can find different used items such as smartphones, laptops, tablets, home and kitchen appliances, and thousands more, with all the benefits of Amazon fulfillment, customer support, and return rights.

Furthermore, Amazon meticulously tests the quality of each used product it offers and provides detailed descriptions to help shoppers decide.

How Do Amazon Warehouse Deals Work?

When customers return an item to Amazon, they inspect it to determine if it is in good enough condition to resell.

The items are checked to ensure they are functional and up to Amazon's standards. However, they may have visual flaws or damaged packaging. 

The product's history and condition are always listed, giving buyers complete transparency. 

how-amazon-warehouse-deals-works

Depending on that, Warehouse Deals discounts can be anywhere from 10% to 50% off the original price.

What Kind of Products Are Available on Amazon Warehouse Deals?

Amazon Warehouse Deals offers a wide variety of products, including electronics, home and kitchen products, books, toys, and more. 

The selection is constantly changing as Amazon adds new products and sells others.

amazon-shop-by-category

Amazon Warehouse is similar to Amazon.com in every way except that it sells only slightly used, refurbished, and open-box items of high quality.

differences-from-regular-amazon-shop

The product's condition is clearly stated in the product listing and detailed description of any damage or missing parts.

amazon-renewed-refurbished-products

Additionally, Amazon uses a grading system to provide more information about the product.  

The grades range from:

  • Used - Like New
grade-range-used-like-new
  • Used - Very Good
grade-range-used-very-good
  • Used - Good

  • Used - Acceptable
grade-range-used-acceptable
  • Renewed
grade-range-renewed

According to the grading system, "Like New" is the best condition, and "Acceptable" is the worst.

How to Choose the Best Amazon Warehouse Deal?

When you look at every Amazon Warehouse sale for a specific product, you'll see a wide range of pricing, with the cheapest option (including delivery costs) displayed first.

Even though finding the best price is probably a priority, you should also examine the state of each item.

It's likely that the cheaper the price, the more flawed or damaged the product is.

how-to-choose-the-best-amazon-warehouse-deal-example

In most cases, Amazon Warehouse prices are lower than those of brand-new products listed on Amazon.com, even after applying discounts.

But you'll have to shell out extra cash for a product that's in mint condition.

Remember that products featured on Amazon Warehouse Deals are only available on a first-come, first-served basis. 

And, since Amazon has limited control over what consumers return and (to a lesser extent) what gets damaged in its warehouses, this is an expected situation.

How to Find the Best Deal on Amazon Warehouse

You can shop the Amazon Warehouse selection by

  • Going to the main page of Amazon's Warehouse or
  • Visiting Amazon.com and then choosing Amazon Warehouse from the drop-down option.

The remainder of the procedure is identical to any other Amazon marketplace purchase.

Here's how to determine the condition of a product on Amazon Warehouse Deals:

  • Look for the condition in the product listing.
  • Pay attention to the condition grade.
  • Read the product description carefully.
  • Look at the product images.
  • Look for coupons to save even more.

What to Expect When Receiving the Product?

Here's what to expect when receiving a product from Amazon Warehouse Deals:

1. Shipping 

As with regular Amazon purchases, Amazon ships and fulfills orders for Amazon Warehouse Deals products. 

You can expect to receive your product within the same timeframe as a standard Amazon purchase, depending on the shipping speed you selected during checkout.

amazon-warehouse-shipping

2. Product’s Condition

When you receive your product, it's important to inspect it carefully before using it.

Check the product's condition against the product listing and description to ensure it matches..

amazon-warehouse-product’s-condition

Suppose there are any discrepancies or issues with the product. 

In that case, you should contact Amazon customer service immediately to initiate a return or exchange

Returns and Refunds on Amazon Warehouse Deals

Another important thing, whatever you are buying, is to understand returns and refunds for Amazon Warehouse Deals products:

1. Return Policy – If unsatisfied with your purchase, you can return the product within 30 days of receiving it for a full refund.

2. To initiate a return, go to your Amazon account's "Returns & Orders" section and select the product you want to return. Follow the prompts to generate a return label and return the product to Amazon.

3. Refund process – Once Amazon receives your returned product, they'll inspect it to ensure it's in the same condition as when they sold it. If everything checks out, they'll issue a full refund to your original payment method within 3-5 business days.

You can expect a full refund for the price you paid for the product, including any taxes or shipping costs. 

However, if the product is not in the same condition as when it was sold, you may receive a partial or no refund.

Additionally, if you paid for expedited shipping, you will not receive a refund for those additional shipping costs.

How Do Amazon Warehouse Deals Work for Sellers?

Amazon Warehouse Deals works differently for sellers than it does for buyers. 

Sellers using Amazon Seller Central cannot sell products through Amazon Warehouse Deals. Instead, Amazon handles warehouse product inventory by identifying damaged, returned, or refurbished and placing them under the Amazon umbrella.

Here's how it works for sellers:

1. The selling process

 Sellers can use Amazon Warehouse Deals to sell their returned products. 

To sell on Amazon Warehouse Deals, sellers must meet specific criteria, such as having a professional selling account and maintaining high-performance standards.

2. Condition requirements

Sellers must adhere to Amazon's condition requirements when listing their products on Amazon Warehouse Deals. 

The condition requirements are the same as for regular Amazon products, and sellers must accurately describe the condition of their products in their listings.

3. Pricing

Amazon determines the selling price of the products based on various factors, including the original retail price, the condition of the product, and the demand for the product

In addition, Amazon typically offers sellers a discounted rate on their commission fees for Amazon Warehouse Deals sales.

4. Shipping and fulfillment

Sellers are responsible for shipping their products to Amazon's warehouses, which are inspected and processed for resale. 

Amazon handles the fulfillment and shipping of the products to buyers, just like regular Amazon purchases.

5. Returns

Amazon Warehouse Deals sellers must adhere to the same return policies as regular Amazon sellers. 

Buyers can return the products within 30 days of purchase for a full refund, and sellers are responsible for handling the returns and issuing refunds.

Under this policy, Amazon only compensates sellers for lost or damaged products due to a mistake by Amazon. 

Amazon does not cover the production costs if there's a manufacturing error.

Sellers can receive compensation for returns in two ways: 

  • You will receive the replacement value for lost or damaged products
  • Amazon will replace your products with a new one of the same FNSKU.

To determine the replacement value, Amazon considers factors such as the seller's sales history, the average selling price of the product through FBA, and the sales history of the specific ASIN.

If this information is unavailable, compensation is determined on the default replacement policy. In addition, Amazon may request the product's purchasing receipt or invoice for items costing less than $5,000.

For items over $5,000, sellers can be reimbursed through insurance for lost or damaged products.

Does Amazon’s Warehouse Deals Benefit Sellers?

Amazon Warehouse Deals can benefit sellers in a few ways.

📌  Firstly, sellers who send their products to Amazon's fulfillment centers (FBA) can potentially have their items listed on Amazon Warehouse Deals if they become eligible for the program. 

It can lead to increased exposure for your products and potentially more sales.

📌 Secondly, if you have products that you want to sell through warehouse deals, you can receive compensation through Amazon's Lost & Damaged policy if your products are lost or damaged while under Amazon's control.

It can help alleviate the costs and risks associated with damaged or lost inventory.

📌 Lastly, by participating in Amazon Warehouse Deals, you can potentially free up space in your inventory by selling off overstocked or slow-moving products. 

It can increase cash flow and allow you to focus on selling more profitable items.

Pro Tip From Myos

The inability to get capital and adapt to changing market conditions is a persistent problem for Amazon sellers.

Product launches, marketing campaigns, transportation and shipping costs, and inventory expansions can all necessitate extra funding.

However, expanding in these areas will increase shoppers, boost your online store's revenue, and propel your business to the next level. 

Myos asset-based finance can give you access to the working capital you need to expand your business without draining your savings or causing a halt in the cash flow of your business.

You can choose between two funding options:

1. Purchase financing – With inventory financing, we will handle the deposit and balance payment for your upcoming orders with the manufacturer.

2. Stock financing uses your existing inventory as collateral to fund store growth. Use the extra cash and put it toward any expansion strategy you want, such as marketing or new product launches.

What Are the Benefits of Amazon Warehouse Deals?

There are several benefits to using Amazon Warehouse Deals:

✔️ Since the products sold through Amazon Warehouse Deals have been returned or used, they are often sold at a lower price than new products.

✔️ By selling returned and used products, Amazon can reduce waste and promote sustainability.

✔️ Amazon Warehouse Deals offers a wide selection of products, including electronics, home and kitchen products, books, and more.

✔️ Customers can return items for a full refund within 30 days of purchase if they are dissatisfied with their purchase under Amazon's standard return policy, which applies to products sold through Amazon Warehouse Deals.

✔️ Products sold through Amazon Warehouse Deals often have customer reviews, which can help customers make informed decisions about their purchases.

How Amazon Warehouse Deals Affect Amazon Sellers?

Regarding Amazon Warehouse Deals, sellers often wonder how these deals impact their business. 

In addition to the common inquiry about returning used items to Amazon, there are other significant questions to consider. 

Below are some of the key ways in which Amazon Warehouse Deals can affect sellers.

Pros

✅ Amazon reimburses sellers for products that become warehouse deals.

✅ Since Amazon takes ownership of the product, it will handle any necessary repackaging, saving sellers time and money.

✅ Additionally, Amazon will cover the delivery and shipment costs, which can be a significant seller expense.

Cons

❌When brand owners sell their products through Amazon Warehouse Deals, they risk losing control of the customer experience, which can lead to negative reviews. 

❌ Shoppers may buy similar items on Amazon Warehouse at a lower price, which could affect the seller's revenue. 

❌ Offering products at low prices through Amazon Warehouse Deals may damage the brand's value in the long run.

Conclusion

Amazon Warehouse Deals provides an attractive option for both buyers and sellers. 

If you are an Amazon seller who wants to minimize losses and avoid inventory removal costs, Amazon Warehouse Deals could be a good option.

That being said, you should weigh the pros and cons mentioned above. 

Examining how warehouse deals on Amazon may impact your brand, particularly the long-term effects on your Amazon business, is essential.

There are a few things you can do to prevent it:

  • Opt out of the default setting that permits Amazon to repackage returned items and replenish them for sale to prevent Amazon from disposing of unfillable items via Amazon Warehouse Deals.
  • Before sending products to Amazon facilities, thoroughly examine and wrap them to prevent damage and loss

With 89% of online shoppers preferring Amazon over other websites, it is reasonable to say that investing your time and money in the growth of your business on this platform is the way to go.

So, if you need an additional financial boost, take a look at the benefits of asset-based financing by Myos:

  • No credit checks. Myos only uses open data about your store, such as the number of items sold and their prices, to predict the future performance of your products.
  • No personal guarantees, just a portion of your existing or future inventory through an agreement with your warehouse as collateral.
  • Flexible repayment terms of up to 24 months, tailored to your needs.
  • There are no fixed fees or minimum terms.
  • Always available customer support.

So, sign up with Myos today and let your Amazon business bloom!

FAQ

Can I Trust the Condition of Amazon Warehouse Products? 

Amazon provides detailed information about the condition of each product in the product listing. Also, Amazon offers a 30-day money-back guarantee. If unsatisfied with the product, you can return it for a full refund.

How Does Amazon Warehouse Pricing Work?

Amazon Warehouse pricing is based on the product's condition, with discounts offered for products that have been returned or have cosmetic damage. You can set your product price as a seller, but Amazon may adjust the price based on market demand and other factors.

What Kind of Support Does Amazon Provide to Sellers on Amazon Warehouse? 

Amazon provides a range of support services to sellers on Amazon Warehouse, including seller support, fulfillment services, and advertising tools to help promote your products.

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