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Amazon Warehouse Deals: What Sellers Need to Know

Amazon Basics / August 6, 2019

What are Amazon Warehouse Deals?

For people looking to save money and don’t mind buying used products, Amazon Warehouse Deals offer a great opportunity to purchase products that have been returned, damaged in the warehouse, are used, or refurbished at a discounted price. These deep discounts come from the need to clear out these products that cannot be sold on Amazon.com as “new” because they fall short of meeting the stringent requirements to be sold as new products.

Amazon Warehouse Deals can also be new products or products in open-box condition. All products still go through a 20-point inspection quality inspection performed by Amazon. Purchases through Amazon Warehouse Deals are Prime-eligible and qualify for the standard Amazon 30 day return policy.

Here are a couple examples of how products become Amazon Warehouse Deals:

  • Product is damaged while in Amazon’s control. Amazon reimburses the seller who tells Amazon they can dispose of the item. Amazon inspects the damage item and if it meets the standards, it will be sold in Amazon Warehouse Deals at a deep discount.
  • Customer returns an item to Amazon. Seller tells Amazon to dispose of the item. Amazon decides based on inspection whether to resell the item.

Product Listing Conditions for Amazon Warehouse Deals

Amazon Warehouse Deals are listed based on their condition type:

  • Used – Like New
    • “Like new” condition products that are in perfect condition, but may have less-than-perfect packaging conditions that prevent it from being listed as new.
  • Used – Very Good
    • Product may have cosmetic damages like blemishes or signs of use, is missing minor accessories, or packaging has been replaced in order to protect the item.
  • Used – Good
    • Product has signs of large cosmetic damage and/or missing accessories, and/or packaging may have been replaced in order to protect the item.
  • Used – Acceptable
    • Product shows damages like scratches, dents, or other aesthetic problems, and/or packaging may have been replaced in order to protect the item.

What Do Sellers Need to Know About Amazon Warehouse Deals?

As an Amazon Seller, what you need to know about how Amazon Warehouse Deals works is mostly in regards to how you will be reimbursed for products. Sellers will only be reimbursed for products when they are lost or damaged while in Amazon’s control. It is also important to note that Amazon Warehouse Deals are not eligible to compete for the Buy Box.

So, what happens if your product is lost or damaged while in Amazon’s control?

In the event your products are lost or damaged when in Amazon’s control (i.e. damaged while in transit by Amazon partnered carrier while being delivered to the customer, in the fulfillment center, etc.), Amazon will either:

  • Replace the product with one of the same FNSKU
  • Pay the seller for the replacement value of the lost inventory (minus any applicable fees for selling on Amazon or using FBA)

Replacement value is evaluated by Amazon considering several factors including sales history, average FBA selling price, and sales history of the specific ASIN. If they are unable to make a determination based on this information, then they defer to the default replacement value based on the category and similar products. If this ends up being the case, Amazon may request an invoice or a receipt in order to help establish a reasonable replacement value. Replacement value will not exceed $5,000 for any item.

If you are selling products that are more than $5,000 each, Amazon recommends considering buying insurance from a third-party.

Some brands feel uneasy about their products ending up part of Amazon Warehouse Deals because they lose the ability to control the customer experience. For example, if a customer purchases a product from a brand from Amazon Warehouse Deals and ends up being unhappy about the quality of the product, they could potentially air their frustrations on social media and put the brand in a bad light. It can also lead to bad reviews on the product listing, which can be detrimental to the overall rating for the product listing.

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