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Amazon Warehouse Deals Guide

Did you know that customers on Amazon can get awesome deals on products that work like new? That’s right, customers can pay deep discounts on items that have been returned by previous customers. Whether they are brand new or slightly damaged, Amazon Warehouse Deals is where its at. 

Do Amazon sellers have to sell items through Amazon Warehouse deals? We’ll answer that question soon. But if you want to keep ahead of the curb when it comes to your inventory, a program like IO Scout will be helpful to you. 

This way, you can be able to know whether or not your items will be received or if they are being returned on Amazon. You will have a personal assistant that will keep you in the know of any status changes. Now, let’s dig into what Amazon Warehouse Deals are and how they work. 

What are Amazon Warehouse Deals?

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Amazon Warehouse Deals is a part of Amazon where customers can receive discounts on used items. Some of these items may have been previously damaged and have since been fixed or refurbished. Keep in mind that these items do not meet the standards set by Amazon that indicate a “new” product. 

However, Amazon Warehouse Deals does offer products that are considered in “new” condition but have been unboxed. Also, these items may be returns from previous Amazon purchases. One of the things you need to understand is that items that you sell on Amazon won’t always get returned to you directly. 

Thus, these products will be placed on sale again, this time as an item that’s part of the Amazon Warehouse Deals. However, they should be in good enough condition before they are even listed as such. As mentioned before, they will not be sold as a “new” product again. 

Amazon has also focused on selling items that have been previously used or damaged. At the same time, they are unable to predict whether or not such items will be available ever again. As an Amazon store owner, you’ll understand that the inventory will change constantly. 

However, you can stay ahead of the curve with these inventory changes with IO Scout. Since it’s a powerful program that helps the Amazon business owner, you’ll be aware of any inventory changes (if available). You’ll know what is sold, returned, and what may be running low. From there, you can be able to make a decision on ordering a new batch of items or just let them sell out and discontinue them. 

Are Amazon Warehouse Deals Owned by Amazon?

The short answer: Of course. After all, it is a part of what Amazon does. It is up to Amazon to make decisions on what can be considered sold as part of these “warehouse deals”. 

Among some of the decisions they make, they can determine if the item in question is sold as a “good condition” item or a “damaged item”. Regardless, it will be sold at a price. The only difference is, how much of a discount will it be sold for.

How Do Amazon Warehouse Deals Work?

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The way it works is this: let’s say an item that is sold on Amazon is returned for some reason. Amazon Warehouse Deals will re-sell these items “like-new” or depending on the condition that it is in. Keep in mind that these items may never be sold as it was initially as a “new” product. 

These items will be sold at deeper discount prices and not their original price. The condition may determine the price of the item. A like-new item may be sold more than an item that has been used after a short-term period (up to 6 months). 

Items returned to Amazon will undergo a rigorous 20 point inspection. This will determine the quality of the product and will also give them a classification of what condition the item will be sold in. From there, they’ll set a discounted price and it will sit there until it is bought by a customer. 

These purchases can also be Prime-eligible (at the discretion of Amazon). The items will also be eligible for Amazon’s 30-day return policy. If a customer is an Amazon Prime member, they can order the product and get fast shipping just as if the item itself is brand new. 

Listing Conditions For Amazon Warehouse Deals

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Most of the time, the products that are listed on Amazon will mention the listed condition. This is the case if your customers are purchasing a used product. The condition will be listed above the “Add To Cart” button. 

If there are multiple used products, you can select the best option. However, the condition may not be the same. One item might be in better condition than the other. 

Since Amazon does a thorough inspection of these items, they can choose to add one of the following conditions once the inspection has passed and their explanation as to why they have been given that determination:

Renewed

The product undergoes inspection and is in like new quality and works as if it came out of the box for the first time. These products are barely used or never have been used at all (but have been unboxed). Any products that include additional accessories must also be re-packaged. 

The products will have what is known as the “Amazon Renewed Guaranteed”. The way the guarantee works is that the buyer is offered a refund within a 90 day period if the product does not work as it’s supposed to. 

Used -- Like new

The “Like New” classification is given to items that are in excellent condition. The packaging condition may not meet Amazon’s standards of being considered “new”. If the packaging is slightly damaged or defected, the item can be classified as “like new”. 

Used -- Very good

The item that is classified as “very good” may have minimal cosmetic damage (including blemishes). The item must show some signs of usage. Also, minor accessories can be missing as well. For example, a battery operated product that has a cover for the battery compartment can go missing and can be considered a “very good” item. 

Used -- Good

A “good” item will have slightly more cosmetic damage compared to items that are considered “very good”. Some missing accessories that are considered essential may be considered an acceptable criteria for “good”. Although they might not be sold on Amazon, let’s use a drum set as an example. 

Let’s say that one of the cymbals is missing from the drumset (stand included). This may constitute a major accessory that is missing from the setup. At this point, you can purchase it separately on Amazon or elsewhere. As for the rest of the drumset, it can be considered “good” despite the signs of use and the non-presence of a major accessory that makes the item functional. 

Used -- Acceptable

Items that have dents, scratches, or other aesthetic issues will have the “acceptable” label. If the item is still usable, you can still be able to sell it under this classification. The packaging can be replaced if there is enough sustained damage to it. Third-party attachments, instruction manuals, and the like can be missing from the item itself. 

What Does Open Box Mean?

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The term “Open Box” is pretty self explanatory. It means that the item has been opened from its original packaging. Of course, the item can also be returned since it hasn’t been used. 

Odds are, the product itself might not even be damaged at all (let alone used regularly). However, a small percentage of returns on Amazon or any other eCommerce store for that matter have been due to defects. Other returns may have been due to other factors like the wrong size, wrong color, and so on. 

There is also a good chance that an open box item may be returned due to the fact that the customer changed their mind and didn’t need the product anyway. As such, the item will be the closest thing to brand new and the next buyer can score an excellent deal. If there is one thing that a customer would want nothing more, it’s getting a brand spanking new item that has never been used (but unboxed) and getting it for one heck of a deal. 

That’s the beauty of these “open box” items. Often, Amazon will sell items in this type of condition at a price that might be affordable for one shopper. However, this may not always be the case with most items. 

Some stores will allow you to return an item after just two weeks (or more depending on the policy). Most open box items may also be “floor models” from a store. Yes, while on display, they are the same product even if they are not boxed like the others. 

There are some additional considerations that you need to be aware of when it comes to “Open Box” items: 

  • Return policy: Most of (if not all) the open box items were returned at some point or another. Because of this, there could be a different return policy than normal. Before an item is purchased, it is the customer’s responsibility to find a product that gives them a return policy that is best suited
  • Cost to return: Like the return policy, it may come at a cost. These are also known as “restocking fees”. Pay close attention to this part of the return policy if you plan on purchasing an open box item
  • Warranty: This is where things can get really tricky. Warranties may be void depending on the conditions that may have been met. However, with returned items, the manufacturing warranties may still remain intact. This is one more thing that you need to look for prior to purchase
  • Origin (or Location): The origin or location of the item will play a role in whether or not it was a return or a floor model. The more you know about a product’s origin, the better you’ll be able to determine if the product was previously returned or just displayed at the store
  • Damage: One of the downsides of purchasing something in an online store is whether or not the item could be damaged. As mentioned, items coming from the Amazon Warehouse Deals side may have some kind of damage present. But leave it to the listing conditions to give you a good indication. Only the Amazon inspectors will give you an accurate assessment of the item depending on the damage
  • Accessories: Brand new, never been opened products will come with the accessories and an instruction manual. Open box items may not include them. The good news is that nine times out of ten, these missing instruction manuals don’t mean the end of the world. If you can track down a digital copy of the same manual online, you should be in good shape. Likewise, finding additional accessories that have gone missing can be purchased online
  • Worth: Open box items may be worth something. Or maybe not despite getting a nice discount. If the item in question is worth something to the customer, then they can buy it even if the price is less than usual. 

Purchasing Open Box Items

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Think Amazon is the only place where you can buy “Open Box” items? Well, there are other brand name retailers that do the same thing. Although Amazon is the best of the bunch, there are other alternative stores such as the following:

  • Best Buy
  • eBay
  • NewEgg

There are plenty of differences between Amazon on the retailers listed above. However, Amazon wins out in the end because of their rigorous inspection process and their ability to accurately determine the condition of an open box product. On top of that, you get a 30-day return policy in the event if the item doesn’t work or if you decide to change your mind (and that can happen with items that have been returned before). 

What Sellers Should Know About Amazon Warehouse Deals?

If you are an Amazon seller, it’s important to know about Amazon Warehouse Deals and how they work. These are some of the things that sellers must be aware of:

Sellers Can’t Sell Items On Amazon Warehouse Deals.

While sellers can list their items as brand new, they can’t sell items that are eligible to be sold as Amazon Warehouse Deals. In the final analysis, it might be better for the seller in the long run.  

For one, it would not be fair for the Amazon seller for having to sell an item at such a discounted price. Plus, it would be Amazon themselves that gets the sales. That’s OK considering the fact that brand new items are the best option for sellers since they get to sell them at the best possible price.

Risks of Buying Via Amazon Warehouse Deals

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While Amazon Warehouse Deals is indeed legitimate, there are some risks that come for buyers. The success rate as of today is on an average of 78% percent. This is largely in part due to the amount of positive reviews that customers have given regarding their products. 

However, the reviews will depend on the product that is being sold. While most of the reviews have been positive, some products may have more negative reviews. Keep this in mind when looking through what items are available.

One of the things you need to be aware of are entities claiming to be third-party sellers of Amazon. One such example is Warehouse Deals Inc. This is a company claiming to be associated with Amazon that has since been proven as a scam.

If you are in doubt as to who is affiliated with Amazon and who isn’t, it’s important to do your due diligence. Also, you can contact Amazon to get confirmation. At this time, there are no known third-party sellers that are linked with Amazon. 

So be aware of any scams related to Amazon when looking for Warehouse Deals. Since Amazon controls that part of the site and not a variety of sellers, the likelihood of you being scammed on the site are non-existent. 

Are Amazon Warehouse Deals Owned By Amazon? 

Yes. Amazon Warehouse Deals are owned and controlled by Amazon. This means they can only sell items that were previously purchased on the site but have been returned for some reason. The items themselves will not be returned to the specific seller. 

Amazon Warehouse Deals Return Policy 

Amazon Warehouse Deals has a policy that is outlined as follows:

  • Any item shipped from the Amazon Warehouse can be returned 30 days after shipment. However, this may depend on the products being sold and any additional policies that may be attached along with it
  • Items that are considered “Open Box” or used products can be returned within that same 30 day time period. Again, the same requirements and additional policies will also apply (if necessary)
  • Products that are certified refurbished can be returned within 90 days of the shipping date

Amazon Warehouse Deals Shipping Policy

Items that are sold as Amazon Warehouse Deals can be eligible for two-day shipping, Prime shipping, or Free Super Saving Shipping. However, this will depend on the offer. Items sold through Amazon Warehouse Deals are domestic only (United States; no international shipping). 

If the item is returned by the customer and Amazon is at fault for any errors, the latter will pay the return shipping cost. 

FBA Lost and Damaged Inventory Reimbursement Policy

This policy comes into place in the event if inventory that is lost or damage occurs and the occurrence happens under Amazon’s control. These damages can occur during the delivery process or while the item in question is at the fulfillment center.  Should anything happen under Amazon’s control, the policy is outlined as follows:

  • Amazon will pay the seller the replacement value of the item that was lost or damaged
  • Replaces the product outright along with the same SKU number

The replacement value that Amazon pays to the seller may depend on some factors. They include but are not limited to:

  • The sales history of the seller
  • Average selling price 
  • The sales history of a specific ASIN

If there is no information found, Amazon will use the default replacement value. The seller can request a reevaluation if they have an invoice or receipt on file. Otherwise, the default value will be the final amount. 

Please note that the replacement value will have a maximum of $5000. If the item is above the maximum price, Amazon will highly recommend that you purchase insurance in the event of any incidents that may happen prior to an item being shipped. 

To give you a better understanding of what the policy covers, here’s a list of incidents that are covered (assuming they occur on Amazon’s watch):

  • The item incurs damage while at an Amazon fulfillment center
  • The item is lost while at an Amazon fulfillment center (including items that go missing within 30 consecutive days)
  • Items are lost or damaged by a mail carrier or distributor of the product used to deliver to customers
  • Items that are shipped to an Amazon fulfillment center and is damaged while en route

Note: Any small items that are shipped using carriers partnered by Amazon may not be covered under this policy if the packaging is inadequate. This specifically applies to when you are shipping items to an Amazon fulfillment center near you. 

FAQ

The following are some frequently asked questions regarding Amazon Warehouse Deals. These questions will give you a better understanding of what it does. Here are the following questions:

Is working at an Amazon warehouse hard?

It is hard work according to those who have worked in Amazon warehouses for lengthy periods of time. Contrary to what people have said in the past about them, they are better than other warehouses some employees have worked in the past. One major complaint is that the room temperature can get a little too hot at times.

Are Amazon Warehouse Deals good?

It depends on the customer. Ideally, a customer can find a good deal on an item that they are looking for. Some won’t mind some issues like a missing instruction manual or minor accessories. But other customers may be so picky that warehouse deals may not be worth it to them. 

Are Amazon Warehouse returns free?

Not always. Some items may depend on restocking fees, which will come at the expense of the customer. 

What does Amazon do with the returns?

It will depend on some factors. If the returns are not damaged, they can be inspected and resold as warehouse deals. However, an item that is returned may be badly damaged to the point where it will need to be returned to the seller themselves. 

Final Thoughts

While warehouse deals may not be open to Amazon sellers, it’s important to keep track of any inventory that might have been returned to Amazon. Thankfully, IO Scout will be able to keep you in the know of any items that are shipped, received, and yes even returned to you.

At a low monthly payment, you get access to plenty of tools that will help you keep your Amazon business up and running. Every nook and cranny that can be automated can be run through IO Scout so you can focus on the priorities. 

With an automated assistant available 24 hours a day, seven days a week you can be able to check on package statuses, inventory, and so much more. Did we mention that you can get it at a monthly low price?

That’s right, you can get it for $14 a month (billed annually) or $29 a month (billed monthly). It’s the only Amazon business related software that has a personal assistant and is jam-packed with plenty of powerful tools that you can easily use.