Amazon is making significant changes to its refurbished devices program, known as Renewed, by halting the sale of externally refurbished products. This strategic shift means that only items returned to Amazon and refurbished by their certified professionals will be available for purchase. This move aims to enhance the quality of offerings and address the growing concerns over product returns and rejections.

Amazon’s Shift to In-House Refurbishment

The e-commerce giant has communicated this update to its sellers, emphasizing that the decision stems from the challenges posed by high return rates. A company spokesperson stated, “In our ongoing quest to refine our selection of refurbished items, we’ve opted to stop selling products that have been refurbished externally.”

• All returned products will now undergo a thorough inspection and refurbishment process by Amazon’s own experts before being listed on the Renewed platform.
• This change aims to ensure that customers receive high-quality devices that meet Amazon’s standards.

Trends in the Refurbished Device Market

Recent analysis indicates that the refurbished devices market, particularly for mobile phones, is consolidating. Established players are gaining market share while smaller entrants are struggling to survive. Data from Tracxn reveals a concerning trend: the introduction of new companies in this sector has decreased significantly, dropping from four new companies annually in 2020 and 2021 to just one in 2024. This decline is mirrored globally, where the number of new players fell from ten in 2021 to only four in 2023, and again to one in 2024.

The Dominance of Mobile Phones

Analysts note that the refurbished device market is heavily reliant on smartphones, with a staggering over 50% of sales attributed to iPhones. This trend underscores a clear consumer preference that continues to shape the market dynamics. For other categories like laptops and hard drives, many customers now lean towards purchasing brand-new items, particularly as EMI options become more prevalent.

• The competition is set to intensify in the mobile sector, especially as the demand for 5G devices may adversely affect the sales of 4G and older models.

The Evolution of Renewed

Launched in 2017, Amazon’s Renewed program was designed to offer high-quality refurbished electronic devices, including laptops, hard disks, PCs, and smartphones. Initially, these products were certified by either in-house technicians or third-party refurbishers to ensure they functioned like new.

As Amazon pivots its strategy, it will be interesting to observe how these changes impact the refurbished devices landscape and consumer behavior in the coming years.