Understanding Seller-Refurbished Products

Seller-refurbished products are products that have been refurbished by a third-party seller instead of the manufacturer. A savvy shopper can find incredible deals on seller-refurbished products offered by Amazon and eBay, among others, but there are a few things you should know to make sure the price is right.

If you haven’t already read my more general post on how and why to buy refurbished products, you may want to start there before reading this post. 

Let’s jump right in with an example!

Buying Last Year’s iPhone

At the time of writing, the iPhone XS was Apple’s flagship model last year. Their current flagship model is the iPhone 11 Pro. Because the iPhone XS is a year old, it’s available as a refurbished device and still for sale in new condition as well. Here are some current prices for the iPhone XS in a 64GB, Fully Unlocked, Space Gray configuration:

• A New iPhone XS sells for $899
• 
An Apple Certified Refurbished iPhone XS sells for $699 (22% off)

• A seller-refurbished iPhone XS sells for $470 on Amazon Renewed (48% off)


Why is the seller-refurbished option so much cheaper? The answer is what you’re getting isn’t quite the same as the manufacturer-refurbished option. The details are right on the product page:

Unpacking the offer

The notes on Amazon’s product page are fairly typical for a seller-refurbished product, and it’s great that Amazon is so transparent in their disclosure here. My summary of the key points is:

1. The refurbishment was done by “Amazon-qualified suppliers” and not by Apple

2. The box and charging cable may be generic parts, and you won’t get the headphones you usually get with a new iPhone

3. Battery health is guaranteed to be at least 80% (vs. a new battery for the Apple Certified option)

4. The warranty and return policy comes in the form of a 90-day satisfaction guarantee offered by Amazon (vs. a 1-year manufacturer warranty for the Apple Certified option)


So, is that worth saving $220, or does that scare you off?

Personally, I’d take the money. Here’s my view on each of those points:

First, third-party technicians can generally be counted on to have the training and experience to repair phones properly, in much the same way that an independent mechanic can be a reasonable choice for getting your car repaired. Amazon notes that the phone has been tested, cleaned, and has no blaring cosmetic imperfections… it “works and looks like new”.

Second, I couldn’t care less whether the charging cable or box was generic (especially the box, which is going straight in the recycling bin anyway). The missing headphones will be a non-issue to most people as well. If you don’t already have headphones you’re happy with, get exactly what you want in a separate purchase.

Third, good battery life is important, but I don’t think it’s a hill to die on. 80% capacity (at a minimum) feels acceptable. I probably won’t notice, but if the battery did get to a point where it needs replacement, that’s only a $69 service through Apple. And if instead of the iPhone we were looking at a phone with a user-replaceable battery, I’d expect that cost to be even lower. We’re coming out way ahead.

Finally, for the warranty, 90 days is plenty of time to make sure I didn’t receive a lemon. If I’m happy after three months, I’m not particularly worried it’s suddenly going to fail. And as I mentioned in Part 1, your credit card’s Extended Warranty Protection may give you a boost in this situation.

So for me, these trade-offs are no big deal, and I’m happy to save the additional $220 over the Apple Certified option. Also, another way to look at the situation is saving that extra money now might justify making my next upgrade a little sooner.

Make sure you’re getting a good deal

I hope the above discussion illustrates that there are trade-offs when buying a seller-refurbished product instead of a manufacturer-refurbished product, but they are often quite acceptable. However, it’s important to take the time to thoroughly understand what’s included, what the condition is, and what the warranty/support policy is.

Be aware that seller-refurbishers will differ in what they offer. One seller might offer a 30-day warranty and another might offer a full year. One might include more accessories than another. And one might have a better reputation than another.

Also, make sure the price is right. Theoretically, prices should look like this: 

New ($$$)
Manufacturer-refurbished ($$)
Seller-refurbished ($)

That’s clearly how it played out in the iPhone XS example, but it’s not always the case. For example, at the time of writing, a refurbished Bose Soundlink Mini II Bluetooth speaker is cheaper when bought directly from Bose ($160) than from Amazon Renewed ($179). So, if you’re thinking about buying a seller-refurbished product, make sure you compare the price against the manufacturer-refurbished and new alternatives.

Just like normal products, refurbished products can go on sale, or, on the other hand, be out of stock. If you see a killer deal, don’t wait to buy. On the other hand, if the price is not compelling, waiting may yield a better deal.

Where to find seller-refurbished products

I’ve leaned heavily on Amazon Renewed in my examples for this article. Amazon Renewed is part of a larger program Amazon offers to buy used products at great prices. But they are far from the only place to find seller-refurbished products.

Another major source, especially for phone and computer equipment, is eBay. I bought a refurbished MacBook Pro from a seller-refurbisher and have had four trouble-free years with it so far. I’ve mentioned this to people in casual conversation and gotten incredulous responses, so let me be clear: When I’m talking about eBay, I’m not talking about a casual seller trying to unload their personal computer. I’m talking about IT clearinghouses. I’m talking about sellers with thousands of sales and a 97%+ positive feedback rating (remember, reputation is important). I’m looking for lots of disclosures and information about the product condition (including battery), what’s included, and what kind of warranty and return policy is being offered. eBay also offers a buyer protection policy that may apply to your purchase if the product is not working as advertised.

Numerous other companies offer seller-refurbished products. I’m not going to call out any others by name because many of them are in niche markets. As I said in Part 1, the easiest strategy is to just Google ‘refurbished <product name>’ and see what comes up. You can also run the same search on Amazon and eBay to browse those options.

Note that some retailers may offer both manufacturer-refurbished and seller-refurbished products, so look carefully at the offer to determine which it is.

Bottom line

Seller-refurbished products can offer excellent value. In some cases, it even opens up a refurbished option on products that would otherwise only be available new. I hope this guide will help you understand what to look for and what questions to ask to make sure you’re getting a great deal.

Have you had a clever fox moment getting a great deal on a refurbished product? I want to hear about it!