Refurbished Goods - What it means ??????????

Refurbished Goods

When it comes to Refurbished goods, there is a general notion that these are ‘Second-Hand’ items. To put things in perspective, such goods are partially used but are returned to the seller with minimal wear and tear to be repaired and restored and sold as certified refurbished products.

Most of the time, such products are returned based on minor flaws involving functionality, packaging or aesthetics of the product. The manufacturer’s role is critical in the process as they are responsible for correcting the flaw, rechecking for functionality and other quality parameters to transform the product to as good as new. The demand for refurbished products is growing due to participation from online retailers like Amazon and Flipkart.

Avenues to buy Refurbished Goods

Refurbished products offer a great option for customers who seek branded products at an affordable price. Instead of buying second-hand products, customers can opt for refurbished products that come with product warranty and in near-mint condition. In India, the refurbishing business is growing at a robust pace with more demand coming from the tier-2 and tier-3 towns. Cities with a floating population consisting of students and young professionals are the ones majorly going in for refurbished products considering the inexpensive pricing.

Now, let’s briefly look at websites that offer refurbished goods:

• Amazon India: The site carries a large range of refurbished or ‘Renewed’ (as they call it) products including factory seconds and all types of electronics. All products come with an assured warranty.

• 2Gud.com: This is an independent platform owned by Flipkart. It offers good deals on refurbished phones, smartphones, laptops, smartwatches and streaming devices.

• eBay: The site has been closely associated with refurbished products for long and offers a diverse variety of goods under one roof. Products come with a Buyer Protection Policy to ensure good quality. All concerns reported are looked into by eBay.

• Quikr: They mainly cater to pre-owned and unboxed products but carry the refurbished tag. Products sold on the site go through rigorous quality checks to ensure the proper working condition and come with a replacement guarantee.

• ShopClues: The site was a major player in online retailing but now sells pre-owned, unboxed and refurbished electronic products. The major downside on site is a lack of a diverse product catalogue to entice a customer.

Benefits of Refurbished Products

• Price Factor: One of the best features is definitely the price. There are occasions when some products are offered at a 50% discount, which makes them irresistible.

• Assured Testing: Before being put in the market, these are tested by the seller by involving the manufacturer for faulty parts and performance before it is sold to the customer in usable condition.

• Availability of older models: Some of us who are averse to new models and upgrades can find older refurbished models that fulfil our requirements. Most brands tend to discontinue old models or limit their supply.

• Eco-Friendly: One can indirectly do their bit for the environment by prolonging the life of a gadget, which otherwise would be disassembled and dumped into landfills.

RIsk factors associated with Refurbished Products

• Reduced Warranty: When buying refurbished models, there is a reduced period of warranty compared to buying a fresh unit.

• Lifespan not Defined: We can be assured of a new Smartphone lasting a year or two. But, refurbished products do not come with a defined lifespan.

• Parts & Accessories: A new product has brand new parts and accessories, but no assurance on the authenticity exists for refurbished products.

Flipkart versus Amazon in the Refurbished Space

The process of refurbishing is not a new phenomenon, as it was fairly common among offline retailers, especially with electronic goods. Now, major players in online retail have become active in the refurbished product space.

Flipkart's 2gud.com

• The site was launched in 2018 with focus on Smartphones, tablets and electronic accessories. Presently, their product catalogue includes apparel and footwear.

• Prices vary from 50-80% of the original price depending on the level of certification and offer a purchase warranty of 3-12 months with the option to return.

• Flipkart refurbishes the product through trusted partners and third-party vendors.

• The companies seek to exploit the demand by putting in place systems and processes to improve transparency and quality.

Amazon’s Renewed Products

• The site started with refurbished products in 2017 and offered products under 20 different categories.

• The products are sold through third-party suppliers, and the company insists on good-quality and performance, which is an outcome of an elaborate refurbishing process validated by Amazon.

• All products come with a 6-months seller’s warranty and are in-line with Amazon’s return policies.

• The downside on the site is a comparatively higher price range on refurbished goods.

How Can Online Retail Sites be trusted with Refurbished Products

• Company Reputation: Major online shopping sites are putting their reputation at stake by selling refurbished goods. Sites are compelled to sell only high-quality goods through mechanisms that monitor & reject low quality or sub-standard products.

• Return Policies: All products on these sites are backed by an easy return policy, making it easy for customers to try refurbished products in the first place.

• Warranty on Products: Refurbished products come with a product warranty that promises a minimum working period. All products come with this warranty.

Final Thoughts

Although refurbished products make high-end brands affordable, there isn't any guarantee on the long-term viability of the product and sites tend to affirm this. That said, we are living in an aspirational India that is price sensitive yet brand conscious, and refurbished products open up a whole new world of possibilities.