Will Amazon Push into Refurbs Impact eBay?

Where do you go if you're looking for refurbished goods? Many people might start by searching eBay or even Facebook Marketplace, but Amazon wants people to think of its site, announcing on Wednesday a "Second Chance Store" in the UK to draw attention to its offerings.

The Second Chance Store by Amazon is operating in partnership with a leading UK children's charity called Barnardo's. Amazon donated over 4,000 products to be featured in store, "including quality used, open-box and refurbished donated products from Amazon." (It promoted its own Echo, Kindle and Ring Doorbell devices in the announcement.) All proceeds will support Barnardo's work with children and young people, and the store is open through December 12, 2023.

Amazon said second-hand shopping on its marketplace was a billion-pound business across the UK and Europe. (Reuters called that the equivalent of $1.3 billion.) 

Amazon's press release stated that in the first nine months of 2023, its sales of second-hand goods in the UK increased by more than 15% compared to the same period last year.

"In the UK alone, Amazon gave a second chance to more than four million products last year, helping British customers save more than £30 million by buying used or refurbished products at a discount," it stated. 

The move by Amazon to promote refurbished goods in the UK could have an impact on eBay, which launched a "Better Than New Homeware" hub in the UK in April. eBay called the hub a "curated destination designed to help shoppers consider pre-loved first when updating their interiors by choosing vintage, refurbished or repaired pieces that are better for both the planet and easier on wallets too."

eBay also launched a Certified by Brand program in April in the US: "Certified pre-owned refers to pre-owned inventory that is provided, verified and certified by the brands or their authorized sellers. All pre-owned inventory part of the Certified by Brand program is certified pre-owned." However, eBay has also has tightened the rules around selling refurbished goods on its platform, as we reported last year.

Walmart launched a program called Walmart Restored last year offering like-new refurbished goods, and its Walmart Restored Premium offers "like-new refurbished items, inspected, tested, and cleaned by either the Manufacturer(s), a Manufacturer-Authorized or Other Qualifying Seller or Supplier."

At one time eBay owned the used and refurbished market for ecommerce, but consumers have many more options from which to choose. And importantly, so do sellers, though the brand-certified designation found on major marketplaces could divert sales away from small sellers.

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