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What is Refurbished Merchandise?
Consumer merchandise is returned to a store, or the manufacturer, for a variety of reasons, many of which are not related to an item working properly. When a consumer electronic product is returned, it is shipped to the original manufacturer, or a third party refurbisher, where it is inspected thoroughly, restored to original specification, tested and repackaged for resale. Such items are sold as "refurbished". Refurbished merchandise is also commonly called "factory serviced" or "remanufactured".

What are examples of how products may come to be refurbished?
Most retail stores offer return privileges. Consumers will take advantage of that offer and return their purchases, sometimes for no reason. These items are subsequently returned to the manufacturer, inspected and repackaged like new. Merchandise cartons may be damaged in transit. The products are returned to the manufacturer for inspection, testing and repackaging. Products may be discovered to have some sort of some defect or blemish. The part is replaced by the manufacturer, tested and then repackaged to new standards. Demonstration units may also become factory refurbished. These units are inspected, tested and repackaged. Brand new items which have never have even made it to a store shelf, such as overstocks discontinued, can also be labeled "refurbished".