When you are shopping for consumer electronics or computer related products, chances are you’ve seen products labeled as refurbished, remanufactured or reconditioned.

All three terms mean the same thing, and they refer to the product being returned in less than 30 days, sent back to the manufacturer to be inspected, tested, repackaged, and then resold.

Most refurbished products have been sold, lightly used or not even used at all, and then returned. “Once an item is opened, it can’t legally be sold as a new product. Often returns are sent back to the manufacturer to be refurbished. But sometimes a merchant’s contract with the manufacturer doesn’t allow returns or only allow so many. In that case the merchandise may go to a company known as a refurb house which cleans the items, checks them out and packs them in new boxes with manuals and accessories.

If you’ve ever returned a product at a big box electronics store within the 30 day return policy, the returned product will most likely go through this process and resold as refurbished.

Rest assured refurbished products are not defective and are tested to be in perfect working condition. Best yet, refurbished products sell for anywhere between 20% – 60% off the normal retail price of the product.

With the refurbished products a $50-$60 billion dollar industry, refurbished products are a legitimate saving money option that many people consider. Even giving somebody a refurbished product isn’t considered taboo. If you think about it, the receiver is receiving more bang for the buck!