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The main difference between "refurbished" and "used"[1] products is that refurbished products have been tested and verified to function properly, and are thus free of defects, while "used" products may or may not be defective. Refurbished products may be unused customer returns that are essentially "new" items, or they may be defective products that were returned under warranty, and resold by the manufacturer after repairing the defects and ensuring proper function.[2]

Other types of products that may be sold as "refurbished" include:

Items used in field tests, sales displays or demonstrations[2]

Items returned for reasons other than defect, and tested by the manufacturer[2]

Items returned to the manufacturer because the box or item was damaged in shipping[2]

Used items that have been donated to a charity or non-profit organization[3]

Leftover equipment sold by a downsized company to a 3rd party refurbisher[4]

However, the following types of products are considered recycled, not refurbished:

Previously leased units that are returned and resold after the lease ends[5]

Used electronics that have been returned to an electronic recycling program[3]