Generally “seller refurbished” means that the people who are selling them did the refurbishing rather than Kwikset or an authorized service place. However, the site does say this:
Seller Refurbished – But Your Satisfaction is Guaranteed
The locks at this price are seller refurbished, which means each one has not been used but may have scratches/blemishes and be repackaged. Every lock is tested for full functionality and is guaranteed to work. What does that mean? If you aren’t completely satisfied, return your lock within 30 days for a prompt and courteous refund.
Sounds like these may have been display models. You do get a 30 days warranty so that should be enough to make sure the mechanics as well as the electronics work properly. My only concern would be that the lock is not visually screwed up. If there are big scratches or marks on it, it might be a problem with looks. Maybe ask them for an actual picture of the unit they are selling you?
FWIW, I got a used one of eBay a number of months back for a little less, but over all that’s a pretty good price. My used one has worked fantastically well for me.