Overview

Amazon has introduced a new “Grade and Resell” option for FBA sellers, letting unfulfillable returns be inspected, graded, and listed as used items instead of being removed or destroyed. The service is currently free and can return as much as 80 % of the original selling price, giving sellers a way to recoup value from returns that would otherwise be a loss. Sellers should care because returns typically eat 5 %‑15 % of revenue, and this program offers a higher‑margin alternative.

Key Points

• Recovery potential — Graded items can fetch up to 80 % of the new‑item price, with “like‑new” grades typically achieving the highest percentages.
• Return rate pressure — Most categories see return rates between 5 % and 15 %, turning inventory that would be written off into a possible revenue stream.
• No current fees — Amazon does not charge any program‑specific fees during the introductory phase, though a 60‑day notice will precede any future pricing changes.
• Geographic rollout — The feature is live in the United Kingdom and several other Amazon marketplaces, with plans to expand to additional regions over the coming months.
• Seller control — Participants set their own prices for each condition tier, allowing alignment with margin targets and competitive pricing strategies.
• Potential fee introduction — Amazon has pledged a 60‑day advance notice before any charges are applied, allowing sellers to plan for possible cost adjustments while they gather performance data.

How Grade and Resell Works

1. Return classification — When a customer sends back a product that Amazon marks as unfulfillable as new, the item is automatically routed to the grading queue. For example, a returned Bluetooth speaker that fails a functional test will be set aside for inspection.
2. Condition grading — Fulfillment‑center staff examine the item and assign a grade ranging from “Like New” down to “Acceptable.” A lightly scratched phone case might receive a “Very Good” rating, while a dented toaster could be labeled “Acceptable.”