Every online seller knows the pain of customer returns. Perfectly good products come back, get stored, and slowly turn into a loss. Amazon found a smarter way to deal with that problem with its FBA Grade and Resell program a simple idea that helps sellers turn returned items into money again.
Instead of letting returns pile up in warehouses, Amazon now inspects and resells them, giving every item another chance to find a buyer.
What is FBA Grade and Resell
Grade and Resell is a service for sellers who use Fulfillment by Amazon. When customers return an item, Amazon doesn’t just toss it aside. It checks the product carefully and gives it a grade based on its condition. The item can be marked as Like New, Very Good, Good, or Acceptable.
Once graded, Amazon relists the product for sale on the marketplace with a clear description of its condition and packaging. That means buyers know exactly what they are getting, and sellers recover value that would otherwise be lost.
How the Program Works
Here’s what happens behind the scenes.
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The seller enrolls once in the Grade and Resell program.
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When a return arrives at the fulfillment center, Amazon inspects and tests it.
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If the product passes the check, it is automatically relisted for sale under the seller’s account.
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Once the used item sells, the seller receives payment after Amazon deducts a small processing fee.
It’s a completely hands-off system. You don’t have to ship the product back to yourself or handle it manually. Amazon manages everything from grading to relisting.
Why Sellers Love It
Many FBA sellers are already seeing results. One brand, JB Tools, reportedly recovered more than half a million dollars by reselling returned power tools through this program.
For others, it’s about peace of mind. Instead of paying for storage or removal, sellers can earn money back from products that were once considered unsellable.
As Michelle Kartchner, CEO of Ascendant Brands, said, “Most of our returns were sitting in the warehouse and costing us money. The Grade and Resell program turned that into an easy source of extra revenue.”
A Win for Sustainability
The program doesn’t just help sellers. It’s also great for the environment. Each item that gets resold means less waste and fewer products ending up in landfills. Customers get access to affordable, quality goods while sellers reduce their environmental footprint.
For brands that care about sustainability, this small change can make a big impact.
Things to Keep in Mind
The Grade and Resell service is a smart tool, but it’s not for every product. Some items aren’t eligible, like incomplete products or those in restricted categories. Amazon also charges a small fee for grading and handling, usually between one and two dollars depending on the size and weight.
Sellers should also keep an eye on product reviews and performance. Even used products affect the overall listing, so quality control remains important
How to Get the Most Out of It
To make the most of Grade and Resell, sellers should:
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Start with higher-value or durable items that still have good resale demand
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Adjust pricing wisely so used items stay competitive while remaining profitable
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Monitor feedback to understand how used products perform
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Use return data to identify common issues and improve product quality
These small steps can turn the program into a consistent source of extra revenue.
Returns used to mean loss and frustration, but Amazon’s Grade and Resell program changes that story. It gives every item a second life, helps sellers earn back money, and supports sustainability at the same time.
For anyone selling through FBA, this isn’t just a new feature it’s a smarter way to run a business.
