Amazon’s Secret Tool to Turn Returns into Profit (FBA Grade & Resell Explained!)

Returns are one of the most frustrating parts of selling online. As an Amazon seller, you work hard to drive traffic, make sales, and optimize your listings—only for customers to send items back. But here’s the good news: returns aren’t the end. With Amazon’s FBA Grade & Resell program, you can actually turn those returns into profit instead of letting them eat away at your bottom line.

In this guide, I’ll explain how the program works, how to set it up, and why every serious seller should consider enabling it.

Video Overview:

What is Amazon’s FBA Grade & Resell Program?

The FBA Grade & Resell program allows sellers to recover value from eligible customer returns. Instead of shipping returned inventory back to you—or worse, destroying it—Amazon inspects the items and relists them as:

Like New
Very Good
Good
Acceptable

You’ve probably seen listings on Amazon that say “Used – Very Good” or “Used – Like New” (example here). Many of those are from Grade & Resell.

For sellers, this is a win-win: you recover lost value, reduce disposal costs, and keep inventory moving.

How It Works (Step-by-Step)

Here’s exactly how to enable FBA Grade & Resell inside Seller Central:

Log in to Amazon Seller Central.
Go to the top right corner → Settings → Fulfillment by Amazon.
Scroll to Automated unfulfillable settings and click Edit.
Enable Grade & Resell.
Set your discount tiers (Amazon lets you choose pricing for each grade):
- Like New = ~10% discount
- Very Good = ~20% discount
- Good = ~30% discount
- Acceptable = ~40% discount

Once enabled, Amazon automatically inspects returns, assigns a grade, and resells the item on your behalf.

Why This Matters for Amazon Sellers

The reality is that returns are unavoidable. Customers change their minds, sizing is wrong, or packaging gets opened. For example, imagine a customer orders tennis balls, opens the seal, and then decides they don’t want them. Normally, you’d eat the cost. But with Grade & Resell, Amazon can relist those balls as “Like New” and still generate a sale.

This is how smart Amazon sellers make money on Amazon even when things don’t go as planned.

Need help reducing your return rate? At EHP Consulting Group, we provide free listing audits to identify why products are being returned and how to improve conversion.

Who Should Use FBA Grade & Resell?

This tool is perfect for:

High-volume Amazon sellers dealing with frequent returns.
Brands in categories with packaging-sensitive items (toys, sporting goods, small electronics).
Sellers who want more cash flow instead of piling up unfulfillable inventory.
Anyone tired of manually handling return logistics.

If you’re new to the program or just unsure how to set it up, a Florida Amazon Consultant can walk you through the process step-by-step.

Final Thoughts: Don’t Let Returns Kill Your Profits

Returns aren’t going away, but they don’t have to destroy your margins. With Amazon’s Grade & Resell program, you can:

✅ Recover lost value
✅ Automate the resale process
✅ Keep customers happy with discounted options
✅ Focus on growing instead of managing returns

If you want to make more money on Amazon, reduce return headaches, and scale smarter, our team at EHP Consulting Group can help. Whether you need an Amazon ads expert, account management, or counterfeit removal on Amazon, we’ve got you covered.

Don’t let returns sit in a warehouse collecting dust—turn them into profit today.

Written By: Joshua Hackett

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