If you’re an Amazon FBA seller, dealing with unfulfillable inventory can be frustrating. But what if there was a way to recover value from returns and unsellable items? That’s exactly what Amazon’s FBA Grade and Resell program offers—a smart way to relist certain items as “Used” and generate revenue instead of taking a total loss.
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What is Amazon FBA grade and resell?
Amazon’s FBA Grade and Resell allows sellers to send unfulfillable inventory for assessment, where items are assigned a used condition grade and relisted under your seller account. This means you can recover some of your investment instead of disposing of or liquidating the product at a lower price.
The grading process is crucial, as Amazon determines the resale value based on condition and functionality. The four possible grades include:
- Used – Like New: The item is in perfect condition with minimal signs of wear.
- Used – Very Good: Slight cosmetic imperfections but fully functional.
- Used – Good: Noticeable signs of wear but still operational.
- Used – Acceptable: Significant wear but functional.
If an item is deemed unsellable, it remains in your unfulfillable inventory, and no fees are charged.
How to participate in fba grade and resell
Getting started with the program is simple:
- Submit unfulfillable inventory through your Seller Central dashboard.
- Amazon grades each item and assigns a used condition category.
- Relist items automatically under your seller account.
- Monitor pricing and sales to optimize performance.
Pro Tip: Set competitive pricing to move inventory quickly and avoid unnecessary storage fees.
Understanding fees and financial impact
A major advantage of the FBA Grade and Resell program is that Amazon has waived processing fees until late 2024. This means you don’t have to pay additional costs to have your inventory graded and relisted.
However, standard referral and FBA fulfillment fees still apply, so be sure to track these costs in your Payments Dashboard or Transaction Reports. If you notice discrepancies, you can request a fee adjustment.
Managing inventory and preventing stranded listings
Once an item is relisted, it receives a unique SKU, which means you’ll need to manage it separately from your new inventory. You can adjust pricing manually or through Automated Unfulfillable Settings to ensure quick sales.
To prevent stranded inventory:
✅ Regularly check reports and adjust pricing as needed.
✅ Set up automated price rules for faster clearance.
✅ Monitor sales performance and make data-driven adjustments.
💡 Tip: If an item isn’t selling, consider running limited-time discounts or bundling it with similar products.
Product eligibility and restrictions
Not all items qualify for the program. Amazon enforces restrictions to ensure only resellable products are listed. Ineligible products include:
🚫 Hazardous materials (hazmat)
🚫 Oversized or extremely heavy items
🚫 Products priced under $15
🚫 Expired food or consumables
Additionally, only customer-returned items stored in specific fulfillment centers are eligible.
Inside Amazon’s grading process
When Amazon assesses a product, it evaluates:
🔍 Functionality (does the item work as intended?)
🔍 Packaging damage (damaged vs. original packaging)
🔍 Cosmetic condition (scratches, dents, packaging quality)
For electronics, Amazon takes extra steps such as:
🖥️ Memory wiping
🔄 Factory resets
Important: Some devices, like laptops or cameras, might still contain personal data. Advise buyers to reset their devices manually to protect privacy.
Common seller challenges and solutions
While the FBA Grade and Resell program is a great way to recover lost revenue, sellers may encounter a few challenges:
🚧 Risk of stranded inventory – If a relisted item doesn’t sell, it could become stranded. Solution: Regularly monitor your inventory and adjust pricing as needed.
🚧 Longer sales cycle – Since used products typically sell at a lower velocity, expect longer turnaround times. Solution: Use competitive pricing and consider running promotions.
🚧 Storage fees for unsellable items – If an item is deemed completely unfulfillable, you may need to remove or dispose of it. Solution: Review reports to prevent excessive storage costs.
🚧 Processing delays during peak seasons – Grading times may increase during Q4 and Prime Day. Solution: Plan and submit unfulfillable inventory early.
Final thoughts: maximize profitability with FBA grade and resell
The FBA Grade and Resell program is a game-changer for sellers looking to recover value from customer returns and unfulfillable inventory. Instead of losing money on disposed products, you can relist them in a used condition and generate additional revenue. By leveraging this program, sellers can reduce losses, optimize inventory management, and increase overall profitability on Amazon FBA.
