Amazon’s FBA Grade and Resell Program: Turning Returns into Revenue Amid Tariff Uncertainty

Customer returns don’t have to mean revenue loss. With Amazon’s FBA Grade and Resell program, your returned inventory gets a second chance—and when paired with Seller Labs tools, you can make every relist count.

Watch Amazon’s official explainer video →

What Is FBA Grade and Resell?

Amazon’s FBA Grade and Resell program allows sellers to recover value from customer returns that are still in usable condition. When an item is returned, it’s inspected, graded (Like New, Very Good, Good, Acceptable), and if eligible, relisted—with you as the seller of record.

You control pricing.
Amazon handles relisting and grading.
Customers get transparency—and you get a second chance at profit.

Why It Matters Now: Navigating Tariff Volatility

As of May 2025, the U.S. and China have agreed to a 90-day pause on escalating trade restrictions, reducing tariffs from as high as 145% down to 10% in some cases. However, a 20% tariff still remains in place for many goods, and the future remains uncertain.

For Amazon sellers, this means:

• Imported goods are still expensive, especially when replenishing stock
• Every return is a bigger loss if not resold
• Future tariff hikes may return, making inventory recovery even more critical

Grade and Resell helps mitigate sourcing risk by turning returns into revenue—without needing to reorder, repack, or re-import inventory.

Tap Into the Secondhand Economy

Amazon shoppers are embracing sustainability and affordability. Over 100 million customers have chosen sustainable product alternatives, and secondhand shopping is growing fast.

With FBA Grade and Resell, you:

• Recover profits from inventory that once went to liquidation
• Offer used listings with full transparency and trust
• Reach value-driven shoppers without undercutting your new listings

Secondhand SKUs don’t cannibalize sales—they expand your catalog and customer reach.

The Numbers: Fees, Eligibility & Setup

Processing Fees (Only when items are successfully relisted)

Item Type	Fee
Small Standard-Size (≤16 oz)	Fee	$1.50
Large Standard-Size (≤21 lb)	Fee	$1.80
Small/Medium Oversize (≤151 lb)	Fee	$2.65
Large/Special Oversize (>151 lb)	Fee	$4.10

There’s no fee if the item is unsellable.

Who Can Enroll?

• FBA sellers in the U.S., UK, France, Germany, Italy, and Spain
• Products must meet Amazon’s guidelines (hazmat and consumables excluded)

To enroll, adjust your Automated Unfulfillable Settings in Seller Central.

See step-by-step setup instructions from Amazon Seller Central

How Seller Labs Helps You Maximize the Program

FBA Grade and Resell works best when paired with the right insights. Here’s how Seller Labs tools support your strategy:

Analyze SKU Profitability with Precision

• Use SKU Economics and SKU Details to evaluate margins
• Factor in Grade and Resell fees to assess recovery value
• Spot return-heavy SKUs and pricing gaps

Plan Smarter with the Restock App

• Forecast demand with return trends in mind
• Reduce unnecessary restocks
• Prioritize replenishment based on potential resale performance

Manage Ads and Reach Value-Driven Buyers

• Monitor resale SKUs separately to track ROI
• Pause ads manually on underperforming resale SKUs
• Promote used listings to appeal to price-conscious customers

Final Thoughts: A Smart Play for 2025

If you’re managing:

• Tight margins due to tariffs
• Rising return volumes
• Growing FBA fees and sourcing costs

…then Grade and Resell should be part of your profitability playbook.

It’s not just a sustainability win—it’s a revenue recovery engine that works smarter when paired with Seller Labs tools.

Ready to Turn Returns into Revenue?

Seller Labs gives you the clarity to make every return count. With our SKU Economics, SKU Details, and Restock apps, you can:

Track profitability across all SKUs
Identify high-return items worth relisting
Minimize losses from customer returns
Make smarter, data-backed restock decisions

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