Published February 16, 2026 · Updated February 16, 2026 · 6 min read

Managing FBA Returns: To Refurbish or Liquidate?

Returns are a normal part of FBA, but default disposal destroys recoverable value. A structured removal workflow helps you decide when to relist, downgrade condition, or liquidate with better margin control.

1) The Grading Process

Returned items are often marked customer-damaged even when the product is still sellable. A grading checklist should verify:

  • Seal integrity
  • Functional condition
  • Accessory completeness

2) When to Refurbish

If only packaging is damaged but the item itself is clean and functional, re-boxing or re-bagging can restore sellability and recover margin that would otherwise be lost.

3) Selling as "Used - Like New"

Units with minor cosmetic packaging issues can often be relisted under Used - Like New if functional and complete. This is especially useful for higher-ticket items where recovery value is meaningful.

4) When to Liquidate

If repair/reprep cost exceeds recoverable resale value, liquidation or disposal is typically the better operational choice.

Scenario Action
Box torn, item perfect Re-prep and relist as New
Minor wear, fully functional Relist as Used - Like New
Broken or hygiene-sensitive damage Disposal or recycling

Stop destroying potential profit

Route removal orders to Stratosphere Prep for inspection, grading, and relisting support so more inventory gets back on shelf.

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FAQ

How much does removal inspection cost?

Inspection pricing is usually higher than standard prep because of manual labor, often in the $1.50-$3.00 per unit range depending on complexity.