What happens with Grade & Resell?
When an item is returned and Amazon marks it as unsellable, it is treated as a loss. The original product:
Doesn't go back into your inventory.
Was already counted as an expense when it was first sold.
Later, Amazon may list that returned item as a Grade & Resell unit and sell it again.
Since the original cost was already expensed and the item never went back into inventory, the resale should be treated differently.
How to map Grade & Resell items
If you track inventory in ConnectStock or QuickBooks, we recommend mapping all Grade & Resell sales to a new non inventory item called "Grade & Resell".
This keeps your records clean and stops inventory from being counted twice. There is no product cost on these sales. Amazon fees still apply.
If you use ConnectStock:
Create a new item called "Grade & Resell" with the type Non Inventory. See How to Add Items in ConnectStock.
Map each Grade & Resell SKU to this item. See How to map listings to ConnectBooks items.
If you track inventory in QuickBooks, go to Listings, open the QuickBooks Mappings tab, and map the SKU to a non inventory item in QuickBooks.
What cost should you enter?
If you don't track inventory in ConnectStock: On the Product Cost tab in Listings, enter $0 as the Item Cost for the Grade & Resell SKU.
Why?
Because:
The original product cost was already recorded when the item was first sold.
The returned item was marked unsellable and counted as a loss.
It never went back into inventory.
Amazon is simply reselling the returned unit.
That means there is no product cost on these sales. Amazon fees still apply.
Entering a cost again would count your expense twice. This method keeps your accounting accurate and prevents duplicate costs.
Frequently asked questions
Do Amazon fees still apply to Grade & Resell sales?
Yes. Only the product cost is left out.
Why not use the original item's cost?
That cost was already recorded when the item was first sold. Using it again would count your expense twice.
I don't track inventory in ConnectStock. What cost do I enter?
On the Product Cost tab in Listings, enter $0 as the Item Cost for the Grade & Resell SKU.