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:
Does not go back into your inventory.
Is 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 returned to 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 prevents double-counting inventory, all sales on this item will be pure profit with no cost.
What Cost Should You Enter?
If you don't track inventory in ConnectStock, You should enter a $0 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:
Any revenue from a Grade & Resell sale should be treated as full profit.
Entering a cost again would double-count your expense.
This method ensures your accounting stays accurate and prevents duplicate costs.