Amazon returns don’t always follow a straightforward path, and one of the more nuanced cases is Grade & Resell. When a returned item is graded as used and later sold again under a separate SKU, it introduces complexity in cost and profit calculations that many analytics tools struggle to handle correctly.
Understanding this workflow – and accounting for it properly – is essential for accurate profit reporting.
The accounting challenge with Grade & Resell
When a product is sold on Amazon and later returned in a used condition, Amazon may inspect it and assign it a Grade & Resell SKU. While the item can be sold again, its cost behavior is fundamentally different from a new unit:
- COGS is deducted when the original (new) SKU is sold
- The returned item does not return to sellable inventory, so its cost is not added back
- If the graded item is sold and COGS is deducted again, the same physical unit is counted twice
This leads to distorted profit figures and artificially low margins if not handled correctly.
Accurate profit analytics depend on recognizing that the cost of this unit has already been fully accounted for during the initial sale.
How sellerboard approaches this correctly
sellerboard is built to reflect this real-world Amazon workflow:
- Grade & Resell SKUs are automatically detected
- The original SKU’s COGS is shown for transparency and reference
- That COGS is excluded from profit calculations when the graded item is sold
- Profit is calculated without duplicating costs for the same unit
This ensures that profit analytics remain consistent and aligned with how Amazon actually processes returns and resales.
A note on COGS visibility
- COGS shown for Grade & Resell SKUs is informational only
- Any manual COGS entered for these SKUs is also treated as informational and does not affect profit calculations
- No setup or configuration is required – the logic applies automatically
Working more easily with Grade & Resell products
For sellers who actively track Grade & Resell inventory, sellerboard also provides a simple way to focus on these products during analysis and planning.
On the Products and Inventory Planner pages, products can be filtered by condition:
- New
- New + Grade and Resell
This makes it easier to analyze inventory, plan replenishment, and understand the role Grade & Resell SKUs play in overall performance – without compromising profit accuracy.
