Maybe I'm way off, but I was always under the impression that those returned items are re-packaged (if necessary) and sold as new.
And I think that's fine since I really don't see any other way to handle it. Think about europe, where every shop has to offer a free 14 day return policy, regardless of if you're Amazon or a small Shopify seller.
If the item can't be sold as new, that means the customer overstepped and should be held accountable.
For example, go into any Best Buy and ask them where the open box deals are, or look on their website.
Or go to a Fry's Electronics store. They put returned items on the shelf with new ones, but there is a special label on the package noting this and generally offering a small discount.
Lenovo has a factory outlet separate from their main website where they sell customer returns. Unopened returns may be listed as new; opened returns are listed as used or refurbished.
Amazon lists returned products under "Amazon Warehouse Deals" in the New and Used section of a product listing, with the product condition noted in the description.
For most product categories, Amazon prohibits a returned item from being resold as "New":
https://www.amazon.com/gp/help/customer/display.html?nodeId=...
> New: Just like it sounds. A brand-new, unused, unopened item in its original packaging, with all original packaging materials included. Original protective wrapping, if any, is intact. Original manufacturer's warranty, if any, still applies, with warranty details included in the listing comments.
There are some different policies in certain product categories; the page above lists them.
Of course, third-party sellers on Amazon may well re-sell customer returns as "new". But if they don't comply with the rules on this page, they are violating their seller agreement.
In those three cases.... * I returned the incorrect product in exchange for the item I'd actually ordered, and was charged a restocking fee despite it being Newegg's error. * I returned the damaged motherboard in exchange for an undamaged one, and was charged a restocking fee despite it being Newegg's error. * I contacted support about the slower-than-paid-for shipping, and was told, effectively "it'll get there eventually; no refund on shipping speed."
Those three experiences burned me on Newegg entirely. I'll pay the extra $10-20 to get the product somewhere else with less headache, especially since the restocking fees mean I come out close to break-even on price.
