Unfulfillable Inventory - how to handle on Amazon

Every Amazon seller with meaningful volume eventually faces the unfulfillable inventory question. A customer returns a product, Amazon opens the package, it's no longer sellable as new, and now it's sitting in their warehouse costing you storage fees. What do you do? Amazon gives you several options, and the wrong choice can cost you more than the product is worth... The 3 automated recovery options are refurbishment, grade and resell, and liquidation. Refurbishment is only worth considering...