According to Amazon Seller Central. You have an Amazon Liquidations options:
When you submit a liquidation order, Amazon will attempt to arrange a liquidator for this inventory. If arranged, a wholesale liquidator will purchase this inventory for a gross recovery value, which is about 5% to 10% of its average selling price ASP. Once this inventory ships to a liquidator—approximately 30 days after submitting the liquidation order—you can review the gross recovery value. Once Amazon receives payment from a liquidator—approximately 60 days after submitting the liquidation order—the net recovery value will be available on your Payments page.**
That’s right, you will recover 5%-10% of it’s average selling price! And, get paid months later. Add one more reason Amazon treats small business owner poortly.
Here’s another option if you are on Shopify. Returns For Sale App.
Take that Amazon return in house.
List it using Returns For Sale Shopify app right on your Shopify store. People will see that return available right on the new product page for purchase at a discount with exact details of what to expect.
Instead of 10% - 15% of your of your sell price, you might sell it for only 10%-15% OFF your sell price.
Own the customer.
Sell them more items.
Keep them on your email list for future marketing.
Own the process.
In the end, you might even make more than even selling it as new on Amazon.
**Source: https://sellercentral.amazon.com/help/hub/reference/GYVCG5Q3BEJ6MLMF
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