system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: The process of repacking goods for resale after they are returned.

Many times, items themselves will be returned in like new condition for a full refund but their packaging is more or less destroyed (e.g. plastic film/bags torn open, styrofoam broken, etc.), or certainly not in good enough condition to be sold as new. What happens to these items and who eats the cost of repackaging them? I can't imagine it makes sense to ship the item all the way back to its factory in a different country for repackaging. Are there specialty firms that handle repackaging things to a manufacturer's spec? Do retailers do it? Are there laws about disclosing that the item is returned?
gpt
a lot of them are sold as refurbished or scratch and dents or customer returns.  a lot of them are also sold as oem without original packaging.

basically in the usa, if any item has their original packaging opened, then it no longer qualifies as new and must be sold as refurbished/used even if new packaging is used.

it depends on the store, but some stores like fry's just puts them back on the shelf as a customer return while others puts them on pallets and sells them at auction or in bulk to someone who then tries to flip them on ebay or sell it as used/refurbished.

for food items, if it's non perishable items like canned or boxed or sealed packaging items that don't require refrigeration and isn't expired, they can be put back on the shelf.  but perishable items, they are always discarded.