Amazon warehouse deals sells returns, but they do sell genuine used merchandise too; For example they buy back video games, ipods, etc and sell them through the warehouse deals brand. They might also get used merchandise through other channels such as reviewers, etc - don't know. I do know that the merchandise sometimes arrives in marked up or clearly opened boxes, but it generally works. Of probably 30-40 items I have ordered from Warehouse deals, one was the totally wrong item entirely (smoke detector). The other items worked fine, some looked brand new/sealed box, others were obviously opened but still worked. Not speaking of low $ items either - purchased a $500 Tamron 17-50mm IS, Couple of hard drives, HD home run. And in any case you deal with Amazon customer service so you won't have any real issues with items that don't work or are wrong. (although buyer's remorse type deals might be treated differently)