Earlier quoted context omitted.
ALL retailers destroy unsellable inventory. Items can be defective, counterfeit, damaged, under legal injunction like a trade dispute, incorrectly licensed, or just plain unwanted. If you trade in any item anywhere eventually you're going to end up with something in stock you can't sell. I mean, what do we want to happen? These things to sit idle forever in a warehouse taking up space?
Give them away for free. we should incentivize under-production, not over-production. charge more for waste disposal
You can only give away the stuff you "could" sell but can't find a buyer for, which (1) pretty much means no one wants it and (2) will poison your relationship with the people who sell you the stuff you *can* resell!