So, in my city, there's a warehouse, they buy Amazon returns and surplus in bulk, every week on the same day, they fill shallow elevated bins ideal for picking through with the items. Day 1 everything is $25 an item, the price reduces each day until everything is $1 on day 7. It is a great low cost (it's actually profitable), probably profitable enough that if Amazon ran these themselves they could pay to process all the waste in an eco friendly way and not lose money.
Lots of places take Amazon returns and do something similar. There's an auction house near me that regularly auctions pallets of returns from amazon. A relative of mine used to run a store where she'd buy those pallets and repair the items and resale them. Usually most things are returned work fine, or are missing something you could get from lowes.
Amazon doesn't test a lot of their returns and they get sent out like that.
Bargain Hunt's business model is entirely reselling amazon returns.