Amazon is launching a new second-hand storefront in Australia, competing with eBay to sell returned or used items at a discount.

The Amazon Warehouse storefront will offer pre-owned, used, and open box products across 30 categories including electronics, home improvement, kitchen, books, music, apparel, and toys. Each item will be graded “Like New”, “Very Good”, “Good”, or “Acceptable” to determine the value of the discount.

According to Matt Furlong, Amazon Australia Country Manager, Amazon Warehouse provides consumers with a wider selection of affordable products and gives pre-owned and open box items a “new lease on life”.

“Items are returned to Amazon for many reasons – sometimes a product is just not what a customer is looking for, or perhaps there’s a cosmetic defect or the packaging is damaged.

“These items can’t then be sold as new but are still great quality and in good working condition,” he said.

All items will be directly fulfilled by Amazon, and Prime members will receive free shipping on eligible purchases; Warehouse items will also be covered by Amazon customer service and return rights.