So some slightly damaged shirt, or a shirt returned and such, ends up sold by these secondary sellers as new. This is part of why people destroy clothes upon return, so that secondary sellers can't buy their own returned product at $1, and sell it making more than the original seller would have.
Not to mention, all returns I've been noticing, resold from Amazon, are heavily treated now with some sort of spray. I can only presume bedbugs were getting returned with used clothing...
* people buy something on Amazon, return it due to defect or just don't like it
* product is currently sold in lots via auction by Amazon via bids, wholesale (not on amazon.com, but via other channels)
* 3rd parties buy the lots, sort, and re-package and sell on Amazon
As Amazon joins all listings for "shirt brand $x colour $y" into one product listing, this means that the original seller of the shirt, even the brand owner, now is competing with its own returns.
Not sure how to make this clearer.