These two statements below should be uncontroversial:
1. If Amazon prints a defective book and rejects it in QC then Amazon should get no revenue nor should the author. It should be recycled. Another copy should be printed and shipped and the revenue distributed as normal.
2. If Amazon prints a defective book and it is shipped returned due to defect then amazon should get no revenue nor should the author. It should be recycled. A new book should be printed and sent to the customer (assuming they didn't ask for a refund) and no payment to author / no extra revenue recognition to Amazon.
But then:
3. It's better that Amazon resells products that are returned in perfectly good condition rather than trashing them (https://www.cnbc.com/2022/01/28/amazon-returns-what-really-h... https://www.howtogeek.com/what-happens-to-amazon-returns/ and a ton of other easy to find links)
4. Amazon should not resell products returned that are defective.
The problem is: how should it know? They can't take the word of the customer returning the product. Amazon does resell high value returned items like TVs and monitors after checking them. But the cost of looking for the defect in the book is quite high -- I'd be surprised if it gets more than a casual glance/flip through.
I'm not sure what they should be doing in this case, but I do think the comment "This means I don’t get paid at all, because they only pay me when a book is printed" is a side distraction.
True this was returned as "damaged" but how damaged was it? We aren't told and there are no photos.
1) This is the author, and these are rejected proofs or author copies. In which case, Amazon does not have the rights to sell them because they were not "returns".
2) This book has been sold once, and royalties have been paid, but it was returned, relabeled as "new" and sold again without a royalty being paid on that sale. The author and the customer have been cheated.
The thread has likely developed, but this is just going by my limited familiarity with publishing.
That's not very checked. And there's not much I can do but return it (they don't even have a "you got scammed, idiots" option to tell them to check again).
The math is simple. Books sent to customers minus books returned from customers equals royalties paid. And apparently that's not happening here.