Even if never worn, an item is considered "used" when it is on the secondary market.

COGS for this operation is not New Price. They are considered used, and that is taken into consideration. FMV is more like "worth" and used is not Retail value.

See if this helps:

I have a client whose retail storefront operation is to buy from you or allow you to trade-in children's clothes, toys and furniture. You get store credit or cash, depending on what you bring in. Everything she then puts for sale, price points run about 1/3 to 1/4 Retail. Brand new toys never opened are roughly 1/2 retail. When we value the inventory, we run about 1/2 of what she would sell it for, as the cost on hand.

So, your $60-$80 item is FMV about $5-$10. Check this:

http://www.goodwillswpa.org/UserFiles/File/Misc%20Files/Donation_Valuation_Guide.pdf