I’m not best placed to give advice as I’m a small seller, not a business, but I’m successfully selling mostly used items, meaning incomplete and with faults.
I describe them in great detail for the buyers to know exactly what they’re buying; but the problem here, as you can see on this other post, GLITCH or new amazon policy? "Details" link next to seller's offer no longer clickable!, is that the “offer condition notes” seem to be getting discontinued, the offer details link disabled, no longer clickable. A few months ago, Amazon removed my own photos from sight, and now it’s the descriptions.
If you’re able to mention in the title itself that it’s factory seconds with faults, you might be OK…although even then, most people hardly read long titles these days. I’ve just refunded a buyer who wasn’t aware of the colour although it was in the title!
You might write something on the stock image(s) if there’s no other seller, if you create your own page and can post your own images.
I’d recommend first buying only a few to test first how it all looks when the page is done.