Disclosed is an automated storage and retrieval system (100) for returned assets such as mobile phones and tablets that facilitates reduced labor for transporting into and out of inventory, reduced inventory levels, more accurate tracking of storage locations, and space savings. The system (100) comprises a warehouse management unit coupled to a cloud storage medium for receiving, and storing the returned assets and offering them up for bids through a communication network. The warehouse management unit has a receiving unit, a storage unit having sensor based storage racks (17), a retrieval unit and a packaging unit communicatively coupled to a computing device and a storage medium specifically a cloud network. The assets are graded by evaluating the degree of damage, defects, imperfections that might reduce the value, physical/cosmetic state of a device and the like. The system supports manual, automatic, and semi-automatic storage and retrieval operations with maximum reliability.