Are you wholesaling the products in bulk to yourself and then selling or are you drop shipping? If you are drop shipping the product comes from your business name and business address. You can return all damaged items to them according to there site by 'RMA number' only and the product gets mailed to you. YOU ARE RESPONSABLE TO ALL RETURNS. The products are technically yours once you buy them. I am a drop shipper myself. I suggest that if you sell as a drop shipper or even a retailer you set up a very strict return policy and specify all of your return costs in detail on your return policy including how long it will take for a replacement as well as how long they have to contact you for a replacement. Be very firm with it and follow the companies policies to the letter in any case. I made the mistake once and I got burned for 160 dollars.
As far as risk? Its all yours. As it is mine in my case. Your the retailer that is why I said you have to create your own return policy guided around your suppliers return policies and pad it in terms of a time frame if they say one week for returns and replacements you say two weeks. ECT. Also charge them for all shipping and any costs that you will incur, (supplies, time, phone calls). Also as far as there limited warranty? They are covering there but like I suggested you do above. Your store your policy. There store there policy.
Any further questions or info just ask. Hope this helps