I support this idea as well.Don't get me wrong, I'm so grateful that people gifted me.But for example, this year, out of 15 gits I got 10 of them were all the same dress or backgorund.Like I can only have 1 of each in my wardrobe, now I have 9 left and not sure what to do with them.sending them back would be rude.

Can't support this idea.
Getting duplicates is part and parcel of the holiday giving process. it encourages re-gifting to someone who may need that item and it's a fun part of the surprise of looking under the tree.
I've really never seen this as being that much of an issue. I got a couple of duplicates this past year (I think exactly two), plus one non-WL item I didn't have a use for. They all went in my shop. I don't see that as a big deal I guess.
I guess I don't really feel like it's anyone's business what you do with an item they sent you, you know? Like what kind of friend is going to be watching your shop to make sure you don't sell a gift that you ended up not having a use for? Not a good one imo.
And none of that even addresses the possibility that someone may want or need duplicates, but may not have that marked easily on their WL. I know I have some items on there twice, but I wouldn't expect people to go digging through every category to check for an item.