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What do you do when someone gifts you a figure that you don't really want in your collection? Would you feel bad selling it?

It depends. If i know that the person spent a lot on it or went out their way to get it for me, id probably feel bad selling it. I guess i would bring it to my work place if i dont want it in my displayed collection at home.

A coworker brought me an obvious knock off from her holliday and she was so proud of finding it for me.its now at my workdesk because its so sweet that she wanted to gift it to me. It is the thought that counts 🙏

Sometimes tho, unfitting gifts (and old figures of my collection i got bored staring at) goes to a respectful storage in my celler straight to an old cupboard with windowed doors (my old figures back into their boxes)

I've had this issue and in my case I brought it up to the person, it would still depend on how comfortable you feel talking to this person, but I explained that I have a limited space and I am really picky with what I choose to display, that I appreciated the thought of gifting me something that is part of my hobby and asked if they would mind if I sell it to buy another figure that is more fitting of my likes and would still be seen as their gift.

I think depending how well befriended you are I would either bring it up or not. If its a really good friend I would maybe ask if theres a chance to return it and get a figure you really want for it, but also saying that you really appreciate the gesture and that you are happy they atleast try to engage with your hobbies and interests! If you know the person would be really hurt tho, I personally would propably simply keep it, atleast for a while and maybe eventually sell it in the distant future!

I don't think it would be bad to sell it, however I would wait a little. Maybe the figure will grow on you? But if you really dislike it, I would maybe try and speak to the person that bought it and ask them to return it, or maybe just try and ask them for the receipt and return it yourself(if they bought it in-person).
Either way, you should probably talk to the person who gifted it to you!

If its cute, I would find a place, but I would tell the person, to speak with me, what I like, before gifting me another one.
If I did not like it, I would take it to my workdesk or a place on my windowsill and talk to the person too. Maybe after a time, I would store or sell it.

I would probably keep it but display it more in the back on a lower shelf.
Honestly, even if it's a cheap bootleg (like my niece bought, she meant well but she doesn't really understand it) I would keep and
use it to practice painting techniques on it to try make it look better.

Depends. If it is a bootleg and I really like the character I may get the original myself and give the bootleg away. These case I had once in my collectors life until now. And it was important for me to get the original because it was a gift from my mom (which I won on ebay, thought it was original and asked for it for Christmas. In German we call this "Eigentor" xD).

If it is original and I only don't want it, I would wait a certain time (one or two years, I tend to cling to gifts nonetheless) and sell it or gift it away. Depends on the relationship to the person, too.

I say thank you and keep it

If it's an original it stays either boxed or unpacked in my showcase (box in basement)...
then I forget about it and at some point go to a convention with a Bring and Buy section and while thinking about if I want to bring something, said figure prolly ends up in being sold.
Or gifted to someone who likes it more than I do.

If it's bootleg it will collect dust for a while until I throw it while deep cleaning - which i do like every 2-3 years.