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See the 'Just mail it out, or bring it in.' section in:

Apple Trade In - Apple

To prepare your watch for trade-in see the 'Before you ship your Apple Watch' section in:

How to prepare your iPhone or Apple Watch for trade-in - Apple Support

or the 'Before you sell, give away, or trade in your Apple Watch' section in :

What to do before you sell, give away, or trade in your Apple Watch, or buy one from someone else - Apple Support

See here;

Apple Trade In - Apple