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Fri Nov 24 2017 17:14:01

Reseller Grabs Truck Full of Black Friday Bargains

By: Ina Steiner

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An Amazon seller was blamed for ruining Black Friday for some shoppers when he and two family members filled one or two rental trucks full of items purchased at a Pennsylvania Walmart on Thanksgiving evening. The shopper in front of the checkout line ahead of the reseller said he took an entire pallet of Legos, "leaving none for anyone else," and openly discussed his plans to resell them on Amazon, a practice known as Retail Arbitrage.

Local news station WPXI.com said the "third party online company" showed up at the Walmart store in Indiana, Pennsylvania, and cleared the shelves, checking out at 6 pm on Thursday.

Some shoppers took to social media to express their anger, WPXI said - "One shopper posted video of numerous items being removed from the store. They were then loaded on what appears to be a U-Haul truck."

There was a mixed reaction on a Facebook thread about the incident. Some said it was "greedy" to leave little for other shoppers, while some saw nothing wrong with it. Others found the idea of people shopping on Thanksgiving Day to be disturbing.

Many brick-and-mortar retailers have created policies to address resellers, which some view as a problem.

There are lots of stories about Black Friday shopping today. The Washington Post said fewer people are visiting stores, so retailers are looking for new ways to attract customers.

"The shift comes as retailers - and shoppers - treat the holiday shopping season as more of a weeks-long slog than a one-day sprint. Discounts have become more spread out, both in stores and online, as consumers demand lower prices and greater convenience, which means the Black Friday frenzy isn't nearly as pronounced as it once was."

We sent an email inquiry to Walmart this afternoon for more details about the alleged reseller incident.




Comments (19) | Permalink

Readers Comments

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: eXtinctBay

Fri Nov 24 18:07:16 2017

As someone who buys and resells for a living, it would be hypocritical to complain about this practice. But I never source my goods in a retail store, no matter how inexpensive it is- my business operates on a much higher profit margin.

The fact is that Wal-Mart should have had a set limit per customer (like Target enacted after the Lilly Pulitzer incident). Also, I would assume that this Lego deal was in every WM nationwide, so the secondary market may be flooded with these kits.

If every store allowed arbitragers to buy these in mass quantities, the price will plummet soon. And there will be many of them returned at the first of the year when they cannot be flipped online for a profit at Xmas time.

The person with the moving truck should have not told the unhappy potential buyers that he was going to sell them on Amazon. If enough of them get together, they could each purchase something (not necessarily the Legos) and leave a negative feedback to the sellers account.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: futervest This user has validated their user name.

Fri Nov 24 18:07:44 2017

As a retailer Myself I to have used this practice often. However when I do I but items on final clearance.  Like for example, Many Walmart shoppers won't dream of shopping at K Mart. But when their items are on final The shoppers come out of the woodwork. I will often do large buyouts For both online and in my store I have no problem doing this In my opinion If these people wont support the store on a regular day theyshould have NO problem missing what they would not pay for even at 1/2 pric sale. But on the same token Buying up Black friday items Is just plain Rude . But if the store didnot have the forsite to limitt / coustomer They dont care as long as the sell them. Most resellers wont go if they can only buy 1.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: FeelingFroggy This user has validated their user name.

Fri Nov 24 19:08:55 2017

Sounds right to us. If the retailer didn't want it to happen then they should have put a limit on it. We do the exact same thing whenever we get the chance,

We just don't broadcast it to the world when we do it.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: RKTOYS

Sat Nov 25 08:43:29 2017

Bragging about it was stupid.  Although the last couple of years I've had with toys, that reseller doesn't seem very bright in general.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: dander This user has validated their user name.

Sat Nov 25 10:09:12 2017

don't brag about what you are doing. besides being rude its giving others an idea that they can do the same thing and ruins it for the rest of us. RA and how we do it is part of our intellectual property. Would you give out your pin # to your credit cards, or to your checking accounts.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: RKTOYS

Sat Nov 25 21:57:01 2017

Retail arbitrage is just a symptom of far deeper problems with the economy.  It shows that real jobs don't pay enough and the manufacturer-distributor-retailer pipeline is seriously broken.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: mindelec This user has validated their user name.

Mon Nov 27 00:24:43 2017

walmart can't be his only source since the toy category is gated at christmas or if it is he is gatting a nasty surprise about right now.  amazon isn't going to accept a receipt as an invoice of purchase and he won't be allowed to sell.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: Toucandeal
Web Site

Mon Nov 27 00:38:47 2017

Half of the items on amazon are bought from retail stores on sale and resold for profit. A little searching and I ALWAYS find a lower price. Back on the subject, this was very rude. Many people do all of their Christmas shopping on Black Friday because they can't afford the full price. It gives them the opportunity to give their kids a Christmas with extra presents. Black Friday is also loaded with Greedy people that will shoot you if you take the last item that they camped out in front of the store for. No thanks, I'll stay home.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: Moonwishes This user has validated their user name.
Web Site

Mon Nov 27 03:35:27 2017

@mindelec is completely right! I wonder if one of those buyers were the ones on the Amazon forum complaining about how they can't list things and can't list toys or particular products.

Amazon has gated many products so without being an authorized reseller, you can't sell them. And it is too late to list toys if you aren't approved for selling toys this season.

I think it is more than rude to have done this and especially talking about what they are doing. Sure, Walmart will have sold everything anyhow so what do they care, but their regular customers that saw this happen aren't going to be too happy with WM and for not setting limits.  

Amazon very much does not want retail arbitrage happening on their site, so just one person turning them in might have made for a very sad Christmas for these folks, especially if they try to sell huge quantities of the items at the same time, they will not have the appropriate invoices to show Amazon - so they can say good bye Amazon.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: VV

Mon Nov 27 09:24:57 2017

@moon "Amazon very much does not want retail arbitrage happening on their site"

You are so wrong. What do you think most of 3P sellers are on Amazon? Yes, it is getting harder as more categories are gated, but, with literally millions of listings it is quite easy to do retail arbitrage. Try going to a manufacturer now and buy wholesale to list on Amazon. Either the Amazon prices is equal to or less than they offer, or in most cases now, the manufacturer is selling direct there themselves.

Amazon is wholesale now.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: epuise This user has validated their user name.

Mon Nov 27 10:33:11 2017

a smart business man never reveals his merch source.

the pizzed off 'shoppers' who left Thanksgiving...
with their FAMILY...
forcing OTHERS to WORK in an open store...
should just tell themselves:
these toys are going to orphans in a foster home.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: eXtinctBay

Mon Nov 27 11:44:17 2017

@VV

''....Amazon is wholesale now....''

Yes, to an extent, they are.

And, in a strange twist, their gating of categories is actually helping keep eBay stay in business.

How? Many dropship sellers use their Prime accounts to buy low on Amazon, and flip for a profit on eBay to buyers who do not research prices. Also, a great deal of small vendors rejected by the gating process place their merchandise on the Bay, since they are not allowed to sell on the River.

Wonder if Amazon really knew beforehand that they, by limiting items in certain categories, would be losing many sales to their main competitor? Was this part of their master plan??

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: ignatz This user has validated their user name.

Mon Nov 27 12:38:46 2017

I'm surprised that Walmart doesn't impose a quantity limit on their BF specials.  Seems to me that's the answer to this problem.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: RKTOYS

Mon Nov 27 13:23:22 2017

"Yes, it is getting harder as more categories are gated, but, with literally millions of listings it is quite easy to do retail arbitrage. Try going to a manufacturer now and buy wholesale to list on Amazon. Either the Amazon prices is equal to or less than they offer, or in most cases now, the manufacturer is selling direct there themselves."

No kidding.  I see toys sold on Amazon for half of the "wholesale" price that I was offered when I was still trying to make a go at sales.  What I don't get is how you can say that after saying that retail arbitrage is easy.  You have to add 25% to your acquisition cost to cope with Amazon's 20% take in fees.

If Amazon is so cheap, flipping there is out by definition.  Everywhere else, at least in toys, is tough because everybody pulls out their phone and goes "b-b-but Amazon!"

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: VV

Mon Nov 27 15:13:09 2017

@RKTOYS - I sell on both. There are many ways to do arbitrage. It is getting harder to do on Amazon for sure. Was much easier just two years ago.

You make your profit when you buy and I'm not revealing sources!

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: RKTOYS

Mon Nov 27 16:28:30 2017

I don't believe that I asked for your sources.  Frankly, at no point was I ever interested in being another yard sale scrounger or Ollies Bargain Outlet.  Whoever wants that experience can have it.  Retail arbitrage is just not for me.

I forget where I heard it but I absolutely believe that business is all about concealing information.  Conceal sources, conceal ownership, conceal defects, conceal licensing terms, conceal billing structures, etc.  Just take the customer's money and disappear before they figure out who you are and what you've sold them.

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

This user has validated their user name. by: RKTOYS

Mon Nov 27 16:37:18 2017

That some resellers are upset about eBay's duplicity is ridiculous from a certain point of view.  eBay has worked very hard to conceal information from buyer and seller alike.  What those resellers are upset about is that they're on the receiving end of it this time.  All I can say is "welcome to the club."

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: thebobman This user has validated their user name.

Tue Nov 28 20:35:20 2017

This set? B06XDSN1MB

$20 on black friday, $43.41 on Amazon. Still not sure how anyone can make a decent profit on it.

Lets see, $20 for the item, $1 for tax, $10 to ship if you do FBM, $6.50 Amazon fees... probably make a whole $6 per unit.

Buy up 30 units? Possibly make a whole $180... I made that today selling a box of DVI adapter cables I bought for about $25

Reseller Grabs Truck Full of Black Friday Bargains   Reseller Grabs Truck Full of Black Friday Bargains

by: Scott98 This user has validated their user name.

Thu Nov 30 01:31:04 2017

There was a big article on this topic last week. The headline was 28 year old makes millions buying from Walmart (and selling on Amazon). Then you read 3/4 of the way into the article and that is only gross sales. His salary is $60k and he has to hire a dozen people.



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