A few weeks ago, I added some chai tea to my cart on Amazon, clicked the buy button, and didn’t think anything more of it.
That is, until it arrived a couple days later in a Walmart box.
I opened the box, initially not knowing what it was because I don’t usually shop at Walmart. What I found inside was the tea I’d ordered. It didn’t take much detective work to figure out what had happened: I’d ordered the tea from Amazon’s marketplace, where third-parties can sell anything from TVs to detergent. The seller that I’d bought from, named CasGlobal Commerce, accepted my order, then ordered the exact same thing from Walmart for a cheaper price, had it shipped directly to me, and pocketed the money.
It’s called “retail arbitrage,” and it’s more common than people think.
Source: Digital Trends
Date: January 29th, 2021
- Make sure you understand what “retail arbitrage” is. Basically a customer purchases from Amazon, but if the item is cheaper at Walmart, the fulfiller delivers the product from Walmart. They (the fulfiller) pocket the difference between the Amazon price paid by the customer, and the Walmart price they (the fulfiller) paid.
- Why does Amazon not allow its fulfiller to use Walmart to fulfill the orders? What are all the things that are issues?