Dum Dums, the unofficial lollipop of pediatricians everywhere, are in a bit of a pickle.
Spangler Candy Co., the 115-year-old family business that owns the brand, recently noticed Amazon listings for its lollipops at a lower price than theirs, per Bloomberg.
Spangler’s investigation…
… revealed an Amazon arbitrage scheme that’s growing in popularity.
- Sellers list a 400-pack of Dum Dums on Amazon for $25, $1 less than Spangler’s price.
- When a customer makes an order, the seller orders a 500-pack from Sam’s Club for $15.
- Sellers then drop-ship the pops to the customer directly from Sam’s Club, profiting ~$6 after fees.
The predicament exposes the lax regulation of Amazon’s marketplace, and with Google searches for “Amazon dropshipping” up 50% YoY, it’s not just lollipops.
Even with Sam’s Club’s discount, if you’re looking for the best deal on Dum Dums, it’s hard to beat the doctor’s office.
Topics:
Food
