I wrote and deleted a long response. The short version is that they can be broken into two groups: 1. Distributors are paying well over wholesale and their mar

I wrote and deleted a long response. The short version is that they can be broken into two groups: 1. Distributors are paying well over wholesale and their margins are much closer to referral fees that really don't support the full retail effort. 2. Distributors are paying closer to wholesale but are buying junk that nobody actually wants. This is more like a ponzi scheme with items that theoretically hold value.