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They don't have to get it at wholesale price. They could have gotten one as a prize, but not want it. They could have gotten a great deal on one from AT&T or Ve

They don't have to get it at wholesale price. They could have gotten one as a prize, but not want it. They could have gotten a great deal on one from AT&T or Verizon or T-Mobile, but just want to turn the deal into more cash by keeping their old phone and selling the new one. They might have gotten cash back by buying it on a credit card and be willing to sell it for slightly under MSRP to arbitrage the difference. All of these could lead to lower than MSRP prices.

mikestew 4y ago
They could have gotten one as a prize, but not want it. Your examples are unlikely to be how a "third-party reseller" obtained the phone(s).
- commoner 4y ago
  Many people sell unwanted gifts and purchases that are not eligible for free return on marketplaces such as Amazon and eBay unopened. It's easy to sign up as an Amazon Marketplace seller, since there is an Individual plan with no monthly fees: https://sell.amazon.com/pricing#selling-plans https://sell.amazon.com/pricing#selling-plans In the past decade, Amazon started adding brand restrictions to prevent marketplace sellers from offering items on certain listings unless they met requirements set by the brand owner. This collapsed Amazon's marketplace for used goods of restricted brands and also hindered individuals selling new goods of restricted brands on Amazon. This lawsuit focuses on new goods of one of these restricted brands.
mwint 4y ago
> They might have gotten cash back by buying it on a credit card and be willing to sell it for slightly under MSRP to arbitrage the difference. Has anyone made this work? I tried to make it work. Even at 10% (Discover IT category + end of year match), you can’t buy something, have it shipped to you, sell it, ship it, and make money. Any online marketplace eats your profit very quickly with assorted fees.
- snazz 4y ago
  And the Discover bonus is limited to $75 in cash back per quarter at the 5% rate (at least on the card I have), which means you could probably do it once or twice before you’re back to earning 1%. And if you’re in the first year you’d need to wait until the card’s first birthday to get the other half, so you’d lose money until then.
- Zircom 4y ago
  If you contacts overseas and enough volume you can often move various electronics for a decent margin. It's pretty involved though. One of the routes I'm aware of involves buying gift cards from Kroger with a high cash back credit card during their frequent events where they offer extra fuel points on purchases. They don't charge activation fees on gift cards, and you can sell the fuel points accounts somewhat under the table on eBay, and then pocket the cash back from your credit card. Then you wait til black Friday or other sales, use the gift cards to buy electronics at discounted prices, and then ship them overseas to sell for a decent markup. It involves floating tens of thousands of dollars for several months though so not quite for your average individual just trying to make some quick cash.
- commoner 4y ago
  A better example is Chase's promotion with Apple this year, which involves Chase credit card holders being able to redeem Ultimate Rewards points at a higher rate of up to 1.5 cents/point on Apple products compared to the standard rate of 1 cent/point for a limited time: https://9to5mac.com/2022/10/03/chase-apple-products-redemption-value/ https://9to5mac.com/2022/10/03/chase-apple-products-redempti... Many of Chase's credit card sign up offers provide enough points for a cardholder to obtain an iPhone through this promotion. If the cardholder does not want the iPhone, they could resell it on a marketplace. Amazon Marketplace used to be one of these marketplaces until it started restricting listings for certain brands such as Apple.
jcampbell1 4y ago
We are talking about Amazon not eBay. None of these examples make much sense. The real issue is iPhones aren’t country locked and Apple works with a ton of retailers globally. It would just end up a cat and mouse game of Apple trying to figure out which desperate retailer is dumping inventory on Amazon in violation of Apple’s agreement with the retailer.
- whimsicalism 4y ago
  Amazon has third party resellers. It's more similar to eBay than you might rhink
  - jcampbell1 4y ago
    I know the process because I have setup an Amazon vendor account. You are not getting a vendor account to sell one phone you won in a bingo raffle.
    - jtbayly 4y ago
      I can sell on Amazon. Or I used to be able to. Most recently I tried to use my account to sell some iPad/tablet/phone stands for a school. They were brand new, never opened. Amazon wouldn't let me list them unless I could prove I got them from the manufacturer or something. It sucks. I'm sure the reason is because of fraudulent items, which also sucks. Pretty bad catch-22. Anyway, I got this seller account to sell a couple of books. Used it a couple of times a decade. If I won an iPhone in a raffle, I'd absolutely be trying to sell it on Amazon.
    - commoner 4y ago
      I used to have an Amazon Seller account on the Individual plan, which has no monthly fees: https://sell.amazon.com/pricing#selling-plans https://sell.amazon.com/pricing#selling-plans Prior to Amazon's brand restrictions, Amazon Marketplace was a popular place for individuals to sell unwanted new and used goods. Selling on Amazon was even easier than selling on eBay, since there was no need to make a new product listing with photos and descriptions. Most of the new goods sold by Individual sellers were not raffle prizes, but unwanted goods such as gifts, items obtained at a discount, and items that were not eligible for free return to the original retailer.

mikestew 4y ago

They could have gotten one as a prize, but not want it. Your examples are unlikely to be how a "third-party reseller" obtained the phone(s).

commoner 4y ago
Many people sell unwanted gifts and purchases that are not eligible for free return on marketplaces such as Amazon and eBay unopened. It's easy to sign up as an Amazon Marketplace seller, since there is an Individual plan with no monthly fees: https://sell.amazon.com/pricing#selling-plans https://sell.amazon.com/pricing#selling-plans In the past decade, Amazon started adding brand restrictions to prevent marketplace sellers from offering items on certain listings unless they met requirements set by the brand owner. This collapsed Amazon's marketplace for used goods of restricted brands and also hindered individuals selling new goods of restricted brands on Amazon. This lawsuit focuses on new goods of one of these restricted brands.

mwint 4y ago

> They might have gotten cash back by buying it on a credit card and be willing to sell it for slightly under MSRP to arbitrage the difference. Has anyone made this work? I tried to make it work. Even at 10% (Discover IT category + end of year match), you can’t buy something, have it shipped to you, sell it, ship it, and make money. Any online marketplace eats your profit very quickly with assorted fees.

snazz 4y ago
And the Discover bonus is limited to $75 in cash back per quarter at the 5% rate (at least on the card I have), which means you could probably do it once or twice before you’re back to earning 1%. And if you’re in the first year you’d need to wait until the card’s first birthday to get the other half, so you’d lose money until then.
Zircom 4y ago
If you contacts overseas and enough volume you can often move various electronics for a decent margin. It's pretty involved though. One of the routes I'm aware of involves buying gift cards from Kroger with a high cash back credit card during their frequent events where they offer extra fuel points on purchases. They don't charge activation fees on gift cards, and you can sell the fuel points accounts somewhat under the table on eBay, and then pocket the cash back from your credit card. Then you wait til black Friday or other sales, use the gift cards to buy electronics at discounted prices, and then ship them overseas to sell for a decent markup. It involves floating tens of thousands of dollars for several months though so not quite for your average individual just trying to make some quick cash.
commoner 4y ago
A better example is Chase's promotion with Apple this year, which involves Chase credit card holders being able to redeem Ultimate Rewards points at a higher rate of up to 1.5 cents/point on Apple products compared to the standard rate of 1 cent/point for a limited time: https://9to5mac.com/2022/10/03/chase-apple-products-redemption-value/ https://9to5mac.com/2022/10/03/chase-apple-products-redempti... Many of Chase's credit card sign up offers provide enough points for a cardholder to obtain an iPhone through this promotion. If the cardholder does not want the iPhone, they could resell it on a marketplace. Amazon Marketplace used to be one of these marketplaces until it started restricting listings for certain brands such as Apple.

jcampbell1 4y ago

We are talking about Amazon not eBay. None of these examples make much sense. The real issue is iPhones aren’t country locked and Apple works with a ton of retailers globally. It would just end up a cat and mouse game of Apple trying to figure out which desperate retailer is dumping inventory on Amazon in violation of Apple’s agreement with the retailer.

whimsicalism 4y ago
Amazon has third party resellers. It's more similar to eBay than you might rhink
- jcampbell1 4y ago
  I know the process because I have setup an Amazon vendor account. You are not getting a vendor account to sell one phone you won in a bingo raffle.
  - jtbayly 4y ago
    I can sell on Amazon. Or I used to be able to. Most recently I tried to use my account to sell some iPad/tablet/phone stands for a school. They were brand new, never opened. Amazon wouldn't let me list them unless I could prove I got them from the manufacturer or something. It sucks. I'm sure the reason is because of fraudulent items, which also sucks. Pretty bad catch-22. Anyway, I got this seller account to sell a couple of books. Used it a couple of times a decade. If I won an iPhone in a raffle, I'd absolutely be trying to sell it on Amazon.
  - commoner 4y ago
    I used to have an Amazon Seller account on the Individual plan, which has no monthly fees: https://sell.amazon.com/pricing#selling-plans https://sell.amazon.com/pricing#selling-plans Prior to Amazon's brand restrictions, Amazon Marketplace was a popular place for individuals to sell unwanted new and used goods. Selling on Amazon was even easier than selling on eBay, since there was no need to make a new product listing with photos and descriptions. Most of the new goods sold by Individual sellers were not raffle prizes, but unwanted goods such as gifts, items obtained at a discount, and items that were not eligible for free return to the original retailer.