The ethics of video game reselling and scalping

in gaming •  7 years ago 

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A hot button for many game collectors, resellers and scalpers make up a sizable chunk of the used and collectible game market. Most collectors seem to look at these people with anywhere from indifference to disgust due to how they can manipulate the market and inflate the prices of products. Is this the fair market in action or are they a scourge?

What's the difference?

Here's how I personally categorize these types of sellers. A reseller is someone who acquires products from various sources, mostly used. They tend to buy in bulk online, from Facebook and Craiglist, at garage sales, flea markets and from thrift stores. Resellers flip a higher number of more common items like consoles and popular titles that they've acquired at a good price.

On the flipside, scalpers target highly desired retail products and pounce on them to resell for huge profits to desperate fans. Items like Amiibos, new consoles on launch day and oddities like the Nintendo Classic Edition were prime targets for scalpers, who would buy out the entire stock of a store when given the chance. They're easy to spot when they list items on ebay and have a stack of a dozen item that's sold out everywhere.

What about the ethics?

I see no problem with resellers, who take a middle-of-the-road approach. They're basically people who've created their own business using arbitrage to find good deals and turn a profit selling their inventory at reasonable or market prices. In reality, they're not much different than used game stores. They don't have the overhead of a game store, but they also have to go out and find their inventory instead of it walking in their door.

While I'm a strong supporter of the free market, there is a big issue with scalpers cornering that market. Its no longer a retail item, in my opinion, when the entire retail stock is bought up by scalpers who double, triple or quadruple the price of something and create artificial shortages.

Where do I personally lie in this spectrum?

While I am a collector first and foremost, I do participate in both of these groups to some degree. I'll admit that I will occasionally buy an extra item, like an Amiibo, and resell it to subsidize the cost of the item I keep for myself. But I limit myself to only one extra item to resell. I will not buy out the entire inventory of a store if given the chance and I've passed on that opportunity many times. That being said, I rarely do this and I'm still torn on if my single item is a part of the bigger problem. Am I really any better than the guy who buys 20 SNES Classics and throws them all up on eBay?

Primarily though, I'm a reseller. I pick up games at garage sales, local Facebook groups and online, keep what I need for my collection and resell the doubles to lower the cost of the lots and sometimes turn a profit. Sometimes the profit is recycled into buying more games and other times its used to pay for household or family expenses. Its kind of a side business to help make ends meet, but I never look at reselling as a way to inflate the cost of games. I always sell for a fair price and I'm also willing to negotiate the price with people so we both get a deal we're happy with.

Bottom line

The ethics of reselling and scalping is subjective. Some people see no problem with it while others think it is a scourge that's ruining game collecting. I'm personally torn between thinking scalpers are bad and justifying the times when I buy an extra item to resell myself. Am I a significant part of the problem or just taking advantage of an opportunity?

What do you think on this topic? I'd genuinely like to hear some other opinions.


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Ahh, scalpers. While these colossal sacks of recycled worm excrement masquerading as ordinary human beings are a larger pain in the ass than sitting on hot roofing tar, they do occasionally screw themselves over so badly I almost feel sorry for them.

Consider the Halo 2 Limited Collector's Edition debacle, where scalpers snapped up thousands of copies of the game to re-sell, only to discover that Microsoft's idea of "limited edition" meant "limited to, like, fifty million copies". This meant gamers could walk into any store and pick one up with no problems, while so many would-be profiteers flooded eBay with copies that they ignited a price drop-off due to the massive competition, and after a week or so, you could get sealed new copies on eBay for far less than in-store prices because the moronic tubs of tears were desperate to recoup anything they could on their shitty investment.

The best part is that Microsoft made more copies of their "Limited Collector's Edition" of Halo 2 than they made normal versions of the game...meaning the basic Halo 2 in the green plastic DVD sleeve is actually worth more to collectors than the Collector's Edition steelbook simply due to supply.

So fret not: scalpers may be dicks, but at least the real world manages to dick them back from time to time. :)

This is a great post and very informative.

I am a reseller, as chronicled in my "Adventures in Reselling" series I was doing for a while. I am not a scalper. I don't really bother with the "hot item" of the week. Not because there is a ton of competition or that I cannot get it, I simply prefer to help others. If I do happen upon the "hot item" of the week at a price I like and I have a few spare bucks I will tend to grab a few but not because I searched it out.

When I do get this said item, I will normally price it halfway between the average price people are selling it for and what I paid for it. Knowing the fees involved with using services such as Mercari and eBay, only an idiot would buy at this price with intent to resell (they would actually lose money). I figure, when this item does sell, it is probably to a collector that genuinely wants it. Maybe not.

I do a lot of reselling though. I have a few rules I follow.

  1. I will not fight someone for an item. If they want it, they can have it. I have even offered items out of my basket to people that mention they were just looking for that particular item. I figure if they have the guts to mention that in the store, they probably really were looking for it. Then again, I could be that sucker a scalper got an item off of while in the store. I tend to try and lean towards the former though.

  2. I will not clear out a store of inventory on a couple of conditions. This one is hard to get across well. On one hand, I will not clean out a store. On the other, I will.

What I mean is, if this is my first time seeing something in a store on sale, I will only grab a couple. If the item is still there after multiple visits the following days, often a minimum of a week, then I will buy the remaining stock. I figure, anyone that was wanting the item had time to get it.

Case in point. Batman Unlimited Mini toys (series 2 and series 3). A local Wal-Mart had them on clearance for $0.65 each. I counted how many they had on the first visit and made a note in my cell phone. I visited this location four times in a 14 day period. Each visit, I counted those toys. Each visit there was the same number there, one visit there was actually another 10 to 15 of them (presumably an employee found them and put them with the others). They sell on eBay for about $5 plus shipping.

After 14 days I went ahead and bought all 50 or 60 of them. I figure after two weeks people have had plenty of time to find them in the clearance section and buy what they wanted (clearly no one wanted them).

I am a member of a lot of eBay flipper groups on Facebook, there is conversation left and right about the hot item this holiday season. Apparently it is the Fingerlings toy. So much so that Wal-Mart, Target, and Toys R Us have instituted strict 2 units per customer per day policies.

There are people in those groups posting pictures of 50+ Fingerlings in their cart (at $15 each) and bragging about it like it is a game or something. They sell for $25 to $150 depending on which one you grab.

I cannot stand people like that. There are genuinely interested parents that cannot buy those for their children because some ass hat bought the whole store out.

I hope a similar situation as to what @Modernzorker detailed about the Halo 2 game will happen to these people and Fingerlings.

I can understand grabbing a couple of each toy (there are six in the set) and selling them then going back and grabbing more. I cannot condone buying a cart full just to be a jerk.

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