By Walt Hickey Lollipops The family-owned Spangler Candy Co. is at the center of a swirling issue about drop-shipping its iconic lollipop Dum Dums. The company sells a 400-pack of Dum Dums on Amazon for roughly $26. It also has a deal with the members-only Sam’s Club, where it sells a specially steeply discounted alternate version with 500 Dum Dums for $15. It’s pretty easy to see the arbitrage opportunity here, especially because of the process of drop-shipping, where a seller on Amazon sells a pack of Dum Dums for $25, then buys the Sam’s Club version, has it directly shipped to their Amazon customer, and hopes they don’t mind the extra 100 Dum Dums. They pocket about $6 after Amazon fees, but it does directly undercut the actual business that makes the lollipops attempting to sell their wares on the internet.
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