The Dum Dum discount dilemma

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.