It's not illegal to buy a product and then turn around and sell it at a substantial premium on eBay. Of course, being a legal activity doesn't make it right. This year, once again, popular toys for the holidays are being bought up by the opportunistic for resale to shoppers willing to pay more.
A report by Wales Online found Go Go Hamsters are being bought for around £9.95 each in stores and legitimate websites and then resold for up to £60 as supplies dwindle.
Gary Grant, owner of The Entertainer chain of toy stores and chairman of the Toy Retailers Association in the U.K., said, "Since late September, these toys have just caught everybody's imagination and are selling for vast amounts of money. In some cases it is the speculators that are causing the shortages by buying six, eight or 24 at one time. This is restricting the numbers available to genuine customers. And they are buying them to put them straight on eBay at inflated prices."
Some shops in the U.K. are placing limits on the number of hamsters individuals can buy to try and keep the unscrupulous from cornering the market.
The supplier of the Go Go Hamsters is telling consumers not to worry, saying more are on the way and will be in stores in time for Christmas.
"People are seeing the products listed as out-of-stock on websites, but that is going to be changing on a daily basis. We are rushing around every day making deliveries," said Jon Diver, managing director at Character Options. "People should not panic. There will be plenty of opportunities for consumers to find stock at general retailers."
Discussion Questions: Does there need to be a law to prevent the buying up of popular toys that are then re-sold at much higher prices on websites such as eBay or is this a healthy supply-and-demand principle at work?