The PlayStation 5 sold out rapidly and many were disappointed not to get the next-generation console. However, it seems resellers have been making a significant profit from bulk buying stock.
The launch of the PlayStation 5 was the biggest for any console ever, and many consumers struggled to get their hands on the console. The answer for some consumers was to enlist the help of scalpers, who had purchased numerous consoles to sell on for a profit.
One 22-year old in the United States managed to pick up a large number of the consoles and has so far received $40,000 from buyers in under a week.
The scalper who goes by the name Mark F (to protect their privacy) explained to Business Insider that they used bots and online purchases to secure 221 PlayStation 5 consoles. After this, they began to advertise the product online. Sure enough, there was plenty of willing buyers who would pay over $1,000 for a console that is worth half of that at retail. However, given that the buyer bought 221 devices, they may still need to sell more consoles to make a profit.
If $40,000 has been sent to the seller via Paypal, then they still need to sell a significant amount more to cover an initial spend of around $99,500 (given that they purchased 110 digital-only systems and 111 disc versions). Despite this calculation, the scalper is confident that the rest of their stock will sell and make them a significant profit.
This bulk purchase has likely been a calculated risk for the seller who has experience in the field and has made a profit from exclusive trainers as well as swimming pools when they saw a high demand this year.
Mark F explained to Business Insider that their approach to scalping is ‘If I can make a dime (and it’s legal), I’m buying and selling it.’ This method of investing appears to have paid off in the past and has allowed them to buy 221 consoles upfront this time around.
It seems that the early buyer has experience in the field, and it is likely that more buyers will go through them to secure a console. Nonetheless, this tactic is risky and the fact that, despite record demand, the seller has yet to turn a profit illustrates this.
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