[detaro]

In theory he could just have people pay him the lower price and go through the eBay/Amazon "return" without actually shipping it back. I'm sure there is something against that in Amazon ToS though, and since the eBay resellers aren't actually doing anything illegal it could bring him legal trouble from them as well.

[Snuggly1]

We did attempt this, eBay would not allow it. I personally bought my own product from the arbitrager on eBay. waited for delivery. then initiated a return. They get a free shipping label from Amazon and email it to me the eBay buyer and charge for it. They charge about $10 shipping for that free label that came from my own store. when I contacted ebay and said "technically" the return is complete as this is where the destination would send it, they said until it has been actually shipped it doesn't count, even though it was coming to me anyway. the ebay seller then hits me with a 20% restock fee, together that arbitrager made off with over $20 from the buyer.

I wont even begin about how they use an Amazon issued credit card to get an additional 3% cash back on the purchase, or that they use an Amazon affiliate link to get another 5 to 8% commission. That is a whole story in itself.