Indeed, which is why it has probably skated under the radar for this long. I imagine this company’s success will eventually be its downfall in that the second when Walmart and Amazon see how much money is being made over this kind of arbitrage and that kind of money becomes significant they will quash it like a fly on the wall.
I doubt it amounts to enough merchandise for them to care about though, regardless of the margin. They make money on low costs and volume.