Scalpers have snatched thousands of consoles from players. In an interview, one of them criticizes the negative portrayal by the press.
What are scalpers? These are people who use bots to buy products before others have the chance. They are usually sold at a higher price to those who missed out, generating a juicy profit. In the case of the PS5, this affected thousands of consoles:
- At a British retailer, over 2000 consoles were bought by bots
- In another case, a scalper proudly stated that he had snagged over 3000 PS5 consoles: That’s why you didn’t get a PS5 – bots buy up 3,500 consoles
- Also, over 1000 Xbox Series X were affected in one case
Now, one of these scalpers, “Jordan,” has spoken to Forbes. He feels misrepresented by the press and sees himself as a regular businessman trying to help others.
Who exactly is he? According to Forbes, Jordan is one of the co-founders of “The Lab,” a group that shows others how to become scalpers themselves. Jordan claims to have bought 25 PS5 consoles using bots and resold them at a high price: for 700 pounds instead of 450.
Bad press “unjustified”
What does he say about the topic? Jordan tells Forbes that he believes scalpers are portrayed too negatively by the press. He sees himself more as a regular businessman:
It seems there is a LOT of bad press about this incredibly valuable industry, and I don’t think it’s justified. We are just acting as middlemen for items in limited supply.
via Forbes.com
Jordan compares scalping to the supermarket chain Tesco, which buys large quantities of milk cheaply from farmers and then sells them at a high price.
No one would complain there, while scalpers are facing death threats from angry gamers, according to Jordan.
What this comparison does not take into account is the fact that scalpers bypass security mechanisms to gain access to the goods earlier. Jordan’s business partner, Regan, provided insights into the methods used. 3D Secure is mentioned, which is mandatory for merchants in the UK offering credit card payments.
Some bots can even bypass web browsers and have direct access to the retailers’ servers to get direct access to stock before it is even offered. This completely undermines fair competition, as “normal customers” cannot compete with these methods.
All out of charity?
How exactly do they help others? Jordan and Regan claim they help people in financial distress due to the Corona pandemic:
“I’m mostly just trying to help others now, that’s all that really matters to me. The whole group came together during the first lockdown in the UK and it makes me very happy that I can help people earn some extra money for themselves.”
via Forbes.com
Allegedly, they also make charitable donations. However, Regan did not provide any specific details to Forbes about whom or what is being donated to.
According to Regan, merchants are partly responsible for normal customers having little chance against bot users. Many update their offers at inconvenient times of the day, which benefits scalpers who are just waiting to pounce, while average customers look at the store later.
The extensive (English-language) interview can be read on Forbes.com.
What do you think about this? Can you understand the scalpers’ perspective? Or do you just see it as price gouging?
