Struggling to buy a PlayStation 5 ? Not these guys. They catch hundreds of them every day.
A mysterious company called Cashout Kings paid $ 700 or more to resellers across North America for their newly purchased PlayStation 5 and Xbox Series X consoles . The goal: to resell them (again) at even higher prices.
The group receives and sells around 300 to 400 video game consoles a day, according to Orion, one of the owners. of Cashout Kings, who prefers not to use his real name. "Like when restocking (PS5, Xbox Series X) happens, we usually get 1 to 1.5,000 units in the same week and then it goes out a few hundred a day after that " he adds. .
You can see the stacks of PlayStat consolesion 5 that the group regularly collects and stores on the Cashout Kings Twitter account. The same account also encourages scalpers to sell their PS5s and other in-demand electronics to the group.
For ease of purchase, Cashout Kings has collection points in major cities across the United States, as well as several warehouses. to store inventory.
An eBay alternative
The group works as an alternative to eBay . With Cashout Kings, a scalper can sell as many PS5s as they have everything in one go and then receive a relatively quick payout. They also don't have to worry about scammers, like an eBay buyer claiming never to have received a shipment.
As a result, many scalpers have turned to Cashout Kings to offload their products. In return, they canDon't get paid thousands of dollars.
To communicate with resellers, Cashout Kings has a chat on Discord which currently has over 11,000members. There, the group will display the most recent prices for the products they are willing to wholesale. Recent purchases include $ 740 for a PS5 disc edition, $ 385 for a Nintendo Switch OLED model , and $ 1,280 for a iPhone 13 Pro Max 128 GB model.
“We've been doing this for over 10 years. We started off as one of those resellers. We have grown our network and established a good relationship and now we buy from other resellers, ”Orion tells us via direct messages on Twitter.
To help run the business, Cashout Kings employs "just about 10 people to manage users," says Orion. The group also employs staff to manage the receipt of products, which includes the use of warehouses in California, Delaware, Oregon and New Hampshire.
The big question is: where are all these PlayStation 5s going? In January, a discussion in the Cashout King 's Discord chat room mentioned selling units at achewholesale and foreign markets.
The deleted user appears to be an old account used by Orion.
This could mean that the PS5s are being resold for $ 1,000 or more, either through a third-party vendor on Walmart or through a digital retailer.ic in South America. But according to Orion, the information is essentially a trade secret. “If everyone knew the answer to that question, I wouldn't be in business,” he says.
How much Cashout Kings earns from sales also remains a mystery. But it's not hard to imagine the group making a fortune. For example, if Orion can resell 10,000 PS5s with a margin of $ 100, then his group should earn $ 1 million in profit.
But according to Orion, buying hot items wholesale is not always a safe bet. “The market fluctuates daily. Sometimes we even lose money, "he says.
For example, Cashout Kings tried to deal with PC graphics cards . "I did at one point [accept graphics card]. The market fell and to be completely honest out there is just too many variations to keep track of everything,” Orion says .
Hassle-free side activity?
Of course, the deal of the group may anger consumers who are still struggling to find a PS5, which continues to sell within minutes. But Orion doesn't see a problem. In fact, he says his company can help anyone looking to get rid of it. an extra PS5 for the money.
"It's really not hard for regular consumers to get these consoles on their own," Orion says. "Microsoft and Sony restock almost every week. It is just up to the consumer to know what time to restock. Plus, if you think about it,these are the consumers who sell us these consoles. We have created an easy and hassle-free opportunity for them to earn extra income at the same time. These days, a weekly paycheck is not enough to live on.
Cashout Kings is so simple that the group even encourages scalpers to ship products they buy from e-commerce sites directly to its warehouses in Delaware. , Oregon and New Hampshire. This has led us to wonder if any of the major retailers are aware of Cashout Kings, given the high volume of shipments to group shipping addresses.
The target responded, but with a master key instruction. "We have a number of measures in place to protect our website from bots and continually improve our tools and technology to track and block common bots," the company said. Amazon declined to comment.
According to Orion,Sometimes a retailer steps in and blocks suspicious shipments to a Cashout Kings warehouse. "It happens from time to time when a group of members order the same thing at the same time," he adds.
Cashout Kings is just one of the many groups that specialize in buying wholesale from scalpers. We found at least four other groups on Twitter that also promise to buy consoles in exchange for money. And apparently the services have been in demand.
"This is a matter of time and risk for most of us who consume more than 10 consoles per drop ", according to a member of House of Carts , a group of dealers. “If you sell them one by one, it will take a long time. If you sell on eBay, scammers are on the rise and eBay offers little or no protection to sellers.
"If you vend local products, meetings (in person) can become dangerous, ”adds the dealer. "Withdrawal services are fast becoming the perfect way to offload inventory. What's New Now to get our best stories delivered to your inbox every morning. " , "first_published_at ": "2021-09-30T21: 30: 40.000000Z ", "published_at ": "2021-09-30T21: 30: 40.000000Z ", "last_published_at ": "2021- 09-30T21: 30: 34.00000Z ", "created_at ": nul l, "updated_at ": "2021-09-30T21: 30: 40.000000Z "}) "x-show = "showEmailSignUp () " class = "rounded bg-gray-lightest text- md: px- 32 md: py-8 p-4 font-brand mt-8 container-xs ">
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