Resellers Using Bots to Buy High-Demand Game Console

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. scalper / ˈskæl pər / (n) – someone who buys large stocks of in-demand items and resells them at a higher price
    Example:

    The concert tickets immediately sold out, so my friend is planning to buy one from a scalper.


  2. ramp up / ræmp ʌp / (phrasal) – to quickly increase the size, speed, or amount of something
    Example:

    Many manufacturers ramped up their production before the holidays.


  3. get (one's) hands on (something) / gɛt hændz ɒn / (idiom) – to succeed in finding, getting, or having something
    Example:

    After going to several stores, I finally got my hands on the anniversary edition of the book.


  4. retail price / ˈri teɪl praɪs / (n) – the regular price of an item or product in a store
    Example:

    The retail price of my favorite candy bar is $1.


  5. ring / rɪŋ / (n) – a group of people who do illegal or dishonest activities
    Example:

    The police are investigating a ring of illegal traders.


Article

Read the text below.

Resellers have been using so-called scalper bots to buy the PlayStation 5 (PS5), causing the console to quickly go out of stock.


Scalper bots are software programs designed to monitor the stock of high-demand products on online retail sites. They send notifications to resellers when certain in-demand products become available, which allows resellers to buy the hot items faster than others. Some resellers also use advanced bots that can automatically purchase products as soon as they become available.


Resellers then put the high-demand products up for sale on other sites at a much higher price.


Following the launch of the PS5 last November, the use of scalper bots has ramped up.


Resellers saw an opportunity to overprice the console because buyers were willing to pay any amount to get their hands on it. The retail price of the digital edition PS5 is $400, while the console edition costs $500. However, resellers have been selling PS5 units on platforms like eBay and Amazon Marketplace for more than $1,000.


Bot security company Netacea estimates that a ring of resellers made between $1 million and $1.5 million in just two weeks following the release of the PS5.


To address the issue, some retailers are blocking bots when high-demand products became available.


During its Black Friday sale, Walmart blocked 20 million bot attempts to buy the restocked PS5 consoles.


According to Target, it is continuously monitoring bot attempts and blocking the bots from purchasing similar high-demand products.


Walmart information security executive Jerry Geisler said that retailers are currently investigating how resellers are using bots. He added that retailers’ detection tools evolve as bots change and become more advanced.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think bots will be an even bigger problem in the future? Why or why not?
• Do you think using bots to buy products should be made illegal? Why or why not?

Discussion B

• Do you think it’s okay to resell hard-to-find products at a much higher price? Why or why not?
• Why do you think some people are willing to buy hot products even if they are sold at a higher price? Discuss.