Growing Trend: Businesses Flip Costco Merchandise for Profit

Increasingly, businesses in Japan are buying goods from Costco in bulk and reselling them for profit. This recent trend has stirred debate, as shops are cashing in on high demand commodities sold in the popular American warehouse club. While it appears to be legal, consumers are wary about price markup and product authenticity, which stimulates discourse on consumer rights and competitive market practices.

Japan is home to 26 Costco warehouses, popular for its affordability and bulk products. Recently, this sparked a trend of small businesses purchasing Costco items in bulk to resell in their own shops or online platforms. Japanese people generally frown upon such practices, considering it unfair competition, due to the high markup price and possible quality concerns. It also conjures debate on consumer protection laws and the ethics of reselling without initial producers' permission.

Parallel to the Japanese scenario, the US and EU have seen significant growth in reselling businesses. However, reactions vary. Some condemn these practices for inflating prices and exploiting consumers, while others see it as a viable business strategy making use of supply and demand. There are more stringent laws regarding reselling in the US and EU, including needing permission from the original manufacturer in certain circumstances.

Information for Your Country

For readers outside Japan, if you're interested in similar business trends, you may find this Forbes article on reselling retail informative. If you frequent a Costco, be aware of the global issue of reselling, and ensure the products you purchase meet your expectations of price and quality.