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why is 30 series stock given over to retailers complicit with scalpers?

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raymondftz
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2021/09/27 13:38:34 (permalink)
I've been in notify queue's for multiple variations of the 3080 for months, like a great many other people, with no notification and still no card.  My little 1080sc still chugging away like a champ but he's hit that age where his joints start to pop and creak and he needs a nap in the afternoon. 
 
So why is it that, with so many direct consumers right here on EVGA page trying to buy products and unable to do so, stock is being turned over to newegg to be put in to their luck of the draw lottery system.  I know the scalpers are not EVGA or Nvidia's fault but EVGA has at least come up with something better than that lottery BS.
 
With newegg, amazon and ebay complicit in the scalpers actions and with "shuffle" still selling the cards at a considerable markup over msrp that EVGA probably doesn't see a cut of.  Wouldn't it make much more sense to encourage buyers here to EVGA to buy direct from EVGA? Doing so will not only encourage newegg and amazon to get their houses in order on this but will also earn EVGA a lot more brand loyalty by taking direct action to discourage and actively fight the scalpers.  Sure they are still going to have scalpers hitting the site here to source cards but their bots aren't going to give them the kind of advantage they have on newegg and amazon with the notification system. Especially with pretty minimal automatic matching for card, name, and address information to prevent multiple purchases. 
 
Just the two cents of a very frustrated gamer that really wants EVGA to just take his money.
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    Flint 1760
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/27 13:42:40 (permalink)
    It is called binding contracts.  Also, the majority of EVGA's revenue comes from the contracted sales.


    #2
    bill1024
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/27 14:16:51 (permalink)
    If EVGA did not have retailers selling their good, many people would never hear of EVGA.
    Search Newegg or Amazon for video cards and you get many manufactures to pick from, that's how many find EVGA...
    Also if EVGA went to selling only on their website direct sale, imagine the size of the warehouse they would have to have and the number of people to do all the shipping and receiving.
    The taxes and operational costs they will have to pay for the larger facilities and the payroll taxes on the extra employees.
    Why not let Newegg, Bestbuy, CDW, and Amazon deal with all those logistics.  
    If it were more profitable to sell only on their own site I am sure every manufacturer would be doing it that way.

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    #3
    talon951
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/27 15:22:16 (permalink)
    And in the long run EVGA I'm sure does not want to hurt their working relationships with retailers. With the massive size of Amazon in particular, you likely don't want a poor business relationship with them.

    Amazon = 800lb gorilla
    #4
    kevinc313
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/27 18:05:49 (permalink)
    Yeah it's annoying and it's lame that Amazon and Walmart aren't doing more.   Part of it is the quality of bots in use, there are groups with crazy high end bot servers, then just normal scalpers with paid subscription bots, and normal computer savvy people running scripts.
     
    But there's heavy scalper action at the places that sell in person like Best Buy and Microcenter, and Newegg Shuffle is packed every day with fake accounts shifting the odds.  Because of the above bot issue.
    #5
    Derren001
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/27 22:12:02 (permalink)
    kevinc313
    Yeah it's annoying and it's lame that Amazon and Walmart aren't doing more.   Part of it is the quality of bots in use, there are groups with crazy high end bot servers, then just normal scalpers with paid subscription bots, and normal computer savvy people running scripts.
     
    But there's heavy scalper action at the places that sell in person like Best Buy and Microcenter, and Newegg Shuffle is packed every day with fake accounts shifting the odds.  Because of the above bot issue.




    Best Buy at least seems to be trying.

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    #6
    kevinc313
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 05:02:41 (permalink)
    Derren001
    kevinc313
    Yeah it's annoying and it's lame that Amazon and Walmart aren't doing more.   Part of it is the quality of bots in use, there are groups with crazy high end bot servers, then just normal scalpers with paid subscription bots, and normal computer savvy people running scripts.
     
    But there's heavy scalper action at the places that sell in person like Best Buy and Microcenter, and Newegg Shuffle is packed every day with fake accounts shifting the odds.  Because of the above bot issue.




    Best Buy at least seems to be trying.




    They are for sure, but like I said there's still in person scalping by groups of people and the online system has been cracked/botted.
    #7
    transdogmifier
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 05:19:30 (permalink)
    It never ceases to amaze me how uneducated people are now...too busy being brainwashed that 'dur, capitalism bad...dur'...
     
    Understand how business works. As has already been stated....eVGA signed contracts to provide (insert number here) cards to
    amazon, newegg, etc.....they have no contract with you.
     
    They're required by law to provide those cards to the etailers and distributors.
     
    Yeah, it's frustrating, it's just how it works.
     
    Stop buying from scalpers and you'll see more cards available after a period of time. Why? Because scalpers won't want to eat
    the losses and they'll stop buying PC equipment (as much) when people don't buy the items at inflated prices anymore.
     
    But nope...your impatience, that you can't control, drives you to buy things (Not you specifically, btw...'general' you..) at
    the inflated price, thereby driving the scalper to get more so he/she/it can make more money ..and more..
     
     

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    #8
    rjohnson11
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 05:28:48 (permalink)
    EVGA's distributors and retailers are an important part of their sales. 
     
    EVGA is making video cards as fast as supplies allow them to do so. Demand just outstrips supply right now. 

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    raymondftz
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 12:37:08 (permalink)
    @transdogmifier   
     
    I specifically called out amazon and newegg because their marketplace/aftermarket sellers are using their platforms to scalp, specifically didn't call out all retailers because of this.  Scalping is itself damaging to the system of capitalism by exaggerating scarcity and artificially inflating prices, something newegg is also guilty of taking advantage of by marking up the price on cards well above msrp on their absurd lottery system so even IF you are lucky enough to be among the chosen you're going to be paying newegg an extra 10-20%.  10-20% that EVGA is probably not seeing any of. 
     
    the market as it stands in this situation gives the power not to the retailers but to the suppliers, EVGA, MSI, Nvidia, etc in this case.  And while lawyers are jerks they are jerks that are very good at making arguments about things like "the contract has not been upheld as the consumers are unable to obtain the product due to insufficient safeguards by party 1 resulting in party 2 breaking the contract to ensure flow to consumers and protect the ongoing market viability, and image of same... yadda yadda yadda".  So ya, contracts shmontracts.
     
    The situation is not the fault of any of these parties but two of the largest online retailers for computer components (and consoles, anyone try to get a ps5?), newegg and amazon, are not protecting their consumers and damaging the market by their inaction or sometimes half measures like shuffle.  
     
    Another unmentioned aspect comes down to something far worse than internet whining and that's when politicians get involved.  British parliament has already talked about introducing an act to curtail scalping () earlier this year because of this issue and there is absolutely nothing worse for capitalism than govt regulation.  
     
    I'm not even going to say that pulling stock from newegg and amazon and selling direct is the right answer, it is at least an answer, but I am saying that something has to be done at this point beyond what has been done and more notably not done.  You may notice that as of yesterday EVGA has even had to turn off the notify system for new people joining the queue because of how bad this has gotten just within the EVGA store microcosm.  And it's fair to say that the majority of the consumers in this market are not coming here to join the queue in the first place and still the queue is so long that they had to make the decision to cut off the system from people joining it.  In part because a portion of the stock has been released to newegg and amazon and an overwhelming majority of that stock has ended up in the hands of scalpers, not consumers. 
     
    You are also 100% right that NOBODY should be buying from the scalpers.  Starving the scalpers out is definitely the right way to put an end to them, my idea would starve them out by reducing demand by putting more product in consumer hands.  It's an active solution rather than the patient and passive solution of leaving them to sit on their stock while waiting for them to go hungry.  But there always seem to be people with more money than brains that will shockingly pay $2k for a $900 card.
    #10
    rjohnson11
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 12:55:39 (permalink)
    raymondftz
    @transdogmifier   
     
    I specifically called out amazon and newegg because their marketplace/aftermarket sellers are using their platforms to scalp, specifically didn't call out all retailers because of this.  Scalping is itself damaging to the system of capitalism by exaggerating scarcity and artificially inflating prices, something newegg is also guilty of taking advantage of by marking up the price on cards well above msrp on their absurd lottery system so even IF you are lucky enough to be among the chosen you're going to be paying newegg an extra 10-20%.  10-20% that EVGA is probably not seeing any of. 
     
    the market as it stands in this situation gives the power not to the retailers but to the suppliers, EVGA, MSI, Nvidia, etc in this case.  And while lawyers are jerks they are jerks that are very good at making arguments about things like "the contract has not been upheld as the consumers are unable to obtain the product due to insufficient safeguards by party 1 resulting in party 2 breaking the contract to ensure flow to consumers and protect the ongoing market viability, and image of same... yadda yadda yadda".  So ya, contracts shmontracts.
     
    The situation is not the fault of any of these parties but two of the largest online retailers for computer components (and consoles, anyone try to get a ps5?), newegg and amazon, are not protecting their consumers and damaging the market by their inaction or sometimes half measures like shuffle.  
     
    Another unmentioned aspect comes down to something far worse than internet whining and that's when politicians get involved.  British parliament has already talked about introducing an act to curtail scalping () earlier this year because of this issue and there is absolutely nothing worse for capitalism than govt regulation.  
     
    I'm not even going to say that pulling stock from newegg and amazon and selling direct is the right answer, it is at least an answer, but I am saying that something has to be done at this point beyond what has been done and more notably not done.  You may notice that as of yesterday EVGA has even had to turn off the notify system for new people joining the queue because of how bad this has gotten just within the EVGA store microcosm.  And it's fair to say that the majority of the consumers in this market are not coming here to join the queue in the first place and still the queue is so long that they had to make the decision to cut off the system from people joining it.  In part because a portion of the stock has been released to newegg and amazon and an overwhelming majority of that stock has ended up in the hands of scalpers, not consumers. 
     
    You are also 100% right that NOBODY should be buying from the scalpers.  Starving the scalpers out is definitely the right way to put an end to them, my idea would starve them out by reducing demand by putting more product in consumer hands.  It's an active solution rather than the patient and passive solution of leaving them to sit on their stock while waiting for them to go hungry.  But there always seem to be people with more money than brains that will shockingly pay $2k for a $900 card.


    Right now if you look on Newegg there are upper tier video cards for sale there well over MSRP. Those cards have been sitting there for a while at the inflated price because no one is buying them. Some of those cards are selling mainly to people who need them badly and can't wait. This situation isn't going to get any better for months and sadly nothing can be done to improve the situation. 

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    #11
    evga1081
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    Re: why is 30 series stock given over to retailers complicit with scalpers? 2021/09/28 13:23:36 (permalink)
    Any supply chain contract could have an included clause to force retailers to implement minimum standards in retail sales to reduce the ease of scalping. EVGA, or any company, could frame it as action to protect their reputation. 
    #12
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