Selling on Amazon has costs and benefits. This sort of scheme and Amazon's relative lack of merchant support are a few of the costs, but the benefits are that you get an incredibly stable, reliable, visible, trusted platform with a built-in audience.

I worked for a few years helping build a community around an arbitrage app (scan barcodes at Walmart, calculate your Amazon profit). There's really no end to people's ingenuity when it comes to identifying market inefficiencies. There's always going to be someone willing to take a risk and profit from it.