> Sellers scour the internet for products with lower prices than on Amazon. Then they post the items on the web site, wait for someone to place an order, purchase the product from another retailer, have it shipped directly to the customer and pocket the difference

I'm not sure why this is bad - compared with some of the stuff that goes on at Amazon - these are genuine products being sold at lower prices (apart from costing Amazon or another reseller a sale). Ultimately they will act to reduce the price on Amazon closer to the market price. With stocks and other financial instruments these types of arbitragers are expected and seen as beneficial to the market.

Is Spangler Candy Co the exclusive manufacturer of Dum Dums? It seems like they are trying to protect their high prices at Amazon, which is intentionally hard for commodity goods. This is only a problem for them because of highly variable pricing, this would stop instantly if they raised their wholesale prices to Sam's Club.