The story of how Swoopo gets and ships most of its items is like any other business, just like your local retail or electronics store. They deal and work with distributors who sell them large amount of items especially electronic gadgets like PS3s, MacBooks and Digital Cameras.
Swoopo then stores these items in their warehouse and get them out to ship whenever someone wins an auction. They gain a few bucks for that item after selling because it was purchased for less at a retail price. Also, they make additional money if the total number of bids on an auction is greater than the price paid. It is a win/win situation actually.
What if they run out of these items? Well, they do. Sometimes Swoopo doesn’t keep items on hand. Instead, they do what they call the “drop shipping.” They do it like this. This is where they tell a supplier (like Amazon.com, for instance) that they just sold something. The supplier Amazon will then ship the product, brand new and in original packaging, right to the door of the customer. This usually means you get the item faster because it only needs to go one place, and not two.
Regardless of how the item arrives to you, Swoopo usually fulfills orders within the first or up to 2 weeks and they are all-new, unopened and absolutely identical to anything you’d find at your local retail store.
For an additional explanation, check out the video. The following video shows the CEO of Swoopo explaining how his company fulfills Swoopo orders:
I hope these answers your questions on how Swoopo get and ship all their stuff. Remember that even the scarcity of a certain item auctioned can be a good reference to adjust your Swoopo bidding strategy. Learning and making use of the right one according to the situation is very important.