The Pop-Tart Conundrum

I have a burning question I want an answer to, but I doubt I can get the answer myself.

I love Kellogg's Unfrosted Brown Sugar Cinnamon Pop-Tarts. I have been buying them by the case from Amazon.com until recently. The price was about what twelve boxes should be from the local retailer, two dollars a box or twenty-four dollars. We get free shipping from Amazon.com because we are Prime members, so having them delivered every third month made sure that we had Pop-Tarts in the house when I wanted some without having to make a trip to the store. Last month Amazon doubled the price of these Pop-Tarts to over $40 a case which prompted us to cancel the scheduled next shipment of them.

I started to get curious about this price hike, so I went to Walmart.com and saw that they were still offering Pop-Tarts for $2 a box. I was able to get them shipped for $2 a box by ordering a case and a half (free shipping on orders of more than $35) the extra half-case I made up of unfrosted strawberry and blueberry just on a whim. I like them but they aren't the guilty pleasure that the brown sugar cinnamon ones are. They aren't the ones I loved as a child.

This is the question. Why the price difference? Both Walmart and Amazon try to be the lowest price available in a given market. If you think about it, Amazon should be offering a discount on the items because we were buying in bulk (factory labeled cases) and Walmart actually had to take the time to box and ship 18 individual boxes of Pop-Tarts to my home in their own shipping containers, a perfectly valid reason to tack on a processing fee which they didn't do.

Why are Amazon and several other online vendors acting like there is a shortage of Kellogg's Unfrosted Brown Sugar Cinnamon Pop-Tarts when Walmart is not? Why that specific flavor and not the other flavors? Why isn't there a bulk discount when shipped in bulk? Doesn't this fly in the face of economics 101? I would love to have an answer to this question.

(sent as a online query)



I copied and pasted the above text to Amazon as a review recently because the price has once again gone over $40 after briefly being back down around the acceptable $20 range for a few months. There is a third party seller that is selling two boxes (two boxes, you can see the pictures on their review) for $20! That is a markup 5x retail, making the current $42.87 case price with Prime seem cheap by comparison. However, I can still walk into virtually any super WalMart and pick up as many boxes as I want for $2 each which puts the case price that WalMart is paying somewhere in the neighborhood of $12 to $16 at most. I'm still not understanding why the price difference. I would love an explanation.

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