Anybody who has a delivery address in Japan can find a watch listed by a Japanese seller and then list it at a higher price on US eBay; if the US listing sells, buy it from the source in Japan then reship it. If the Japanese one sells first, just drop the US listing, you're out the fee. If you happen to get caught with an eBay sale you can't fulfill, cancel the sale, eBay isn't too punitive in these situations. No need for any coordination, the Japanese seller is probably unaware of your listing or business. And nothing stopping multiple middlemen from making the same arbitrage play.
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