Can I Legally Compete with Established FBA Brand Name Bundles

I noticed a seller offering bundles of toiletries with well-known brand-name items (this is just an example, but it closely matches my situation). They’re putting together boxes with 25 different products—each from popular brands—and listing multiple variations of these bundles across different ASINs. It’s clear they aren’t an authorized distributor for all 20+ brands, but since the listings are well-established, they seem to be operating without issues.

What’s interesting is that the same products within can all be sourced at places like Costco. I realized I could bundle the same items, undercut the sellers FBA listings by $2 using MFN (Merchant Fulfilled), and still make a decent profit. They are very high volume listings, I would def get sales from MFN if the price is less. The numbers make sense, I tested it and got some immediate orders, but I’m more concerned about staying within Amazon’s rules.

When I checked the ASINs on Seller Central, there were no restrictions or approval requirements, and I was able to list the items without any problem.

Would this strategy be considered within Amazon’s policies, or are there potential risks I should be aware of?

I won’t even bother asking Amazon Seller Support, I would get 5 different answers if I asked 5 of them and they dont know what the hell theyre talking about. . Just looking for real practical advice.