Scam shops undercutting our retails

This has started happening to one of our products where a third party will swoop in and undercut the retail price on our product by $2-$3 and steal the buy box. Is this a common scam? Luckily the last two times it’s happened the offending shop was shut down pretty quick, but it’s annoying to keep getting notifications from Amazon that we need to lower our price to compete with somebody who doesn’t even have our product.

What is the end game with these scam shops anyways? From what I can see, they list hundreds or thousands of items that are $2-$3 cheaper than what’s available from Amazon and I don’t understand how they’re benefiting from this.