How do some ebayers sell new iphones for $200 less than the retail price?

I was looking at iphone 5c's and saw some for $370-$390 and was wondering. How do these people earn profit? They have 4-5 iphone 5C's available in stock too. Are these possibly scams? Refurbished new? Would it be safe to buy one?

Possibly refurbished. It should be safe to buy one. Maybe they have bought them off other people and are now reselling them. The retail price off contract is usually around $549, new. So it would be ideal that these are refurbished.

There are a lot of Chinese clones being sold on Ebay that look just like the real thing but don't sync with the App store or a Mac computer
I worry about someone who has more than 1 phone. If they have one it could be someone who got a cheap deal by buying a 2-year contract but are going to continue using their old phone and sell the new one for a profit. But Apple does not allow people to buy in bulk so you have to wonder if they are fake or stolen