Cambridge Business Association
Why Costco Is the Anti-Amazon
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Why Costco Is the Anti-Amazon

PolyMatter
PolyMatter, 2019
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Editorial Rating

6

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Recommendation

As big-box stores like Sears and Toys “R” Us succumb to a “retail apocalypse,” Amazon’s success continues to skyrocket. However, the e-commerce giant still has a lot to learn, and an unlikely contender could offer guidance. Costco, a US wholesaler, is still chugging away with lower prices and a savvy business model. YouTube channel PolyMatter does a side-by-side analysis of the two retail giants. While the report might not reveal novel information to industry insiders, it provides interesting viewing for retailers seeking alternative business models.

Summary

US wholesaler Costco rivals Amazon with a business model that requires customers to buy memberships before taking advantage of its low prices.

Though some critics blame Amazon for the “retail apocalypse” that cut into the business of Sears and JCPenney and forced Toys “R” Us into bankruptcy, the common factor in these companies’ demise was a failure to change with the times. Sears became overly ambitious and quality fell, JCPenney abandoned its customers, and Toys “R” Us refused to embrace the internet age.

Meanwhile, other chain stores, including US wholesaler Costco, are booming. Costco, like Amazon, is a giant retailer. It sells a broad variety of goods, including groceries, alcohol, tires, pharmaceuticals and electronics. But Costco’s and Amazon’s business models are opposed. While Amazon customers can decide whether joining Amazon Prime offers value...

About the Speaker

PolyMatter is a YouTube channel that reports on economics, technology, and more.

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