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Costco is the anti-Amazon

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Re: Costco is the anti-Amazon

#12
> To put it crudely, having someone in a Sprinter van deliver a recently-purchased toothbrush to your doorstep is simply not a universalizable action, from either a business or logistical standpoint. It is a modern feat that Amazon is capable of doing this, but that it can be done does not mean that it should, nor even that it can be done writ large. For most consumption, it is far more efficient for people to handle the “last-mile delivery” themselves by going to stores and buying a good amount of stuff when they do so.

When you order your X, a van doesn't drive from Amazon's warehouse to your home and then back with only your order. The van takes a van-full (hopefully) from the warehouse, and makes many stops at many homes, businesses, etc.

That seems more efficient, in terms of fuel, climate impact, etc., than each customer making a separate round trip. Is there data showing it either way?

Re: Costco is the anti-Amazon

#13
post #4

Whenever someone says America can do great things, I don't think of battleships, fighter jets, or AI models, I think of Costco.

I mean, Costco is great, but I think the purest expression of American capitalism is Buc-ee’s.

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Re: Costco is the anti-Amazon

#14

Costco is mostly food, clothes, furniture, other large things, and auto services, which generally you don't get from Amazon even if you aren't a Costco member. The points about less choice more apply to like Costco vs grocery stores or Walmart. And I do like Costco, similar low-choice reason I like Trader Joe's even though Costco is its own league.

As per their financials it’s roughly 50-50. I personally buy groceries and household consumables for the most part apart from the occasional electronics purchase.

IMO Costco’s food hits the sweet spot between high end grocery store quality and walmart level price.

Re: Costco is the anti-Amazon

#15

Costco is mostly food, clothes, furniture, other large things, and auto services, which generally you don't get from Amazon even if you aren't a Costco member. The points about less choice more apply to like Costco vs grocery stores or Walmart. And I do like Costco, similar low-choice reason I like Trader Joe's even though Costco is its own league.

Yeah I can’t get 5 different varieties of a ball bearings in the size I need delivered overnight from Costco. And for the things Costco or your local grocery store is great for, Amazon is often a far worse option. I noticed my wife was buying our toothpaste using a subscribe and save thing, so I compared it to our regular grocery store when I went shopping, and Amazon was like 20% more expensive. Great marketing on Amazon’s part getting people to assume it’s always the lowest price, but it’s often not.

Re: Costco is the anti-Amazon

#16
post #12

> To put it crudely, having someone in a Sprinter van deliver a recently-purchased toothbrush to your doorstep is simply not a universalizable action, from either a business or logistical standpoint. It is a modern feat that Amazon is capable of doing this, but that it can be done does not mean that it should, nor even that it can be done writ large. For most consumption, it is far more efficient for people to handle…

Indeed true. Even more efficient is when people can wait a few days and let Amazon bundle your orders and deliver on a designated day.

That said people don’t typically get in a car to buy one thing -though obviously sometimes they do. On average though their trips will be for multiple things. I still think even without using designated delivery days Amazon deliveries are more efficient than individuals going out to buy things independently.

Re: Costco is the anti-Amazon

#18

Costco is mostly food, clothes, furniture, other large things, and auto services, which generally you don't get from Amazon even if you aren't a Costco member. The points about less choice more apply to like Costco vs grocery stores or Walmart. And I do like Costco, similar low-choice reason I like Trader Joe's even though Costco is its own league.

Yeah I can’t get 5 different varieties of a ball bearings in the size I need delivered overnight from Costco. And for the things Costco or your local grocery store is great for, Amazon is often a far worse option. I noticed my wife was buying our toothpaste using a subscribe and save thing, so I compared it to our regular grocery store when I went shopping, and Amazon was like 20% more expensive. Great marketing on A…

The dumbest assumption I saw Amazon baiting people into was using Chase credit card points for purchases. You'd think spending those specifically on Amazon would be more efficient than just getting cash and buying from Amazon with that cash, right? Turns out it's the other way around, and by a large amount.

Re: Costco is the anti-Amazon

#19
The part about Costco choosing to avoid the last mile shipping problem reminded me of a proverb, roughly translated as:

A clever person solves a problem; a wise person avoids it.

I think it holds a lot of truth in engineering.

Re: Costco is the anti-Amazon

#20
post #12

> To put it crudely, having someone in a Sprinter van deliver a recently-purchased toothbrush to your doorstep is simply not a universalizable action, from either a business or logistical standpoint. It is a modern feat that Amazon is capable of doing this, but that it can be done does not mean that it should, nor even that it can be done writ large. For most consumption, it is far more efficient for people to handle…

Also this argument is easily refuted by the US Postal Service, which physically delivers individual pieces of paper in a few days, for pennies.
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