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Costco is the anti-Amazon

phenomenalworld.org

41–50 of 610 posts

Re: Costco is the anti-Amazon

#41

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.

Incredible quote, thank you for posting it

Re: Costco is the anti-Amazon

#42

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.

I hear this, I have been in plenty of meetings where I propose a solution that eclipses most of the project requirements, often for a product person to turn around and say something like “yeah but I like working with X techhnology”, for example Tailwind.

Okay you like Tailwind because you seem to think “p-2” is better than specifying “padding: 2rem;” because when it comes time to tinker with things you don’t want to understand CSS, you want to play with Tailwind.

Re: Costco is the anti-Amazon

#43
post #33

> Even if you think it is preferable at an individual level, there are good reasons to question the social value of the logistical complexity that it necessitates. Home delivery of single-packaged items entails an entirely different cost structure than freight trucks driving to consumer-facing warehouses delivering entire pallets of goods to be driven home by customers themselves. Ok, so 100 people can all drive to t…

But most people go to Costco for bulk buys. amazon deliveries are almost daily sometimes multiple a day and STILL have the same giant trucks dropping off product at distribution centers.

Re: Costco is the anti-Amazon

#44
I nodded along to much of the article, but I really think it's wrong to see this as a model for public grocery stores. The analysis is glossing over a lot of the key factors that Costco uses to make its logicstics model work. You can't buy small quantities, so the staff don't need to spend much time breaking down pallets; you're not allowed in the building without a membership, so there's little need to invest in behavior policing or loss prevention.

Re: Costco is the anti-Amazon

#45
post #33

> Even if you think it is preferable at an individual level, there are good reasons to question the social value of the logistical complexity that it necessitates. Home delivery of single-packaged items entails an entirely different cost structure than freight trucks driving to consumer-facing warehouses delivering entire pallets of goods to be driven home by customers themselves. Ok, so 100 people can all drive to t…

Yeah, this argument falls flat on it's face. Of course it's more complex than that.

When I worked from the office, centralized retail was very convenient and hardly added any driving. If you work from home, the opposite is true.

The next revolution would be to standardize reusable packaging, that same daily delivery truck could bring that back. But only government could make that happen.

Re: Costco is the anti-Amazon

#46

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.

I think a lot of people buy furniture and clothing on Amazon. It's extremely cheap and easy to return, or just throw away if you can't return it (not endorsing that).

I purchased a new mattress to fit my fold-out futon frame, from Walmart.com.

And the reason I chose Walmart at that time is because they offered good products, mostly first-party inventory (despite the marketplace format) but moreover, they offered a quick add-on option at checkout to hire a haul-away service to come to my door and haul away the junked, old mattress.

I own no vehicle; I live on the second floor no elevator, and the haul-away service was a godsend and a bargain price.

Re: Costco is the anti-Amazon

#47
post #23
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.

Agree 100%. Costco exemplifies american dream... recent immigrants perusing well-stocked aisles, friendly employees, ample parking, cheap tasty hot dogs, etc.

The hotdogs. You know the world is ending when Costco raises the prices of their hotdog.

Re: Costco is the anti-Amazon

#48
post #31

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.

Both spectrums are hard. Solving last mile is really really hard, but if you do that's a huge moat (aka Amazon). If you avoid last mile, you best deliver value in some other way, which Costco does by giving you more per dollar than anyone else.

They also offer some degree of curation, so your dollar goes further by volume/weight/unit on average, but also in less quantitative ways quite often. I trust what I buy from Costco, but I’ve completely stopped buying from Amazon (many years ago now) because apart from the poor value prop, I simply don’t like the quality or reliability of what’s offered.

Re: Costco is the anti-Amazon

#49
post #33

> Even if you think it is preferable at an individual level, there are good reasons to question the social value of the logistical complexity that it necessitates. Home delivery of single-packaged items entails an entirely different cost structure than freight trucks driving to consumer-facing warehouses delivering entire pallets of goods to be driven home by customers themselves. Ok, so 100 people can all drive to t…

> I suspect delivery of single items cuts back significantly on trips to the store.

Amazon is also specifically incentivized to be efficient at scale, it impacts their bottom line to the point where they care about the shape of their vehicles. Individuals don't operate on the same scale so these sort of micro-optimizations don't happen.

Re: Costco is the anti-Amazon

#50
post #23
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.

Agree 100%. Costco exemplifies american dream... recent immigrants perusing well-stocked aisles, friendly employees, ample parking, cheap tasty hot dogs, etc.

ample parking? Not at any locations in my area. Even on weekdays.
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