Charlie Munger recently opined that Costco has a long-term leg up on Amazon (“Costco presents some danger to Amazon”), and has the potential to be an on-line ‘titan’: “Costco is going to be an absolute titan on the internet”*
He might be right, later. But for the moment their execution is reminiscent of Amazon shipping circa 2012.
Recent mobility issues caused me to cancel the recent Costco trip, and to buy a half-dozen shelf-stable items online. Nothing too esoteric: Kleenex, laundry detergent, canned tomatoes, mixed nuts, TP, something else. Paper towels, I think.
Today FedEx is making the FOURTH trip out here to deliver a piece of my order. Given Costco’s preexisting near-zero margin on this stuff – they make the bulk of their profit from the membership fees – I’m thinking they’re losing money here.
And, my increasingly hardwired flygskam has me even less happy with a multiton ICE van making four round trips to deliver six things.
If anything, this has made me less likely to order from Costco, when I can have Amazon Day batch-deliver this stuff (along with everything else I’ve ordered from Amazon that fortnight) on Monday.
Just my 2c. They’ve got a ways to go online-logistics-wise
–sutton
he of the torn meniscus
*Full quote in context: “Costco is going to be an absolute titan on the internet because they have curated products that everybody trusts, and huge purchasing power on a limited number of stocking units” - DJCO annual mtg in Feb 2022