Costco and Amazon are known to be head on competitors as they both offer bulk goods through different means. However, in the past 18 months, Costco's retailers shares have remained unchanged, while Amazon's shares have more than doubled! For the first time ever, Amazon's annual revenue is expected to overpass that of Costco's. With about 81 million card holders, Costco has an advantage over Amazon by limited product selection, loyal customers, and fee income. Their no hassle return policy is also a reason many customers choose to shop here. However, not many have the time and effort to shop and search for an item at the huge department store. Amazon is more convenient, offers 2-day shipping, a much more variety of products and is usually cheaper. Other options such as Walmart, Target, and Kroger are also cheaper than Costco. Amazon appeals to the younger generation, as most don't have time to actually shop at Costco, or see it easier to make an online membership with Amazon. As a college student, I personally find it easier to shop at Amazon as it has everything one could ever need!
Very interesting! I like seeing articles that compare the benefits of online shopping and department store shopping. Not only are we seeing a cultural change, but also it shows a generational shift due to the millennial mindset. I believe that online shopping will eventually become the leading form of merchandise consumption. Ultimately time is the one commodity which cannot be replaced.
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