Costco is the anti-Amazon
Points and comments are a snapshot, not live.
Costco's constrained, in-person model offers a more efficient and socially beneficial alternative to Amazon's e-commerce logistics.
The article argues that Costco's low SKU count (4,000 vs. 130,000 at Walmart) reduces consumer choice anxiety and enables closer supplier relationships, leading to lower prices and a negative cash conversion cycle. Costco's minimal distribution network uses cross-docked pallets, keeping selling, general, and administrative costs at 10 percent of sales versus Amazon's 40 percent delivery costs. This allows higher average wages ($21.29/hour for front-end associates) and a 6 percent turnover rate, compared to 150 percent at Amazon warehouses. The author suggests public grocery stores, like those proposed by NYC mayor Zohran Mamdani, could adopt Costco's model of low SKU count and high volume to keep overhead low and offer competitive prices.
What commenters are saying
Commenters generally praised Costco's efficiency and model, with one calling it a better example of American capitalism than battleships or AI. Several noted that e-commerce is still under 17 percent of U.S. retail, with large categories like cars, food, and gas bought in person. Some pushed back on the shopping experience, describing crowded parking lots, long lines, and impulse-buying layouts. A few pointed out that Costco's bulk model doesn't make sense outside the U.S. for many households, while others countered that urban members use cargo bikes or delivery services.