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Posted by bookofjoe 1 day ago

Costco is the anti-Amazon(phenomenalworld.org)
537 points | 537 commentspage 5
VladVladikoff 23 hours ago|
I really don’t understand why people are so passionate about Costco. Every time I try to shop for items there, it is always cheaper elsewhere. Perhaps this is just Canada vs USA, but Canadians are extremely passionate about Costco too. A good example I saw recently was toilet paper. Their cheapest 30 pack was $30, when I can get basically the same product for $20 at Food Basics. But it’s not just one item, it’s every item in the store, there is always a better deal elsewhere. I honestly believe that people are suffering from mass delusion, and thinking they are getting a good deal “because bulk” without actually doing price comparisons. The only exception I’ve ever found for this was car tires.
diogenescynic 17 hours ago||
Costco works hard to charge you less. Amazon works hard to charge you more.
davidk42 19 hours ago||
Hate Costco. Buying from Amazon
mattmaroon 1 day ago||
Costcos tech stack is frankly unconscionably bad. It’s the one way in which Sam’s Club crushes them.

There’s no reason they couldn’t do basically all of the good things mentioned in this article plus have a functional website, let me scan and pay with my phone in store, have a handheld scanner at each register, etc.

ssl-3 12 hours ago||
> a functional website

It works for me. Am I holding it wrong?

> let me scan and pay with my phone in store

That's already beginning to happen: https://www.cheapism.com/costco-scan-and-go-technology/

> have a handheld scanner at each register

I've seen handheld scanners at each Costco register that I've ever paid attention to.

mattmaroon 4 hours ago||
Costcos give a scanner to the person running the self checkouts, not to the customer, so you have to wait for them to come over. They are very attentive usually but still. (Perhaps this isn’t the case at all of them but I’ve seen it several times in various states.)

Their website/app makes it impossible to just see what’s in store at what price. Go search for coca cola and I see the price to have it delivered (much higher than in store) and a link to instacart. No pickup options or even prices.

On Sams Club’s website I can see that in store price and order it for pickup.

Again, Costco could keep the things we all like and just have basic 2018 functionality, it isn’t hard.

bell-cot 9 hours ago||
Very few people are shopping at Costco for their tech stack.

And maybe it's just their talented/experienced/numerous staff, but my in-store experience with their tech is as good as it gets. Stuff just works, and works quickly.

mattmaroon 2 hours ago||
Ok, load the app and search for Heinz ketchup and tell me what it would cost to go get some in store.

You can’t. You can only get delivery pricing. They don’t have the basic functionality every store has had for a decade.

Go to self check-out and grab a scanner for your heavy items, which they sell many of. You can’t, they don’t have them, you have to wait for the attendant to get to you with it. (They’re generally good at their job but it’s still annoying if you’re in a rush.)

Sam’s Club is as good as it gets tech-wise, in-store and out. They even have AI that allows the exit door receipt checker to skip checking people so you don’t get stuck in a line waiting for someone to verify you paid for everything.

bell-cot 48 minutes ago||
> Ok, load the app and search ...

> Go to self-checkout and grab ...

Okay, but what if I really don't care about those important-to-you features?

Based on Costco's membership numbers, I might have a whole lotta of company in that regard.

bell-cot 11 hours ago||
> That said, there is no question that, in a better society than the one we have, key parts of Amazon’s operation would be retained for offering functions that contribute to the social good. The capacity to deliver prescription medicines same-day to the elderly is a genuine social contribution.

You know you're old when...

1920's-era "kid on bicycle" tech could do that. Ditto any healthy local social network. I do it occasionally for less-healthy family & friends.

Or - how many housebound elderly folks are already using DoorDash & similar?

Bigger picture, the best practice would be a dedicated service for this. Staffed by Nurse Aides, who interacted enough with their clients to notice developing problems early. Because compared to occasionally cycling old folks through the hospital - for "easily treated, if noticed sooner" conditions - that would probably have a negative cost.

kittikitti 23 hours ago||
I think Costco is good, but it's vastly overhyped. Comparing the two is just ridiculous. Having only 4,000 SKU's and thinking less choice is good is brainrotted. Costco shoppers are annoyingly conformist.

Costco is an exploitative mega-corporation and Amazon is too. Ask a Costco enthusiast and they will say they do it out of the goodness of their heart. It's really annoying and makes me completely avoid Costco. Please, tell me again how you think Costco hotdogs were invented by Jesus Christ and how you love guzzling down their wieners.

hahahaa 19 hours ago||
I agree IKEA is my cathedral. Aldi Süd is my shrine.
kulahan 20 hours ago||
You should look up choice paralysis if you think that less choice being good is somehow "'brainrotted'".
tonymet 1 day ago||
I admired Costco for installing USA-made manhole covers rather than use those made in India, which most municipalities have shifted to for lower cost.

I’m probably the only person who would notice that. Sort of how Steve Jobs explained that a good carpenter cares about the backside of the dresser as much as the front, even if no customer will ever notice.

SoftTalker 1 day ago|
Thanks for an interesting comment! (No irony intended).
arealaccount 23 hours ago||
Oh man we went to Costco today to purchase a membership, was finally convinced after all of the $1.50 hot dog memes

It was a used car tier hard sell to get the “executive” membership, after saying no a half dozen times literally everything we said was an invite to highly recommended the damn executive card.

Then they offer $20 back on your membership if you sign up for auto pay (and install the costco app on your phone and give up your email and phone). But you need a card, and it can’t be Amex, Mastercard, or Discover, so of course the very highly recommendation is to get the Costco Visa. It has no annual fee and you get %2 back, and even if you don’t spend enough you'll get a minimum of $65 back, which is the difference between the regular card and the executive. So the executive card is basically a no brainer.

Well we couldn’t get the $20 back coupon and at this point im feeling like Costco isn’t as customer friendly as the internet says, but it turns out we can actually use discover (debit only) on the phone app. Even though honestly the executive card pays for itself, also the Costco visa has no annual fee you can just get it and never use it.

I ended up getting the plain gold star card, got some free samples and was thoroughly impressed with the $1.50 hot dog. But I think I hate this store, onboarding was such a shady process.

_RPM 19 hours ago|
You can sign up online, which you should have done, the guy you were taking was doing his job.
arealaccount 8 hours ago||
I understand the guy and his manager he called over for the hard sell were doing their jobs, that’s exactly the point.
mmooss 1 day ago||
> 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?

bryanlarsen 1 day ago||
Here's one study sort that answers your question

https://news.umich.edu/carbon-emissions-and-grocery-shopping...

In-store pickup using a internal combustion engined vehicle produced more emissions than any other option studied.

mmooss 1 day ago||
Great, thanks. Here's the abstract. And for context, it's a collaboration with Ford Motor Co.

... We report and compare the greenhouse gas (GHG) emissions for a 36-item grocery basket transported along 72 unique paths from a centralized warehouse to the customer, including impacts of micro-fulfillment centers, refrigeration, vehicle automation, and last-mile transportation. Our base case is in-store shopping with last-mile transportation using an internal combustion engine (ICE) SUV (6.0 kg CO2e). The results indicate that emissions reductions could be achieved by e-commerce with micro-fulfillment centers (16-54%), customer vehicle electrification (18-42%), or grocery delivery (22-65%) compared to the base case. In-store shopping with an ICE pick-up truck has the highest emissions of all paths investigated (6.9 kg CO2e) while delivery using a sidewalk automated robot has the least (1.0 kg CO2e). Shopping frequency is an important factor for households to consider, e.g. halving shopping frequency can reduce GHG emissions by 44%. Trip chaining also offers an opportunity to reduce emissions with approximately 50% savings compared to the base case. Opportunities for grocers and households to reduce grocery supply chain carbon footprints are identified and discussed.

It's interesting that consumers driving EVs reduce the cost on the same scale as deliveries (presumably in an ICE vehicle).

They omit apples-to-apples comparisons (at least from the press release and abstract)

  * Consumer ICE vs. Delivery service ICE
  * Consumer EV vs Delivery service EV
  * Sidewalk delivery robot vs Bicycle or ebike
The last is a bit bizarre - comparing a 2-mile radius sidewalk mechanism to pickup trucks and delivery vans, but omitting the very popular 2-mile delivery method.
levocardia 1 day ago|||
Also this argument is easily refuted by the US Postal Service, which physically delivers individual pieces of paper in a few days, for pennies.
nerdsniper 1 day ago|||
Right but that’s a government service and it should be totally fine for them to deliver mail below cost using taxpayer money to make up the deficit.

Like every other government service - highways, defense, etc. They’re profitable to the system, but not per se.

mmooss 1 day ago||
The US Post Office is funded by its own revenue, I'm pretty sure.
thallium205 1 day ago||
It still enjoys many government mandated monopolistic advantages.

See: American Letter Mail Company.

ButlerianJihad 1 day ago||||
USPS is fueled by parcel deliveries, but also in large part by literal tons of junk mail on dead trees; spammers have paid Uncle Sam handsomely to spam every citizen's mailbox for decades, and it's the most lucrative thing USPS can do with our home mailboxes.
GauntletWizard 1 day ago|||
The postal service is a quasi government entity that has operated (not to get too deep into the politics of it) for many years at a loss. It does compete with Amazon, as well as being used by Amazon, but it's very different as a business than Amazon.
sourdecor 1 day ago||
I got this when I told Gemini "post office loss retirement prepaid" because of other articles I have read that I cannot remember.

"In 2006, Congress passed the Postal Accountability and Enhancement Act (PAEA). This law forced the USPS to do something virtually no other government agency or private corporation has to do: prefund its retiree healthcare benefits 75 years into the future[0]. Essentially, they were legally required to fast-track billions of dollars into a fund to pay for the future retirement health benefits of current employees, and theoretically even future employees who hadn't been hired yet."

[0]: https://apwu.org/the-usps-fairness-act/

socalgal2 1 day ago|||
There's also the externalities. Costco effectively supports car infested surburbia which lots of people blame for a great many problems.
frollogaston 1 day ago|||
I would expect Amazon to be more efficient. Besides the round trips, there's operating the store, putting items on display, all that. As I said above, Amazon and Costco don't compete so directly though, like you aren't buying a pie from Amazon.
mc32 1 day ago||
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.

nemomarx 1 day ago|||
I've always wondered why I don't see passed on savings for the "amazon day" thing. It's gotta be way better for their logistics to deliver bulk orders, or pick a standardized delivery day for each neighborhood or something. Why do they only offer a single dollar of credit for choosing it?
socalgal2 1 day ago|||
I don’t know how much they are saving. On the one hand they save a stop (they aren’t saving a van as there are likely already vans delivering near by). on the other they have to hold on to stock longer waiting for things to all be ready. It costs money to store things
avarun 1 day ago|||
I get 6% back instead of 5% with my Amazon card which is more than enough to incentivize me in many situations.
mmooss 1 day ago|||
I was zeroing out the amount purchased: The comparison is the customer picks up one item vs. Amazon delivers one item, or the customer picks up 12 or 20 things vs. Amazon delivers the same amount.

I'd still love to see data.

The problem with environmental impact is really a consequence of subsidized energy costs, including the externalization of environmental cost. If the consumer and Amazon paid the actual cost of fuel, they would make valid economic and environmental choices and we wouldn't need to figure it out like this.

moomoo11 16 hours ago|
130+ iq move is to order daily stuff from amazon, and same day costco delivery when you need stuff in bulk
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