Costco is the anti-Amazon(phenomenalworld.org)
442 points by bookofjoe 22 hours ago | 407 comments
tl;dr: Costco's business model—limited SKUs (~4,000 vs. Walmart's 130,000), in-person bulk shopping, and minimal distribution infrastructure—is more logistically efficient and socially beneficial than Amazon's infinite-assortment, home-delivery approach, resulting in lower overhead, higher wages, and just 6% employee turnover. The author argues this constraint-based model is more generalizable than Amazon's, which relies on complex last-mile delivery that isn't universally scalable. The piece concludes that NYC Mayor Mamdani's proposed public grocery stores should adopt Costco's playbook: low SKU count, high volume, centralized distribution at sufficient scale, and a signature loss-leader item.
HN Discussion:
  • Costco's approach of avoiding the last-mile problem exemplifies wise engineering by sidestepping complexity
  • Costco represents American excellence and is admirable as a national achievement
  • The article overlooks that Costco offers delivery via Instacart, undermining the strict in-person contrast
  • Costco caters to affluent suburbanites with big vehicles and storage, limiting its generalizability
  • ~Costco isn't really competing with Amazon since they sell different categories, weakening the comparison