The number of members increased by 113 million! Costco has established a firm foothold in the US e-commerce market!

It is learned that according to foreign media reports, during the epidemic, Costco successfully gained 113 million new members and occupied an important position in the US e-commerce market.

It is reported that Costco has gained a firm foothold in the US market with the following development strategies:

1. Adequate product inventory

As global supply chain issues worsen, Costco rents private boats to deliver goods to keep shelves stocked, able to provide inventory for more than 800 stores nationwide, with annual sales of $200 billion.

2. Low product price

Costco is loved by consumers for its high-quality products and low prices. It won the first place in Forbes' first "Halo 100" list (which specifically selects which retailers are the most popular), successfully surpassing other large retailers such as Amazon and Walmart.

3. Fewer product types

Costco sells about 4,000 items, while other retailers may offer tens or hundreds of thousands of items. Costco pursues "fineness" rather than "quantity".

4. High customer loyalty

The annual fee for Costco membership is $60, but its membership renewal rate is over 90%, customer churn is very low, and as the number of new members continues to increase, it is rapidly occupying an important position in retail.

5. High employee benefits

Costco employees start at $16 per hour, higher than Walmart's $12 and Target's $15, and will also increase wages for processing workers. In addition, the number of employees with more than 5 years of service or more accounts for more than 60% of the total.

It is learned that although Costco's online business has developed slowly, it has been increasing its investment in e-commerce. Charlie Munger, an industry investor, commented that Costco will eventually become a leading Internet player and will have enough strength to compete with Amazon.

Editor ✎ Nicole/

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