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It's interesting to contrast between Amazon and Costco strategy as far as the store brands go. Costco has 1 store brand, Kirkland, that they are open about and
by yumraj 7y ago
It's interesting to contrast between Amazon and Costco strategy as far as the store brands go.
Costco has 1 store brand, Kirkland, that they are open about and in fact push it as a equal/better brand.
Amazon on the other hand has the Amazon Basics as an economy brand but also have these numerous hidden brands.
- arien 7y agoI'm guessing it's some kind of A/B testing done by Amazon. Do people trust in the Amazon brand, or do they rather buy from unknown brands that offer cheap but decent quality (compared to the cheap and poor quality counterparts that flood the site)? Each brand is probably there to answer a specific question (or set of).
- Sherl 7y agoI think Costco is built on baby boomers and it become a cult to spend time in warehouse, walking through huge aisles, discovering those treasures and samples. Amazon on other hand needs economies of scale by constantly sending you notifications or keeping track of your habits. Costco also uses the same strategy to comeup with products. I used to see GT Kombucha and now costco has their own line of Kombucha as well. This is similar to Amazon where you observe the products at someones cost and make it inhouse if its viable. Another fact with Costco the costs being low is the businesses that sell at costco can only have as much as 20% of their total revenue from Costco -- which is like paying only for the variable cost as the rest 80% of revenue would absorb that fixed costs in supply chain. This is a huge bonus.