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FreightFlow Chronicles

Costco is expanding e-commerce on 3 fronts

Costco is significantly expanding its e-commerce operations, which has led to notable growth in online sales. During the fiscal third quarter, Costco saw a 20.7% increase in e-commerce sales, driven by the popularity of products like gold and silver bullion, gift cards, and appliances. The company also reported a rise in app downloads by 32% and an increase in site traffic by 16% compared to the previous year​.


The company is enhancing its digital presence through several initiatives. One major move is the expansion of Costco Next, a curated marketplace that features products from select suppliers. This marketplace now includes 75 vendors, offering members discounted prices on various items. Additionally, Costco is increasing the number of warehouses with pickup lockers from 112 to over 200, improving convenience for customers who prefer to collect online orders in-store​​.


Partnerships also play a key role in Costco's strategy. The company has expanded its collaboration with Uber, enabling grocery deliveries through Uber Eats across Canada and 17 U.S. states, with plans to extend this service to other international markets. Costco will also offer Uber gift cards and discounted Uber One memberships to its customers​.


These efforts are part of a broader strategy to boost e-commerce, which currently accounts for 8% to 9% of Costco's total sales. As the company continues to invest in digital infrastructure and customer convenience, it aims to maintain its competitive edge and drive further growth in the e-commerce sector​.



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