This is how Costco, Sam's Club and BJ's won in the 1:03 pandemic
New York (CNN Business) -
Costco is looking for ways to make the $ 60 fee for an annual membership worth more to online shoppers, and thus keep them away from Amazon.
So you're expanding an online benefit that was only available to club members - buying things from the websites of about 35 brands and saving 20% or more.
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The program, called Costco Next, first launched in 2017 with just a few brands.
But Costco has recently improved it, offering a variety of products like Anker phone chargers, Mikasa dinnerware, weatherproof outdoor clothing, Invicta watches, HO Sports floats and tubes, and Sumbody skincare products.
Costco now advertises the program prominently on its website and plans to add more brands and products next year.
The strategy
Costco has hooked its more than 60 million members with $ 400 tourable stores where they can spend $ 400 on Saturday afternoons.
But e-commerce accounts for only a small percentage of Costco's sales, and its online business has slowed this year after increasing in 2020.
The retailer hopes that online product discounts will give customers another reason to renew their memberships and give them a sign that Costco is more than just a brick-and-mortar store.
advertising
The program, Costco says on its website, helps you bring in new products "while increasing the value" of a Costco membership.
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Costco reduces options for its members in stores, primarily stocking the best-selling items that it believes offer the most value to its customers, and is taking a similar approach with this program.
Select items
Rather than offering thousands of products from hundreds of brands, Costco is choosing select items.
The retailer says they are popular products from brands that are often in limited supply.
Costco is applying other lessons from its success in stores, where it frequently markets and adds new items to try to keep customers coming back and seeing what's new.
He's also trying to create a similar scavenger hunt experience with his online initiative: "Costco Next is continually evolving, frequently adding new brands," the website says.
"Find out what's new".
Costco members can purchase products directly from brand sites and use their membership number - no coupons or promotions - to save on purchases.
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