Better Buy: Amazon vs. Costco
Amazon (NASDAQ: AMZN) and Costco (NASDAQ: COST) have become two of the most influential retailers today. Amazon's growth has stoked fear across the retail sector. Yet despite that success, Costco has prospered amid the Amazon onslaught, continuing to increase both net sales and membership each year over the last five years.
However, these companies have succeeded by taking two completely different paths. Amazon has built an e-commerce empire spanning North America and much of the world. It can offer seemingly any item and ship most of its merchandise in a short amount of time. Still, even with Whole Foods and some Amazon-branded stores, it offers little to those who want or need to shop in a physical store.
Costco has built its following through physical locations. This allows Costco to provide both in-person and online shopping options. However, it sells only a limited number of items. Also, the company offers somewhat fewer options for fast shipping.
Source Fool.com
