How Costco Actually Makes Money | Costco’s Business Model Explained

With over 114 million loyal members worldwide, Costco is the world's second-largest retailer behind Walmart. But in the age of Amazon, what makes Costco so successful?

In this video, I look at Costco’s journey since its early days and how it uses its “members only” strategy, innovative inventory management, the in-house label Kirkland Signature, and customer service excellence to beat the competition and become the big winner in retail.

Chapters:
00:00 Introduction
01:11 Costco’s Origins
03:00 What Defines Costco
03:50 The Magic of Membership
05:25 Low Pricing
07:13 Smart Inventory Management
08:48 Membership Services
09:20 Kirkland Signature
10:10 Customer Service

Topics Covered:

How Costco Actually Makes Money, Costco’s Business Model Explained, How Costco Gets You To Spend, Why Costco Works, Why Costco Is So Successful, Costco Business Model., How Costco Became A Massive Members Only Retailer, The Rise Of Costco

[businessboss]

Please like and subscribe to the channel. It helps more than you know! Thank you!

[blakejackson]

Good information! I've been sharing a family membership for years. Upon watching your video I think I'll purchase my own!
Great job,
JBJ/CT

[MindCrime]

i'd like to add that Costco is a very good employer relative to the rest of the industry. Everyone that shops at Costco has noticed that well-educated people are happily checking groceries at Costco.
When you pay people well you raise the bar of who is willing to work for you. When better workers work for you that instills a culture of quality, it lowers costs (insurance, bad orders, damaged products, customer service) edit: I guess he got to that. I was writing this comment when there were just the original 3 pillars of the business model part of the video.

[lokeyfunny]

Great video :) keep up the good work. You're going to be big very soon. I'd suggest you do some shorts as well to increase your reach.

[jbounds]

I would say most jobs have pto now a days