Business Strategy · Business model

Does the Costco membership business model work in eCommerce?

Elian Dupre student, founder of various small businesses

February 11th, 2018

I'm talking about using a membership to help lower overall prices of your products - which members are buying. Has this ever been applied online? Does it work?

Dane Madsen Organizational and Operational Strategy Consultant

February 11th, 2018

Amazon Prime, Netflix, Pandora - while the last two are different, they are applicable. WalMart tried an Amazon Prime-type program called ShippingPass and killed it fairly quickly.

Trigg Hutchinson Military turned MBA, dedicated to disaster relief

February 11th, 2018

Thrive Market uses that exact model and has done very well.

Majji DME healthcare, analytics, ecommerce

February 11th, 2018

Amazon Prime works just fine.

Patrick Colmenar Development Manager at LDProducts

February 11th, 2018

It's been tried before with jet.com. Their original model was to be the costco of online world. They had to eventually drop their membership fees. Boxed.com operates in this space, but again no membership fees.

Steven Cheung

February 12th, 2018

There are companies that sells stuff online based on a monthly subscriber business model so even though it's not the same as Costco you do have to sign up as a member first.