Charlie Munger is optimistic: Costco has the potential to become the next global e-commerce giant

According to Insider, Warren Buffett's right-hand man Charlie Munger said in a speech at the annual meeting on Wednesday that although Costco has been slow to enter the e-commerce field, it has the ability to become the next global e-commerce giant.

Charlie Munger said that Costco's products have a very good reputation among its consumers, and despite having a limited variety of products, its annual sales are very large.

When it comes to online sales, the advantage of offering products that customers already know and trust is that consumers can feel more confident purchasing these items online without having to go to a store to verify them, such as Costco's popular and successful private label line Kirkland Signature.

At the same time, a limited product variety will also give Costco an advantage in developing its e-commerce business because it simplifies logistics and delivery processes.

Charlie Munger continued, “I wish every other retailer in America was doing as well as Costco, and think about what a positive thing that would be for all of us.”

Costco, which has only a handful of products on its shopping site so far, offers two-day delivery on essentials like groceries and cleaning products as well as same-day delivery in most U.S. cities through a partnership with delivery company Instacart.

But Costco's e-commerce sales are growing rapidly. Its e-commerce sales in fiscal 2021 increased 44% compared with the same period last year.

Despite its limited e-commerce presence, Costco is one of the strongest brick-and-mortar retailers in the U.S. and one of the most valuable stocks in the sector. It still competes with Amazon thanks to its membership model and lures customers back to its stores by offering deals, discounts and perks like cheap gas and vacations.

Editor ✎ Xiao Zhu/

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