Costco Wholesale Corporation operates international membership warehouses that sell brand name merchandise at lower prices than traditional retailers. It began in 1983 and has grown to over 600 warehouses worldwide. Costco warehouses offer a wide selection of products across numerous categories to members. Members can purchase quality private label Kirkland Signature brand products. Costco is able to offer low prices by eliminating costs like sales staff and luxury buildings. It has two types of memberships available. E-commerce has significantly impacted retail industries by reducing consumer search costs and shifting market shares towards larger retailers. Costco has adapted to e-commerce by offering convenient payment options like cash cards to remain competitive.

1. Company Overview
Costco Wholesale Corporation operates an international chain of membership warehouses,
under the title "Costco Wholesale" name that carry quality, brand name merchandise at prices
much lower than normally found in wholesale or retail sources traditional. The warehouses
are designed to help small businesses and medium-sized enterprises in reducing purchasing
costs for resale to use and daily business. Individuals may also purchase for their personal
needs.
Costco Wholesale Company began operations in 1983 in Seattle, Washington. In October
1993, the company merged with Costco prices, which may be a leader in the membership
warehouse concept in 1976, to form Price / Costco, Inc., a Delaware company. In January
1997, has been spun assets warehouse off the price of companies, company, and the company
changed its name to Costco Companies, Inc. on August 30, 1999, the Corporation
reintegration of Delaware to Washington and changed its name to Costco wholesale
company, which trades on NASDAQ under the symbol "cost". The office is located in the
home Costco Isakoh, Washington.
Costco warehouses in providing one of the largest and most prestigious product category
selections to be found under one roof. Categories include groceries, sweets, home appliances,
television and media, automotive supplies, tires, toys, hardware, sporting goods, jewellery,
watches, cameras, books, housewares, apparel, health and beauty Aids, tobacco, furniture,
office supplies and office equipment. Costco is known for carrying top quality national
brands and regional prices down without outlets traditional wholesale or retail.
Members can also buy products private label Kirkland Signature, is designed to be a quality
equal to or better than national brands, including juice, biscuits, coffee, tires and household
items, luggage, tools, clothing and household detergents.
According to Jim Senegal, the company co-founder and director, "Costco is able to offer the
lowest prices and values better by eliminating virtually all the frills and costs historically
associated with wholesalers and traditional retailers, including sales, buildings, luxury,
delivery, billing and accounts receivable. We run a tight operation with extremely low
overhead which enables us to pass on significant savings to our members. "
Costco offers two types of membership: Business and Gold Star. Business members qualify
by owning or operating a business in while the membership Alnujoma went available to
individuals. All members get a free additional card.
Costco warehouses are open seven days a week to all members

2. E-Commerce
http://www.google.com.au/search?hl=en&site=imghp
Introduction
E-commerce, also known as e-commerce, e-commerce, e-commerce or e-
comm, refers to the buying and selling of products or services over electronic
systems such as the Internet and other computer networks. E-commerce is based on
techniques such as electronic funds transfer, supply chain management, Internet
marketing, and online transaction processing, electronic data interchange (EDI),
inventory management systems, and operating systems and automated data
collection. Modern electronic commerce typically uses the World Wide Web at least
at one point in the life cycle of the transaction, although it could include a wide range
of technologies such as e-mail, mobile devices and phones as well. E-
commerce generally considered to be the sales aspect of e-commerce. It also
consists of the exchange of data to facilitate the financing and payment aspects of
business transactions
Types of E-Commerce
1. Business to Business (B2B)
Business-to-business (B2B) defines commerce transactions between businesses to
business, like between a wholesaler and a manufacture and in between wholesaler and
a retailer. In short we can say that doing business from one business to other business
2. Business to Customer (B2C)

3. The business which is done done directly from business to the customer is call
business to Customer, like dell company directly deals with the customer for selling
purpose.
3. Consumer to Consumer (C2C)
It is the simple and easy process of doing business, it means doing business in
between customer to customer, example ebay.
Advantages and Disadvantages of E-commerce
Advantages:
 Lower cost
 Economy
 Higher Margins
 Better Customer Service
 Productivity gain
 Team works
 Information Sharing, Convenience, And Control
Disadvantages
 Security
 System and Data Integrity
 System Scalability
 E–commerce Is Not Free
 Consumer Search Is Not Efficient or Cost–effective
 Customer Relations Problems
 Products People won't buy online
 Corporate Vulnerability
Application of E-Commerce in Business
Various e-commerce applications that always affect trends and prospects for business over
the Internet, including e-mail, and - waste electronic and online publishing / online retailing.
A electronic banking environment more sophisticated and mature plays an important role in
the economy through the promotion of e-transformation of the traditional methods of
payment to electronic alternatives, thereby closing the e-commerce loop.
E-commerce and the Market Arrangement of Retail Industries in today’s world.
The fast-growing body of research has looked at how the emergence and spread of e-
commerce prices, has achieved much lower than the business impact of electronic commerce

4. on the number and type of producers working in the industry. This paper theoretically and
empirically take up the question of which companies the most useful and most suffer as
consumers shift to buying products online. We can determine the general industry model
involving consumers with differing search costs to purchase products from non-homogeneous
type producers. We interpret e-commerce presence of search costs reduce consumers. And
show us how to re-allocate these reductions market shares of the type of industry producers to
low business-type high. We tested the model using data from the United States for a period of
three e-commerce industries that have fallen can say consumer search costs to a large extent:
Travel agencies, libraries, and new car dealers. Exhibits every industry market share shifts
predicted by the model. Interestingly, while industries experienced similar changes, and the
specific mechanisms by which e-commerce push they differed. Libraries and car dealers, and
reflected the industry-wide decline in small outlets specific effects in the market, evidenced
by the fact that more out small store occurred in the local markets where consumer use of e-
commerce channels grew faster. Travel agencies, on the other hand, reflects the overall
changes shifts driven by the airlines cut agent commissions, which consumers buy tickets
online. (.nber.org/papers)
E-commerce affection on Costco.
Costco is famous for turning the experience of grocery shopping on an adventure. Costco,
one of the three major national retail chain stores and the largest membership in the world,
has prospered by turning convention on its head. The company never advertises, charges its
64 million members to shop there and does not mark a more than 15 percent. It's a business
model that works, generating $ 93 billion in annual sales.
Correspondent Carl Quintanilla shows how Costco has grown to 600 stores, attracting loyal
customers and rich. They return repeatedly for the thrill of the treasure hunt constantly
changing inventory, like diamond rings, meat, wedding dresses and coffins. This CNBC
Original documentary also explores an "effect Costco," the habitual tendency of its members
to succumb to discount-chic appeal of the store and spend more than they expect, often
buying more than they need( CNBC)

5. Return on Investment
COSTCO WHOLESALE CORPORATION(COST)
Other
Ticker:
Sector • Retail Industry• Specialty Retail
Costco Wholesale's ROI per quarter
Return on Investment, Quarterly Results, Trends, Rankings, Statistics
COST Company Profile >>Back to COST Roi Comparisons >>See Annual COST Return On Investment
Return On Investment
(Feb. 26, 2013)
II. Quarter
(Nov. 30, 2012)
I. Quarter
(Aug. 31, 2012)
IV. Quarter
(May 30, 2012)
III. Quarter
(Feb. 26, 2012)
II. Quarter
Y / Y Investment Change 6.24 % 3.37 % 7.62 % 5.29 % -
Y / Y Net Income Change 34.47 % 28.35 % 24.4 % 18.77 % 11.65 %
Return On Investment (TTM) 13 % 12.27 % 11.75 % 11.14 % 10.84 %
COST's Overall Ranking # 76 # 131 # 148 # 170 # 190
Seq. Investment Change 5.64 % 2.07 % -3.81 % 2.44 % 2.78 %
Seq. Net Income Change 31.59 % -32.32 % 53.58 % -1.7 % 25.61 %
(ROI): users and taking into account the motivation to visit the sites and presents us with
solutions assessments to increase participation and revenues. GPS system, images and colors
are just some of the ingredients have large companies that can affect the way consumers
navigate the site. The main reason why we have an online store is to make money, and so we
need to make sure that any investment we make in our online e-commerce pays return. As is
the case in the online store Woolworth and takes the benefits of the consumer through the
website and e-commerce. Provide evidence of online shopping is a great way to encourage
buyers on the Internet also to return to your site for repeat purchases.
 Increased competitive advantage:
Costco strategy for competitive advantage is the combination of low-cost provider and
differentiation. Costco strives to overcome the pricing competition, they also provide

6. exceptional value in it's high-end offerings, and customer service. Give consumers more for
their money. There are two type of membership you can subscribe to in Costco, regular
membership and executive membership. With the Executive membership, Costco gives 2%
bonus on the annual Costco purchases. Elements of Costco's strategy is to lower prices,
limited product lines and selection, shopping environment treasure hunt.
Costco is known to treat their customers with excellent service, but on the other hand they
treat their staff is excellent, as well. They believe that they have the best employees in the
warehouse club industry, and they are committed to providing them with rewarding
challenges and opportunities for personal and professional growth. They offer competitive
remuneration, great benefits, and work environment safe and healthy, and also when it comes
to promotions to management positions and others because they believe in promoting within
the company because there is no one else who will understand the company and one who has
already used there. Costco has to compete with companies such as Wal-Mart, Sam's Club, but
what distinguishes this Costco of these companies there are ethics they seek to follow up
before. Costco offers many things throughout the company to keep its customers return.
Costco offers free samples throughout the store, and also a dining hall, and on some websites
that provide car wash or gas station to its members. Costco will continue to dominate the
wholesale as long as they continue to do what has been done for years
 provide customer convenience:Costco has created another convenient way for members to
pay for their purchases: Costco Cash card.
You must be a member of Costco to buy or download Costco cash cards. Permissible for
members and non-members to use cash cards to shop at Costco anywhere in the United
States, Canada and Puerto Rico and online at Costco.com or at Costco.ca. And cash balances
can be used toward membership or Costco goods.
Costco Cash card features the following:
• suitable payment option in our warehouses, gas stations, and costco.com
• No expiration date
• Are rechargeable at any Costco warehouse location
• can be purchased in denominations of $ 25 to $ 1,000
• display card or gas card companies
• a way to provide students with money to buy food, gas, or school and dormitory necessities,
while being able to reduce spendingCan be accessed • Balance on costco.com, and warehouse
"red kiosk" or by calling toll-free number on the back of the card

7.  respond to the demands of suppliers or customers:
Costco is a member of the Retail Industry Leaders Association (RILA), one of the country's
largest trade organizations. RILA is engaged in a massive effort to impose "sustainability"
standards on member companies and suppliers that require these companies to undertake
expensive capital expenditures, restrict the use of the property they own and even to lobby
local governments for more restrictive building codes.
RILA also requires member businesses to follow a top-down sustainability plan that will
adversely affect manufacturers and suppliers. This aspect of RILA's sustainability scheme is
likely to entail costly changes to manufacturing standards that will impede small businesses
and raise the cost of consumer products
Streamline Operations: Costco is a member of the Association of Retail Industry Leaders
(RILA), one of the largest business organizations in the country. RILA is engaged in
intensive efforts to impose standards of "sustainability" to member companies and suppliers
that require these companies to do expensive capital expenditures, and restrict the use of
property they own and even to put pressure on local governments to more restrictive building
codes.
RILA also requires member companies to follow the sustainability plan from top to bottom
that would adversely affect the manufacturers and suppliers. This aspect of RILA
sustainability system is likely to involve costly changes to manufacturing standards that
would hamper small businesses and raise the cost of consumer products
Retail industry future in E-commerce
The retail industry is changing more than ever. E-commerce has been disrupted in the form of
bricks and mortar used for hundreds of years. Consumers have more options than ever before
and will only spend their money on the best choice.
To keep up, retailers need to be vigilant through the channels and give customers many
options to buy products. They also need to deal with customers through social media.
We explain how the industry is changing by using graphs and data.
At present customers are satisfied as to the safety of online shopping in most cases and for
most, the Internet and is often the first port of call for the purchase of all kinds of bargains.
Online retailers successful working hard to produce a unique shopping experience of its kind
to increase sales, but also increases the chances of online shoppers come back to buy again.
People buying online is likely to double year after year. In the next few years is likely to
change the world and the world of marketing, in particular e-commerce.
Once properly planned, could online shopping sites deliver an excellent return on investment,
which eventually exceeds the investment significantly. Online retailers successful working
hard to produce a unique shopping experience of its kind to increase sales, but also increases

8. the chances of online shoppers come back to buy again. Can invest in the right technology
affect the business positively through improved operational efficiency, increase profitability,
and happier customers and provide a competitive advantage.
E-commerce Conclusion
The most wonderful thing about e-commerce is the sheer size of the opportunities and how
quickly this has developed industry.Again in the dinosaur ages of the Internet (1994), there
was no such thing as credit card transactions in real time. In those days, you had to make your
purchase over the phone or via e-mail and your request will be processed offline.Thankfully
times have changed.Instead of sending checks over another, customers can now make instant
payments and companies can get the money almost immediately.. Electronic commerce is
alive, well and very rapid growth to double-digit rates, achieving extraordinary changes in
markets, industries, individual firms and society as a whole. With a single click you can buy
anything from online, and we can say that is an example of the new technologies in
enterprises. E-commerce and the Internet is a topic of increasing research, trial, and
legislation. The XXI century will be the age of digital form and extend extra ordinary
opportunities and risks of new and traditional businesses to exploit digital technology to the
market advantage.However, even through the technology has advanced rapidly, and the basic
rules for e-commerce is still the same.
Report conclusion
Techniques make it possible for online merchants to reach their customers preferences
significantly with more accurate than physical stores or catalog merchants. One of the key
factors in achieving a retail organization and effective is the use of technology as an enabling
tool. Information technology is to enable the key to improving customer satisfaction and
operational efficiency and profitability extension. On one thing all the experts agreed that we
have. There will be more options for consumers, and could be the possibility of linking
suppliers to end-consumers with a strong chain of information leading to improvements and
better response times in retail entertained by businessmen. The twenty-first century will be an
era of digitally withstand exceptional opportunities for risk, as well as new and traditional
businesses to exploit digital technology to market advantage. For society as a whole, few
decades a new offer the possibility of achieving extraordinary gains in social wealth that offer
the possibility of higher rates of productivity and income growth in inflation-free
environment.

9. http://www.nber.org/papers/w14166
http://www.cnbc.com/id/46603589