Question
Costco offers a Costco Direct option which is branded with a tag line - Passing our shipping savings to you. Here they offer quantity discounts
Costco offers a "Costco Direct" option which is branded with a tag line - "Passing our shipping savings to you." Here they offer quantity discounts for buying multiple items. See the following link -
https://www.costco.com/CatalogSearch?dept=All&keyword=costco+directLinks to an external site.
Discuss (a) What are the size and price of items included in this option, (b) Do you think the savings in direct shipping costs of multiple items are commensurate with the discounts being offered? (c) Can all these items be offered through Costco's retail stores? (d) What role do excess inventory and reduced facility cost play in these discounts?
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