The Investing for Beginners Podcast - Your Path to Financial Freedom Comparing the Biggest Retailers: Costco vs Amazon vs Walmart
Apr 14, 2025
Delve into the competitive world of retail giants with a focus on Amazon, Costco, and Walmart. Discover how Amazon leverages diverse revenue streams and subscription models, while Costco thrives on its membership-driven, low-margin strategy. Dive into Walmart's extensive reach and cost-cutting operations. The discussion covers growth trajectories, potential risks, and strategic insights, making it a must-listen for budding investors eager to navigate the retail landscape.
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Dominant Retail Growth Drivers
- Amazon, Costco, and Walmart are driving all growth in U.S. retail sales, while other retailers remain flat.
- Their scale, platform advantages, and multi-channel presence create strong competitive moats.
Amazon's Massive Retail Revenue
- Amazon's retail revenue in 2024 is about $424 billion, including online stores, third-party seller services, and physical stores.
- Third-party seller services revenue is a high-margin cut from facilitating sales, contributing significantly to Amazon's scale.
Amazon Prime's Revenue Impact
- Amazon Prime's subscription service generates $44 billion in revenue and drives customer loyalty.
- Prime supports convenience and recurring sales, enhancing profitability beyond direct retail transactions.