Everybody, including Costco, is chasing Amazon, which accounts for 45% of all U.S. e-commerce sales, according to JPMorgan in a research note Monday.
While unlikely to compete at the level of Amazon or Walmart online in the near future, Costco could carve out a lucrative e-commerce lane with its loyal, value-orientated customers.
Engaged members want to spend more online at Costco "given the value/quality and cash back," the analysts added.
Costco has an "incredible opportunity to better target customers and leverage its rich database of perfect data and is still in its early innings" of e-commerce, JPMorgan said.
Adding to the e-commerce story, JPMorgan cited the Costco Logistics network, which has amped up "e-commerce fulfillment of bulky items."
Persons:
Jim Cramer, Morgan Stanley, Gary Millerchip, Instacart, Jim Cramer's, Jim, John Keeble
Organizations:
Costco, JPMorgan, Walmart, Amazon, Target, Kroger, Costco Logistics, Logistics, CNBC, Lakeside, Getty
Locations:
Grays, United Kingdom