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Daily Mail
2 days ago
- Business
- Daily Mail
Costco rolls out new perk to help shoppers beat crowds… but there's a catch
Costco is introducing a new perk that will allow certain members to have their own private shopping hours. Executive tier members will be able to shop for an hour earlier than regular Gold Star members from June 30. The big box retailer will now allow its top tier members, who pay $130 a year, to shop from 9am to 10am on weekdays and Sundays, and 9am to 9:30am on Saturdays. 'Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco,' the company told employees in an email seen by Business Insider. The retail giant said that the top tier members would also start receiving a $10 monthly credit for Instacart orders, as well as $150 worth of other benefits and savings on Costco services. Around half of Costco shoppers have Executive level memberships, but they account for 73 percent of sales, according to the company. The top level also offers a 2 percent rebate on all Costco purchases made that year up to a total of $750. Costco hopes the new shopping hours will reduce traffic in car parks and lines at checkouts, which is a key customer complaint. However, it is also a move that could boost membership fee revenue, a key driver of Costco's bottom line. Last year Costco brought in more than $4 billion a year from membership fees alone, after upping its rates in September. As well as access to discounted groceries and electronics, Costco membership also gives shoppers access to services such as hearing tests and home insurance. It is not yet clear whether the new shopping times will include these extra services. It comes after Costco also expanded its gas station hours and added more pumps. The retailer's gas stations are now open from 6am until 10pm on weekdays. On Saturday and Sunday, Costco gas stations now open at 6am and close at 8:30pm and 7:30pm, respectively. The wholesale giant originally closed it 60 gas stations at 9pm but decided to extend its hours further, much to the delight of its loyal customers. Costco members are delighted that gas stations are now open an hour later Costco has built a reputation for consistently offering gas prices below market averages, leading to the familiar sight of vehicle queues at Costco pumps across the country. Fuel sales made up around 12 percent of the Costco's total sales last year, and its cheap gas and accessible stations are a key incentive for memberships. Costco hiked its membership rates back in September last year, taking its standard Gold level membership from $60 to $65 and its Executive level by $10 to $130 a year. It was the first time the retailer had upped its membership fees since June 2017. The retail giant currently has around 52 million members in the US and Canada.
Telegraph
7 days ago
- Business
- Telegraph
Amazon to ban fake reviewers and punish sellers that cheat system
Amazon has vowed to ban users who post fake reviews and punish companies that cheat its rating system after a UK crackdown on the practice. The retail giant has told regulators it will block businesses from selling on its website if they are found to have boosted their star ratings via bogus reviews. It will also take action against users who post the false reviews. Amazon said it would enhance its existing systems for tackling the problem, including instances where reviews of highly rated products are hijacked and added to separate items. Amazon has been investing heavily in clamping down on fake star ratings, using expert investigators to spot bogus reviews. It is also using artificial intelligence (AI) to track how many reviews an account is posting and their sign-in activity to identify potential fraudsters. The company said it blocked more than 275m fake reviews last year. The tech giant told the Competition and Markets Authority (CMA) that it was committed to tackling fake reviews. Sarah Cardell, the chief executive of the regulator, said it meant 'people can make decisions with greater confidence – knowing that those who seek to pull the wool over their eyes will be swiftly dealt with'. She said the CMA would consider further action if shoppers did not see real change. Around 90pc of consumers use reviews to make decisions on what to buy online. Official figures have previously suggested that at least one in 10 of all product reviews on websites used by third-party sellers are likely to be fake. A large proportion are written by bots. However, in some instances sellers 'merge' listings for new products with older and more popular items in order to acquire their review history. In 2019, a study by Which? found that reviews for a soap dispenser and a phone screen cover were listed under a pair of headphones. In a report by the Department for Business and Trade from 2023, officials said 'the presence of well-written 'subtle' fake reviews leads to a statistically significant increase in the proportion of consumers buying the product with these fake reviews'. The Amazon pledges come months after new laws came into force that make online retailers liable for false reviews on their websites. Since April, companies have been legally required to take steps to prevent and remove the publication of fake reviews. The work is being overseen by the CMA, whose interim chairman, Doug Gurr, is the former UK boss of Amazon. He was appointed last year amid a push by ministers to ensure regulators 'tear down the barriers hindering business and refocus their efforts on promoting growth'. Researchers have warned that the rise of AI threatens to lead to more fake reviews. Amazon claims that more than 99pc of all products in its store contain only authentic reviews. A spokesman for Amazon said: 'Ever since we introduced reviews in 1995 we have continued to innovate and work constructively with regulators around the world, including the CMA, to help customers share feedback that is relevant, helpful and trustworthy, in both Amazon's store and across the industry.'
