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How Costco's curation philosophy applies to the internet and digital platforms

By

JA Westenberg

3d ago· 15 min readenInsight

Summary

This article draws a parallel between Costco's retail philosophy—curating a limited selection of high-quality products at good value (the "intelligent loss of sales" pioneered by Sol Price and Jim Sinegal)—and how the internet and digital platforms could benefit from similar curation and constraint. It explores how abundance of choice online creates friction, and argues that platforms, services, and content creators might improve user experience by deliberately limiting options, focusing on quality over quantity, and accepting the loss of some users in exchange for serving others better.

Key quotes

· 3 pulled
Price called it the intelligent loss of sales: carry one good version of a thing, refuse the other nine, and eat the customers you lose in exchange for the trouble you save everyone else.
A Costco warehouse stocks around 4,000 items. A Walmart Supercenter stocks more than 100,000.
The internet has given us everything, and in doing so, it has given us nothing but the burden of choosing.
Snippet from the RSS feed
At FedMart, the discount chain Sol Price built in 1950s San Diego, you could buy a can of WD-40 in one size, the big one, and that was the end of the conversation. Anyone who wanted the small can went without. Price called it the intelligent loss of sales

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