Remix.run Logo
Backslasher 6 hours ago

The part about Costco choosing to avoid the last mile shipping problem reminded me of a proverb, roughly translated as:

A clever person solves a problem; a wise person avoids it.

I think it holds a lot of truth in engineering.

mgfist 6 hours ago | parent | next [-]

Both spectrums are hard. Solving last mile is really really hard, but if you do that's a huge moat (aka Amazon). If you avoid last mile, you best deliver value in some other way, which Costco does by giving you more per dollar than anyone else.

steve_adams_86 6 hours ago | parent [-]

They also offer some degree of curation, so your dollar goes further by volume/weight/unit on average, but also in less quantitative ways quite often. I trust what I buy from Costco, but I’ve completely stopped buying from Amazon (many years ago now) because apart from the poor value prop, I simply don’t like the quality or reliability of what’s offered.

mullingitover 6 hours ago | parent [-]

Amazon largely being a dumb marketplace, a faster-shipping AliExpress/Temu, really makes them easy to drop if you find that shipping speed isn’t super important for those types of products. You can just go straight to the source and cut Amazon out entirely.

whatever1 5 hours ago | parent | next [-]

It’s not only a faster Temu for e-junk. It can also deliver your paper wipes and bananas in the same order.

Could you just place 3 different orders to 3 different vendors? Sure.

Could you just drive to the grocery for 2 bananas and then to Costco for the big discounted paper wipes? Sure.

But likely you will not. Which is why Amazon pulls a Trillion in revenue.

elictronic 5 hours ago | parent | next [-]

When some of your products are fraudulent all your products are fraudulent. Amazon has zero trust from me these days. It’s the equivalent of an overpriced garage sale.

satvikpendem 4 hours ago | parent [-]

You do you, I and most others don't have issues, hence their revenue.

mullingitover 4 hours ago | parent | prev | next [-]

I've tried Amazon for groceries on this line of thinking. Verdict: it's terrible. Their groceries are priced uncompetitively and after a few times having some stranger pick my produce (and doing an offensively bad job of it) I don't do that anymore.

So since I'm 100% definitely going to the grocery store for produce, at minimum, this whole concept fails. May as well pick up the ziploc bags and paper towels as well while I'm there.

borski 5 hours ago | parent | prev [-]

In Q1 2026, AWS was 60% (roughly) of Amazon’s operating income.

I’m not so sure their retail piece is the part that’s making them big money.

whatever1 5 hours ago | parent | next [-]

If they were targeting 60% margins in grocery they would be bankrupt.

Retail has famously razor thin margins.

But their cash flow came in handy when AWS needed 300B in cash for gpus. Nobody could lend them that amount.

borski 5 hours ago | parent [-]

I’m familiar with the margins in retail (my parents ran a retail store their entire lives).

My point wasn’t that they don’t do a lot of volume; it’s that their retail business is not what’s driving their profit, and I don’t believe it’s growing.

I wouldn’t be surprised (though have not looked) if DoorDash (with DashMart), Uber Eats (which does more than just food), and Instacart have eaten significantly into Amazon’s revenue by solving the “get it to me” problem even faster.

whatever1 5 hours ago | parent [-]

In the US last mile is super hard because of the super high wages. The only way to work around it is volume per delivery person.

If you do 2 deliveries per hour (like Uber Eats / door dash), you pay essentially $5/order (assuming a super low us wage of $10/hour and no equipment cost/ gas).

So no in the US, Amazon is not threatened by such delivery services.

Now if you go to China, the equation flips. Which is why Amazon failed completely.

malfist 2 hours ago | parent | prev [-]

Thats the story they tell investors because investors love a growing tech company. But scratch the surface a bit and you see retail shoveling most of it's profit into purchasing AWS.

borski 22 minutes ago | parent [-]

Do you have anything to indicate this? A source or any analysis?

ThunderSizzle 3 hours ago | parent | prev [-]

I see this said a lot, but Amazon products I buy actually work (even if the quality of obviously laughable - it actually performs the function and won't break any time soon to justify a 100x price increase for something more...artisan.

The only order I did for temu, everything arrived completely DOA

AnotherGoodName 5 hours ago | parent | prev | next [-]

It’s also amazing how bad delivery services are in general. The incentives for third party delivery services don’t align well with the other parties. A retailer is judged on the quality of delivery yet only amazon has seemed to realize this (queue incoming anecdotes about amazon screwing up delivery yet i’ve never had an issue getting a refund when it happens).

ghaff 5 hours ago | parent [-]

I think it probably depends too on what different people's living situations are. I have an exurban house with a large driveway and I've basically never had an issue with an Amazon delivery. (Yes, it can be late sometimes but I can track it and I'm usually not in a rush.)

furyofantares 6 hours ago | parent | prev | next [-]

But they don't avoid solving it, they offer it by partnering with instacart.

socalgal2 2 hours ago | parent | prev | next [-]

Sounds Costco not paying for externalities.

serial_dev 4 hours ago | parent | prev | next [-]

They don’t avoid the problem. They avoid solving it and let it be your problem.

m463 5 hours ago | parent | prev | next [-]

It seems costco can deliver HEAVY things that amazon can't (economically, afaict)

Imustaskforhelp 4 hours ago | parent [-]

I was reading the book "How the internet happened": During the dot com bubble, there was a company called furniture.com which basically lost a lot of its investor money by learning the hard truth that IKEA also had to learn that shipping Heavy things like furniture isn't actually economical.

I am not sure if costco's model could allow it but especially for amazon, if they tried to do it or make it their USP like furniture.com, then I can imagine a very different outcome for it overall.

There was also a company I think who spent hundreds of millions of dollars (IIRC) in creating a large grocery website with buying large warehouses then and basically losing a ton of money. That business also failed quite drastically.

Another fun fact: when Amazon was first established, one of the largest loopholes that they had used which one can argue was why they were able to exist in the first place was that although they had selected book for Amazon because books are somewhat centralized (barnes and nobles essentially) but I think that the b&n warehouses required 10 books to be ordered each time.

So within the start, what they did was found out there was 1 book which was consistently out of stock. so they would order 1 book which the customer had ordered and then 9 of those other books. I imagine that if it might not have been for this as well, it might've been hard in the start.

There was also the fact that Barnes and nobles created their website and everyone thought that Amazon would basically die. Logic sort of suggests that it should've.

My conclusion is that Retail works in strange ways and timing matters a lot.

Also there are so many little facts within the book and it might be one of the fastest reads that I had of a book but the dot com bubble does feel quite similar to AI bubble IMO.

Here is a graph that I was making of a very limited connection graph of companies during the dot com bubble. https://files.catbox.moe/xdcxuy.png

I think that i have gone a bit too afar from my original comment but I sometimes like to chat and share bits of knowledge that I know and then I can't resist myself! :-D

shawn_w 2 hours ago | parent [-]

>There was also a company I think who spent hundreds of millions of dollars (IIRC) in creating a large grocery website with buying large warehouses then and basically losing a ton of money. That business also failed quite drastically.

Probably thinking of HomeGrocer or WebVan (which bought out the former and then went bankrupt too)

Imustaskforhelp 2 hours ago | parent [-]

I think it was WebVan and you are right (but I am not entirely sure) but thanks for writing the comment, appreciate it :-D

> (which bought out the former and then went bankrupt too)

ironic, does make you think if the clock has reached full circle in terms of bubbles but there are just so many similarities within the dot com bubble and AI bubble(TM) which are just so hard to ignore.

mawadev 6 hours ago | parent | prev | next [-]

Incredible quote, thank you for posting it

righthand 6 hours ago | parent | prev | next [-]

I hear this, I have been in plenty of meetings where I propose a solution that eclipses most of the project requirements, often for a product person to turn around and say something like “yeah but I like working with X techhnology”, for example Tailwind.

Okay you like Tailwind because you seem to think “p-2” is better than specifying “padding: 2rem;” because when it comes time to tinker with things you don’t want to understand CSS, you want to play with Tailwind.

clickety_clack 6 hours ago | parent | next [-]

Often, you are better off with a single standard environment rather than one with a hodgepodge of locally optimal solutions.

marcosdumay 5 hours ago | parent | next [-]

Hum... You want to say that tailwind is that standard, and some place can just avoid any css by using it?

clickety_clack 4 hours ago | parent [-]

You want to say that there shouldn’t be standards because tailwind has limitations?

stonogo 5 hours ago | parent | prev [-]

Depends on who "you" are. A project manager might be better off. An individual contributor is probably better off using the right tool for the job.

robotswantdata 6 hours ago | parent | prev [-]

You can put tailwind on the CV

Imustaskforhelp 4 hours ago | parent | prev [-]

> A clever person solves a problem; a wise person avoids it.

Wow, what a great quote!I think that this combined with "there is no free lunch" explains a lot of thing (IMO)

(I like to write and once I write, I like to send it free on the internet in the spirit of how older internet must've originally intended but if you wish to read the TLDR it is: Be wise in selecting the problems to be clever at!)

I think that this holds a lot within career-making as well, in terms of deciding what career that you want. For example, I think that sometimes I get hyper-focused on a topic and basically dig the weeds and every information about a particular topic. My recent obsession was with the dot com bubble and supply chains.

but at the same time I think that although its just good thinking about it and gives me more breath of knowledge which helps me form a more nuanced person, but that doesn't mean that for every interest that I have, I have to become the expert or a genuine professional career at it.

Some problems are worth the risk/tradeoff when thought from short term but they quickly become really painful over the long term whereas other problems are more fulfilling long term but really hurt short term and there is a balance within the middle which I have selected which is what's know as CS :-D

I am a somewhat frugal guy and my philosophy has always been of do it yourself but reading about supply chains makes me realize just how interconnected we are. A toilet making company in Japan is an irreplacable component within the AI industry (They make the ceramics sheets on which the wafers are built and they are the only company that have the genuine expertise, patent and skills for doing so and they aren't alone and there are many many companies within such thing)

and even a single aluminim screw-esque component could take like 4-5 turns from australia (mining) -> iceland (cheaper energy) -> China (making proper aluminum bars) -> Vietnam (cheaper labour than China so China itself is offshoring it) -> Back to China.

All while a software engineer from say India/America/Europe is making the website and handling the customer service and taking ad decisions/marketing while another MNC (Amazon) ships it to your doorsteps, a company can be formed anywhere nationwide, and the product could be gone to LATAM.

Basically, although I have gotten on a tangent, my main point is that not every problem has to be solved by you. the world has lots of money in every fields as its just soo interconnected and as such you should decide on the problems which are best worth your time, your expertise and your interests hopefully and tackling that problem and maybe even being clever at that! and being wise in avoiding many of other problems.

Be wise in selecting the problems to be clever at! but to be wise on selecting the problems you want to be clever at, you should be aware of other problems in the first place so its good to analyze more problems, though it could very well be a justification that I might provide myself when I am studying supply chains and the humble container, I also find it interesting how the concepts of containers become so intuitive once you know it in modern shipping and then we applied that same concept AGAIN in Docker/podman but before that time, we were none the "wiser" :-D