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Costco: Products
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Jim Sinegal, the chief executive of Costco Wholesale, the nation's fifth-largest retailer, had all the enthusiasm of an 8-year-old in a candy store as he tore open the container of one of his favorite new products: granola snack mix. "You got to try this; it's delicious," he said. "And just $9.99 for 38 ounces."
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Costco.com faced real challenges when it came to providing a new, more flexible infrastructure for its business. Commerce Server 2002 Feature Pack 1, a free download for Commerce Server 2002 customers, facilitates business data staging and management. This allows Costco.com to easily add new product categories and offerings instead of relying on busy IT staff to do so. These features translate into increased productivity for employees and faster time to market for new merchandise. Shortly after going live with Commerce Server 2002 Feature Pack 1, Costco.com set a new online revenue record and site record for peak orders.
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Costco began its online presence in 1995 with an informational Web site and in November 1998 began conducting e-commerce at costco.com. The Web site offers a wide selection of name-brand merchandise and services. Some of the product categories include computers, electronics, floral delivery, jewelry, books, CDs, DVDs, travel and pharmacy.
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Costco customers have filed a class-action lawsuit alleging the wholesale club tricked customers into buying products with expired rebates. The complaint claims Costco promoted products with sealed rebate coupons for health and other products. Consumers learned the rebate was expired after purchasing the product and tearing off the rebate label on the package. An undisclosed number of Costco customers are seeking unspecified monetary damages.
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Costco's website attracts different consumer groups, which may help increase its visibility and impact future membership. Online sales are available to non-club members, who must pay a extra 5% fee. Online sales ... make Costco's products accessible to individuals who are not geographically near a Costco location or those who dislike the warehouse atmosphere. However, Costco's online presence may also simply shift membership sales from individual warehouses to the website, due to convenience and consumer preferences.
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Fry's, Costco.com and Amazon.com will begin offering the product in July of this year. The UIP1868P will ... be available at OfficeMax.com in July and available in all OfficeMax store locations in September.
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