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Two helpful questions I don’t know answers to, but I’m quite confident that the difference between answers are the crux of the matter:

Who are Costco customers?

Who are Amazon customers?

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I think that most Costco customers also use Amazon. I.e. I get my basic bulk items from Costco and my specific items from Amazon. Perhaps this is why amazon is trying to get these customer with "Subscribe and save" which offers discounts for subscriptions on basic items.

Although, I have not seen any real data on this. Just my gut read.

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