Costco’s Soaring Sales of Gold and Silver: Driving E-Commerce Growth with Low Markups

Costco has experienced significant growth in the sales of its Rand and PAMP gold bars, with an estimated $200 million in monthly revenue. The company’s strong e-commerce performance is attributed to these high-value items, which have a low markup to the metals’ spot price. Despite relatively low profit margins, the sale of gold and silver has been beneficial for Costco’s e-commerce business.

The strategy of selling gold and silver at low markups has proven successful for Costco, contributing to their digital sales increasing by 20.7% compared to the previous year. These member exclusives have attracted new sign-ups to Costco, helping drive e-commerce growth for the company. The buzz around these metals has been a major factor in this success, showcasing strong sales and growth potential for Costco.