As one of the largest big box retailers in the world today, Costco utilizes an innovative and complex POS system to handle its daily operations.
Costco uses the CRX platform as its global solution with major features that make it one of the best POS systems for high-volume transactions and supply chain tracking.
Continue reading to learn more about Costco's custom built POS solution!
- 1 Costco POS System
- 1.1 History of the CRX Platform
- 1.2 Costco Offers Point of Sale Solutions
- 1.3 Pros and Cons of Costco Merchant Services
- 1.4 Final Thoughts
History of the CRX Platform
Costco has partnered with Information Resources, Inc. to develop an exclusive Costco POS system known as the Costco Collaborative Exchange System. The CRX platform has been on the market since 2004 and has given Costco an incredibly detailed solution for tracking payments, inventory, and much more.
Instead of having to rely on a number of disparate sources of data to get necessary information, Costco can now use this high-end tool to gain oversight of the full range of the company's operations.
Here are some of the top features of the CRX Platform:
Enhanced Category Data
The "Category Tools" service present on the Costco CRX platform makes it a great choice for the big-box store. Before its implementation back in 2013, Costco vendors were only able to access data specific to them.
However, with new updates, these vendors can now check data in the rest of their category to see how other vendors are performing and measure their performance against those members.
Using this data, Costco and its vendors are able to track performance in their category, identify trends within their category, and gain very valuable insight into the landscape.
Beyond that, this tool also provides vendors and Costco managers with a deeper look into the competitive landscape over the past few years, allowing manufacturers that work with Costco to adjust the way they perform business based on any slight changes in performance or category. These insights reach out into the realm of product demonstrations, promotional activities, inventory quantities, and more.
IRI and Costco started releasing inventory data and daily sales back in December of 2012 for the community of manufacturers to see. This new update answered the requests of manufacturers for Costco to provide them with a real-time data solution.
Every week day, the Costco's CRX program provides all of the sales metrics for the previous day, giving manufacturers insight into all of the inventory that is available in all of the stores. This unique service is very exclusive to Costco, as there are not any other companies that are offering this kind of service right now.
The beauty of allowing this real-time information out into the community is that it allows Costco partners to create immediate reactions to the slight changes in the retail environment.
Supply Chain Management
Costco operates with very low margins, meaning that the company must be very careful about managing their orders and forecasting trends so that they do not end up with any inventory problems.
The new CRX system, which updates every single day, uses a very unique bundle of features to manage the supply chain. With inventory information and other POS features, Costco and its partners are able to make quick decisions regarding inventory.
They can collectively forecast and get an idea of how demand will pan out in the future.
On this new system is a bundle of three inventory metrics, including orders received, on order, and in transit. These new measures were made to complement the measures that already exist within the system, including average supply days and inventory on hand. In essence, all of these together create one of the most diligent and robust POS supply chain management solutions on the market today.
Nowadays, manufacturers that work with Costco have incredible insight into the way their products are reacting, even way before they actually make it to Costco. With accurate and detailed forecasting, any vendors that are subscribed to the Costco CRX system can optimize their inventory, not only in the warehouse but at all levels. In doing so, Costco and its manufacturers are able to reduce carrying costs, reduce out-of-stock items, and lower operating costs.
Seasonal Vendor Program Updates
When it comes to Costco's seasonal products, there are many differences between inventory insights, daily sales, and weekly sales. If these differences aren't carefully managed, it can cost the company hundreds of thousands of dollars. One of the great things about the new CRX platform is that it provides manufacturers with real-time data surrounding sales information, allowing them to make adjustments in the early stages if necessary.
Costco Offers Point of Sale Solutions
Beyond the POS solutions that Costco uses in its stores, it now offers Costco members the ability to purchase point of sale solutions for their own business. Costco Merchant Services resells solutions from Elavon, which is one of the biggest payment processors in the United States. It should be noted that Elavon performs credit card processing and any other processes necessary for maintaining merchant accounts.
Now, though Costco is best known for offering both executive members and non-executive members with incredible savings, the same isn't necessarily true for Costco Merchant Services. Costco Merchant Services provides its members with discounts compared to what one would end up paying if they signed up with Elavon directly, though the tiered pricing that is offered by Costco Merchant Services can end up being more costly for larger businesses. In fact, tiered pricing is often very expensive when it comes to credit card processing, which is why some larger businesses choose to avoid it altogether.
Some of the products that Costco offers its members through its Costco Merchant Services and credit card processing services include:
Costco offers its customers both traditional terminals and smart terminals. The traditional terminals are countertop terminals that make use of the latest in touchscreen technology.
Through Costco Merchant Services, customers can also purchase smart terminals, which are wireless and can accept payments from anywhere in your establishment.
As for traditional terminals, Costco offers Ingenico Desk 3500 credit card processors so that you can easily go through credit card processing.
Costco Merchant Services also offers the Poynt Smart Terminal for those who are looking for an all-in-one smart terminal for service providers, retail stores, and restaurants, as well as the Ingenico Move 5000, which is an absolute game-changer in the world of business applications.
With extremely powerful multimedia solutions, a 3.5" color touchscreen, and an intuitive interface, it is one of the most robust smart terminals on the market today.
Costco's Merchant Services offers POS solutions as well, which provide Costco executive members with payment processing speeds higher than most payment processing systems out there.
Costco Merchant Services has a wide variety of POS and ePOS solutions depending on your needs, though all of them provide high-quality credit card processing.
The main offering from Costco Merchant Services is the Talech cloud-based POS system.
This feature-rich system from Costco is made to simplify daily operations at high speeds, creating orders, applying discounts, managing inventory, and providing insight into valuable data.
Because it is a cloud-based system, you can manage your business from wherever you have an Internet connection. You will always feel connected with the ability to gather the data that you are after in real-time.
Costco Merchant Services offers business-specific POS solutions as well, including:
- Talech for Retail
- Talech for Restaurants
- Talech on Moby
- Talech Mobile
- Talech Online Ordering
All of these systems can be tied in with additional equipment purchased from Costco's Merchant Services, including your debit card and credit card processors.
Converge Online Payment
Half of the total retail sales for any given company take place online, meaning yo need to be able to provide each customer with the option to purchase goods online securely and with flexibility, regardless of if they shop using their computer, their tablet, or their smartphone.
Converge Online is a very unique system that Costco Merchant Services offers. With Converge Online, you have the ability to set up online payment processing, which can increase sales and better the customer experience. Not only that, but Converge Online can also help with customer retention by creating a number of very easy ways to collect payments.
Converge Online combines a virtual terminal with a payment gateway, giving users additional security through a payment gateway.
Pros and Cons of Costco Merchant Services
- Incredible POS System available
- No early termination fee
- Tons of hardware options to choose from
- Tiered pricing can be a bit expensive
- Hidden fees
- Customer support is lacking
So, as you can see, Costco uses a robust POS system to handle its worldwide business operations, though has also recently set up Costco Merchant Services to provides its members with unique POS solutions for their businesses.
We recommend checking out the POS solutions offered by Costco Merchant Services if you have a small business, as the tiered pricing for credit card processing can get a bit expensive for larger businesses.
To reap the savings that Costco Merchant Services has to offer, you will need to become a Costco Executive member.
Costco Merchant Services does provide financing through its program, which can make starting out with the merchant accounts program fairly affordable.
While fees for executive members are less, the difference isn't massive.
We would highly recommend checking out ourreviews of some of the top POS systems on the market today for small businesses to learn more and find a POS solution for your business.
Costco takes aid from innovative inventory system that provides real time inventory information called Collaborative Retail Exchange (CRX).What POS system do most retailers use? ›
- Shopify POS.
- Square Point of Sale.
- Lightspeed Retail.
- Heartland Retail.
- Stripe Terminal.
- QuickBooks Point of Sale.
- Square for Retail.
CRX is a single, global solution for category, POS and supply chain tracking at Costco, which is available in United States, Canada, Mexico and now Australia.What is a POV system? ›
A point of sale, or point of purchase, is where you ring up customers. When customers check out online, walk up to your checkout counter, or pick out an item from your stand or booth, they're at the point of sale. Your point-of-sale system is the hardware and software that enable your business to make those sales.Does Costco still use as400? ›
Costco uses AS/400s (model #530; a four-way risk box) for their mainframe Account Payable system in their buying, warehouse operations, merchandising and accounting departments.Are all costcos set up the same? ›
Monroe says that every Costco warehouse is different and unique, but that the Kirkland Signature brand and the general store layout is a constant in all the locations she's visited. "I just feel at home at Costco so no matter where I am in the world, it's just comforting," she said.What are the two 2 most common operating systems for POS devices? ›
Do you prefer Apple or Android devices? Some mobile POS systems work on both iOS and Android tablets and PCs, while others only work with one operating system. The main advantage of using iPad-based systems is that they are known for being user-friendly, stable and secure.What POS system does TJ Maxx use? ›
The parent company of discount retailers T.J. Maxx and Marshalls has signed a three-year deal worth more than $35 million with Fujitsu Transaction Solutions Inc. to replace point-of-sale (POS) terminals in its stores around the globe.What POS system does McDonald use? ›
McDonald's uses the NewPOS NP6 system, also known as the McDonald's NP6, MediaWorks NewPOS, or MW NewPOS (as well as Torex or Savista NewPOS).What is the highest paying job at Costco? ›
|Rank||Job Title||Average Salary|
|3||Director, Membership Marketing||$59,469|
- Standard: Costco's base membership tier, called Gold Star, is $60 annually.
- Executive: The Gold Star Executive membership is $120 a year. Executive members get an annual 2% reward (up to $1,000) on qualifying Costco, Costco.com, and Costco Travel purchases.
- Spices. With the exception of salt, every spice and seasoning has a limited shelf life. ...
- Condiments. ...
- Flour. ...
- Baking powder. ...
- Oil. ...
- Coffee. ...
- Detergent. ...
- Personal care items.
- Mobile point-of-sale systems. ...
- Tablet POS systems. ...
- Terminal POS systems. ...
- Online point-of-sale system. ...
- Self-service kiosk POS. ...
- Multichannel POS systems. ...
- Open-source POS systems.
- Zenith bank Agent Banking. ...
- UnionDirect. ...
- UBA Monie. ...
- FCMB Agent Banking Services. ...
- Ecobank Xpress Point. ...
- Stanbic IBTC @ease Agency Banking Service. ...
- Keyserv Agency Banking Service. ...
- Heritage Bank CornerShop Agent Banking.
- Best Overall: Square.
- Best Value: eHopper.
- Best for Restaurants: TouchBistro.
- Best for Retail: Vend.
- Best for E-Commerce: Shopify.
- Best for Inventory Management: ShopKeep by Lightspeed.
The AS/400 is rebranded as the eServer iSeries. The iSeries server is renamed IBM System i, distinguishing it from System p hardware, which runs AIX and Linux.What replaced AS400? ›
In 2000, AS400 was rebranded or modified to IBM i Series server. Later in 2006, the iSeries was replaced with the IBM system i. IBM i is the current operating system that supports all IBM Power systems.What company uses AS400? ›
Who uses IBM AS/400?
|Company||The North Face, Inc.|
Brotman and James D. Sinegal opened the first Costco in Seattle in 1983. The Price Company (corporate parent of Price Club) and Costco merged in 1993 to become Price/Costco. In 1997 the corporate name was changed to Costco Companies, Inc., and in 1999 the present corporate name was adopted.What is Walmart's version of Costco? ›
Walmart's Sam's Club vs. Costco. Costco and Sam's Club have many things in common, but they also have a few major differences.
The Costco membership card is non-transferable, but there are several ways to share the experience with family and friends. Anyone with a card can bring up to two guests to the Warehouse during each visit. Keep in mind that purchasing items is exclusive to Costco members.What are the 3 most popular operating systems? ›
The three most common operating systems for personal computers are Microsoft Windows, macOS, and Linux. Modern operating systems use a graphical user interface, or GUI (pronounced gooey).What are the 3 most operating systems? ›
There are many operating systems that are available however the three most common operating systems are Microsoft's Windows, Apple's macOS and Linux.What is the most widely used POS system for restaurants? ›
- Best Overall: TouchBistro.
- Best Free Option: Square.
- Best for Dine-In Restaurants: Upserve.
- Best for Carry-Out: Lightspeed.
- Best for Food Trucks: Clover.
- Best for Bars: Revel.
- Best for Loyalty Features: Toast.
In the Agreement, Trader Joe's agreed to install tactile point of sale devices at all its stores in the United States.What POS system does Marshalls use? ›
To meet this need, Marshall Retail Group upgraded its in-store technology to Oracle Retail last year. Working with BTM Global, all stores were moved to the modern Oracle Retail Xstore Point-of-Service (POS) in just 100 days.What POS system does Burlington Coat Factory use? ›
Beginning in 2001, Burlington Coat Factory began installing the Linux POS platform in its new and remodeled stores (less than 15 percent of its total number of stores).Who does Starbucks use for POS? ›
Starbucks is one of the biggest retailers in the world, and Square is one of the most well-regarded point-of-sale service providers, so their partnership should have come as no surprise.What POS Does Little Caesars use? ›
EMV Restaurant POS System Linux from Amber Systems Technologies , AST POS - little caesars.What POS system does Arby's use? ›
Arby's Point of Sale Software
NCR Restaurant POS software provides smart people and smart technology to help you manage your operations, connect with customers and enhance your business with mobility options.
The easiest job at Costco is a front end assistant, and most entry-level jobs start at this position. Other jobs that are easy for employees at Costco include all entry-level employees like a cashier assistant, food service assistant, food court worker, or customer service representative.How much are Costco bonuses? ›
Costco offers bonuses for employees after five years.
As a Costco employee of five years or more, you can get an average of $4,000 in bonuses every year. Every six months, Costco gives out a bonus of up to $3,500.
The average hourly rate for Receptionist/Greeter I in companies like COSTCO WHOLESALE CORP /NEW range from $17 to $22 with the average hourly pay of $19.Is the $120 Costco membership worth it? ›
We'll make it very clear and simple for you: the $120 annual fee for the Executive card is worth it if you spend more than $500 a month or $6,000 a year total at Costco on eligible purchases.How much do you need to spend at Costco to make membership worth it? ›
If you spend around $500 per Costco run and make at least six runs a year, the Executive membership may be good for you.Which membership is better at Costco? ›
The decision to upgrade your Costco membership or not should really be a simple one. If you'll earn enough cash back to justify an executive membership, go for it. Otherwise, stick to the basic plan if it works out better financially for you.What does 49 cents mean at Costco? ›
If a Costco price tag ends in . 49, . 89, or . 79 it means Costco got a special deal from the manufacturer.What is Costco's most popular item? ›
Yes, that's right! Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue. Costco's toilet paper is thicker and more absorbent than most other brands.
2. Best: Tuesday - Thursday afternoon. Afternoons, Tuesday - Thursday is a sweet spot to shop if you have time during the weekday. Timing is of the essence — after the lunch rush, but before the after-work crowd.Does Apple make a POS system? ›
It will allow iPhones to accept payment via phone-to-phone as well as contactless credit cards, both of which use NFC (Nearfield Communication) technology. Apple will not be offering a POS product, but this does significantly change the game for POS vendors.
There are four main types of POS systems that small businesses use today: legacy, tablet, mobile, and cloud-based POS systems. We're explaining what each one is, its key features, how much you can expect to pay for them, and several examples of each.Is Amazon a POS system? ›
Overview of Amazon POS
As recently reported in an exclusive Business Insider report, Amazon is developing a new POS system to compete with some top POS companies like Shopify, PayPal, and Square POS.
- Vend. Vend is one of the most popular and easiest POS solutions, used by retailers of all sizes to manage sales, customers, inventory and rewards. ...
- Square. Square is popular because the app is free and easy. ...
- QuickBooks. ...
- Revel. ...
- ShopKeep. ...
Square: Overall best free POS software for small businesses. PayPal Zettle: Best for microbusinesses and solopreneurs. Helcim: Best for businesses with large-volume transactions including business-to-business (B2B) sellers. Toast: Best for free hardware and software solutions for small restaurants.What system does target use? ›
Target utilizes its own in-house POS system, which has been developed by its IT department, Target Technology Services. Each store has its own servers capable of running about 30 registers, and these are supported by a third party IT services provider whose technicians are trained in Target store procedures.How much can a POS agent make in a day? ›
You can earn as much as 5,000-11,000 Naira per day if you have a decent location and have earned confidence with the community.What is the minimum amount to start a POS business? ›
Your starting cost depends on the scale at which you want to run the business. The main capital you need for this business is the cost of the machine and the funds you'd be dispensing to your clients. This should be between N50,000 and N250,000.What ecommerce platform does Costco use? ›
It also expanded its same-day online grocery delivery program through Instacart for about 1,700 items — including perishables — to more locations. The minimum order value is $35, and Instacart charges a service fee. Currently, 376 U.S. Costco stores participate.Does Costco use SQL? ›
The company can store its data in database programs such as Microsoft Access, Oracle Database, and SQL Server.How does Costco use CRM? ›
Using FreeCRM.com, Costco Wholesale Corporation can easily track potential affiliate partners and existing partner relationships, tracking the type of benefits that Costco offers, such as special purchase programs, coupons, and discounts extended to participating organizations.
Costco Wholesale Corp. inventories, valued on a LIFO basis, on Aug 28, 2022 were $17,907.Who is Costco biggest competitor? ›
Costco Wholesale Corp's (COST) main competitors in the highly competitive retail market of large discount stores are Walmart Inc. (WMT) and Target Corporation (TGT). These companies are also sometimes classified as consumer defensive stocks.Who is Costco partnered with? ›
Costco has partnered with outside companies including Google Shopping and Instacart so its products can be delivered through these e-commerce delivery businesses.Who handles Costco logistics? ›
On behalf of our clients, TAGG Logistics fulfills and distributes product to Costco's many warehouse stores.Is SQL losing popularity? ›
Absolutely not. In fact, the use of SQL-based systems is growing. So, let's look at how that's possible.Does Costco use Azure? ›
Responsible for developing and maintaining hub-and-spoke infrastructure in multiple Azure AD tenants.Does Costco scan code of practice? ›
Does Costco participate in the Scanning Code Of Practice, better known as 'SCOP?' Yes, they do! (Read all about it in this Bargainmoose Scanning Code Of Practice Post if you are unfamiliar with SCOP.)What are the 3 common CRM models? ›
There are three main types of CRM systems: collaborative, analytical, and operational. Here's how to choose the best one for creating better conversational customer experiences for your customers.What are the 5 types of CRM? ›
- Lead management. A CRM system of this type helps company find potential customers – leads, generate and capture leads, nurture leads and turn them into paying customers – deals. ...
- Sales management. ...
- Contact management. ...
- Marketing CRM. ...
- Helpdesk and customer support.
The three types of CRM systems are operational, analytical and collaborative.
The difference in a corporation's earnings from using LIFO instead of FIFO can be determined by the amounts reported in the balance sheet account LIFO Reserve. Generally, the LIFO Reserve information is found in the notes to the financial statements.How do you know if its LIFO or FIFO? ›
To calculate FIFO (First-In, First Out) determine the cost of your oldest inventory and multiply that cost by the amount of inventory sold, whereas to calculate LIFO (Last-in, First-Out) determine the cost of your most recent inventory and multiply it by the amount of inventory sold.Where do most of Costco's profits come from? ›
Costco makes a small percentage of its profits from its merchandise, whereas the bulk of its profits come from its membership dues. Only members can shop at Costco. The membership business model allows Costco to undersell the competition by offering products in bulk at lower prices to ensure customer loyalty.