"Generally, when Costco is the primary obligor, is subject to inventory risk, has
latitude in establishing prices and selecting suppliers, can influence product or service specifications,
or has several but not all of these indicators, revenue is recorded on a gross basis. If the Company is
not the primary obligor and does not possess other indicators of gross reporting as noted above, it
records the net amounts as commissions earned, which is reflected in net sales." (pg 58)
Looks like Costo only records the commision earned on online sales shipped direct.
"Merchandise costs also include salaries, benefits,
depreciation on production equipment, and other related expenses incurred by the Company’s crossdocking
depot facilities and in certain fresh foods and ancillary departments." (pg 59)
Given the size of the operation, this is the way to record it but it does distort the margin calculation from the old days. They include a lot of soft costs.
Up in Canada they advertise some of there spas as "Enjoy peace of mind knowing you have a product built by the Arctic Spas® family" However, the style is not similar to any of the arctic or coyote spa. If i take the costco price and add the upgrades and dealer throughins (using costco prices when available) you can have a Tundra Legend Extreme with most the bells and whisltes for same price. Judging by the descriptions, that's a big upgrade.