Costco didn’t sell merchandise on its website until 1998, and, in those days, the selection was very limited.
As a long-time member, I used the website for benefits such as access to Costco Travel and ancillary services such as TurboTax, which the warehouse club sells. Until recently, though, I rarely bought anything there.
Now, Costco has a much expanded selection, and it allows members to use Instacart and Shipt to order select items directly from its warehouses. It’s building on its digital-only program, Costco Next, which lets members access items the warehouse club doesn’t stock.
This is not a new service; It has technically been since 2017. But Costco does not promote the offer, and this was unknown to me and many other members.
In fact, I only learned about it because the chain started mentioning it on earnings calls, which most subscribers don’t listen to or read the transcripts.
A model pioneered by third-party marketplaces such as Amazon, Costco Next offers an expanded selection of items that don’t make it into a Costco warehouse. The program, however, differs from Amazon’s approach in important ways.
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April 17, 2001: Costco expands online with B2B e-commerce site According to the 2001 Costco earnings release, aimed at business customers accessible through the main Costco.com site.
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2017: Costco partners with Shipt for grocery delivery in select U.S. markets and expands same-day and two-day delivery options for members, Supermarket News reported.
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During the COVID-19 Pandemic (2020 to 2021): Online sales increased dramatically As consumer demand for non-contact shopping increases. Costco’s ecommerce growth in 2020 surpassed the previous five years combined, according to the retailer’s fourth-quarter 2021 earnings release.
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Costco’s deal with Shipt Expires in 2025According to Costco’s website, and was replaced with an Instacart partnership.
“Our digital vision at Costco is to deliver a seamless experience that builds trust and loyalty with our members, both in the warehouse and online,” Costco CEO Ron Wakris said during the company’s first quarter 2025 earnings call. “We aim to make shopping at Costco easier, faster and more personal, no matter where or how our members choose to shop. It’s not about technology for technology’s sake.”
Costco Next allows the retailer to offer more merchandise, but it’s shipped directly from partners. Warehouse Club, however, is still careful with its business, and its buyers work with partner retailers.
It’s a more carefully curated selection than Amazon offers, because Costco remains focused on offering value to members. The retailer has grown Costco Next from its humble beginnings.
More retail:
“Costco Next, our curated marketplace, also continues to show healthy year-over-year growth. In the third quarter of fiscal 2025, our sales on Costco Next equaled our total sales for fiscal 2022, and we are excited about the development of our pipeline of new vendors and future rollouts,” said CFO Gary Millerchip of the company’s earnings. 20520202020020020000000000000000000000000000000000000000000002000 कलको समयमा भने।
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Costco Next is curated Third-party markets That lets Costco members buy directly from select brands and manufacturers at discounted prices, without having to keep all of Costco’s inventory itself.
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Products are offered from hand-selected suppliers Chosen for the quality of their merchandise and strong customer service, expanding the variety beyond typical warehouse inventory.
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The platform helps Costco offer High margin discretionary items (eg, electronics, appliances, goods sold directly from resellers) taking advantage of member pricing features.
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According to strategic reports, Costco Next has become a scalable engine for high-margin products, with projected sales in Q3 2025 equaling Costco’s entire fiscal 2022 performance in that channel, AInvest reported.
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Costco is the inspiration for Next Drive e-commerce and mobile growth By offering discount offers from trusted brands that complement warehouse inventory.
Source: Costco website
“Different from what members find in warehouses or on Costco.com, Costco Next showcases products from some of Costco’s suppliers selected for the quality of their merchandise and their exceptional customer service,” said Cheryl Smeby, Costco general merchandise manager. Costco’s website.
“By shopping at Costco Next, you have access to a variety of products from these vendors, and you’ll receive discounts available only to Costco members.”
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Costco is not alone in adding an online marketplace.
“Marketplaces are a relatively simple, low-capital means of expanding choice and broadening audiences,” GlobalData’s Managing Director Neil Saunders shared on RetailWire.
He believes, however, that it’s not as simple as tacking on an existing business to market online.
“If they work, they can generate incremental revenue. But they’re not surefire winners. Retailers need to make sure they’re not just cannibalizing existing sales, and they can’t be used as an excuse to ignore the core offering. And of course, there are so many markets that strategy isn’t really a big difference,” Saunders added.
His RetailWire Brain Trust colleague, Jeff Hall, believes that online marketplaces are table stock, but must be driven with intention.
“They allow you to expand assortment, enter new categories, and test demand without tying up capital or risking markdowns. Importantly, they attract new customers who often convert to high-value buyers of proprietary inventory,” he posted.
Costco Next has been around since 2017, but the brand has never promoted it.
“Costco instead relies on its membership and a rotating selection of deals to sell for it, often through social media and word of mouth. Costco Next also benefits from the fear of missing out,” shared CustomerThink.com.
Services started with about 15 suppliers.
“Coast’s Next Universe currently includes more than 90 brands. Some are familiar: Mikasa Dinnerware, DearFoams Slippers and Thomas Kinkade Studio Fine Art. You’ll also find Artica lighting products, Baggalini accessories, Bench Activeware, Kangshan Handcrafted Cutlery, Briggena & Golden Floor, Briggs & Golden Floor. Kiplinger reports.
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This story was originally published by TheStreet on January 29, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
