Costco didn’t sell merchandise on its website until 1998, when the selection was very limited.
As a long-time member, I use the site to receive benefits like Costco Travel and ancillary services like TurboTax sold by the warehouse club. Until recently, though, I rarely bought anything there.
Now, Costco’s selection has greatly expanded, and members can order select items directly from its warehouse using Instacart and Shipt. Building on that, it launched Costco Next, a digital-only program that gives members access to items the warehouse club doesn’t stock.
This is not a new service; Technically, it’s been around since 2017. But Costco does not promote this product, something neither I nor many other members know.
In fact, I only learned about it because the chain started mentioning it during an earnings call, and most members wouldn’t listen or read the minutes.
Costco Next is a third-party marketplace similar to the model pioneered by Amazon, offering a wider selection of products that have never entered Costco warehouses. However, the plan differs from Amazon’s approach in some important ways.
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April 17, 2001: Costco expands online with B2B e-commerce site According to the 2001 Costco earnings report, the service is intended for business customers and can be accessed through the main Costco.com website.
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2017: Costco partners with Shipt The service is available for grocery delivery in select U.S. markets and offers members same-day and two-day delivery options, Supermarket News reports.
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During the COVID-19 Pandemic (2020-2021): Online sales surge significantly As consumer demand for contactless shopping continues to grow. According to the retailer Costco’s fourth-quarter 2021 earnings report, the company’s e-commerce growth in 2020 exceeded the previous five years combined.
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Costco strikes deal with Shipt Ends in 2025and was replaced by the Instacart partnership, according to the Costco website.
“Costco’s digital vision is to provide a seamless experience that builds trust and loyalty for our members, both in the warehouse and online,” Costco CEO Ron Vachris said during the company’s first-quarter 2025 earnings call. “Our goal is to make shopping at Costco easier, faster and more personal, no matter where or how our members choose to shop. This is not technology for technology’s sake.”
Costco Next is not promoted by the warehouse club and has its own website.Shutterstock · Shutterstock
Costco Next allows retailers to offer more merchandise but ship directly from partners. However, Warehouse Club remains very cautious about its merchandise, and its buyers work with partner retailers.
This is a more curated selection than what Amazon offers, as Costco remains focused on providing value to members. Costco Next is a retailer that has grown from 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 were equal to our total sales for the full year of fiscal 2022, and we are excited about the development of our pipeline of new vendors and future launches,” Chief Financial Officer Gary Millerchip said during the company’s third quarter 2025 earnings call.
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Costco next step It’s a planned third party market Costco members can buy directly from select brands and manufacturers at discounted prices without Costco holding all inventory itself.
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Products are provided by carefully selected suppliers Selected for the quality of their merchandise and strong customer service, their assortment goes beyond typical warehouse inventory.
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The platform helps Costco provide Higher profit discretionary projects (e.g. electronics, appliances, items sold directly from suppliers) while taking advantage of member pricing benefits.
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According to AInvest, according to the strategic report, Costco Next has become a scalable engine for high-margin products, and sales in the third quarter of 2025 are expected to be equivalent to Costco’s entire fiscal 2022 performance in this channel.
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Costco Next is driven by Strengthening e-commerce and mobile growth Replenish warehouse inventory by offering discounted offers from trusted brands.
Source: Costco website
“Unlike the products members see in the warehouse or on Costco.com, Costco Next features products from a select group of Costco suppliers who have been selected for the quality of their merchandise and exceptional customer service,” said Costco Merchandise Manager Cheryl Smeby. Costco’s website.
“By shopping at Costco Next, you can purchase a variety of products from these vendors and receive discounts only available to Costco members.”
Related: Costco Anywhere Visa vs. Sam’s Club Mastercard: How the Warehouse Club Credit Card Compares
Costco isn’t the only company increasing its online marketplace.
“Marketplaces are a relatively simple, low-capital way to expand choice and audience,” GlobalData managing director Neil Saunders told RetailWire.
However, he doesn’t think it’s as simple as adding an online marketplace to an existing business.
“If they work, they can generate incremental revenue. But they’re not a surefire winner. Retailers need to make sure they don’t just cannibalize existing sales, and they can’t be used as an excuse to ignore the core proposition. Of course, there are so many markets now that the strategy isn’t really a big differentiator,” Saunders added.
His colleague Jeff Hall at Retailwire Brain Trust believes that online markets are table stakes but must be run with intention.
“They allow you to expand assortment, enter new categories and test demand without tying up capital or risking markdowns. Just as importantly, they attract new customers, who often convert into higher-value buyers of your own inventory,” he writes.
Costco Next has been around since 2017, but the brand has never promoted it.
CustomerThink.com shares: “Costco relies on its memberships and rotating selection of deals to generate sales, often through social media and word-of-mouth. Costco Next also benefits from this fear of missing out.”
The service is launched by about 15 providers.
“Currently, there are over 90 brands in the Costco Next world. Some of them are familiar: Mikasa tableware, Dearfoams slippers and Thomas Kinkade Studios fine art. You can also find Artika lighting products, Baggallini accessories, Bench sportswear, Cangshan handmade tableware, Briggs & Riley luggage and Golden Arowana flooring, to name a few,” Kiplinger reports.
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This article was originally published by TheStreet on January 29, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
