Costco didn’t even sell merchandise on its website until 1998, and in those days the selection was very limited.
As a longtime member, I’ve used the website for benefits like Costco Travel and ancillary services like TurboTax access that the deposit club sells. Until recently, however, I rarely bought anything there.
Costco now has a very extensive selection and allows members to use Instacart and Shipt to order select items directly from its warehouses. It’s building on that with its digital-only program, Costco Next, which lets members access items the warehouse club doesn’t have in stock.
It is not a new service; Technically, it’s been around since 2017. But Costco doesn’t promote the offer, and it’s something that I and many other members didn’t know about.
I actually only found out about it because the chain started mentioning it during earnings calls, which most members don’t listen to or read transcripts of.
A third-party marketplace like the model Amazon launched, Costco Next offers an extensive selection of items that never make it into a Costco warehouse. However, the program differs from Amazon’s approach in important ways.
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April 17, 2001: Costco expands online with a B2B e-commerce site aimed at business customers, accessible through the main Costco.com website, according to a 2001 Costco earnings release.
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2017: Costco partners with Shipt for grocery delivery in select U.S. markets and is expanding same-day and two-day delivery options for members, SuperMarket News reported.
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During the COVID-19 Pandemic (2020-2021): Online sales increased dramatically as consumer demand for contactless shopping grows. Costco’s e-commerce growth in 2020 exceeded the previous five years combined, according to the retailer’s fourth quarter 2021 earnings release.
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Costco’s deal with Shipt completed in 2025according to Costco’s website, and has been replaced by an Instacart partnership.
“Our digital vision at Costco is to deliver a seamless experience that builds trust and loyalty with our members both in-store and online,” Costco CEO Ron Vachris 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 deliver it directly from partners. The warehouse club, however, is still careful with the merchandise, and its buyers work with partner retailers.
It’s a more carefully curated selection than Amazon offers because Costco remains focused on providing value to members. The retailer has grown Costco Next from its humble beginnings.
More retail:
“Costco Next, our organized marketplace, continues to show healthy year-over-year growth. In the third quarter of fiscal 2025, our sales at Costco Next matched our total sales for all of fiscal 2022, and we are excited about the amount of new suppliers and development for the upcoming launch,” said CFO Gary Millerchip during the company’s 2025 quarter calls.
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Costco Next is a clean third party market which allows Costco members to buy directly from select brands and manufacturers at discounted prices without Costco owning all of the inventory itself.
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Products are offered from hand-selected suppliers chosen for merchandise quality and strong customer service, expanding variety beyond typical warehouse inventory.
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The platform helps Costco deliver higher margin discretionary items (eg electronics, appliances, goods sold directly from sellers) while benefiting from member pricing benefits.
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According to strategic reports, Costco Next has become a scalable engine for high-margin products, with estimated sales in Q3 2025 equal to Costco’s entire fiscal 2022 performance in that channel, AInvest reported.
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The impetus for Costco Next is to strengthening e-commerce and mobile growth by offering discounted deals from trusted brands that complement warehouse inventory.
Source: Costco website
“Separate from what members will find in warehouses or at Costco.com, Costco Next features products from some of Costco’s suppliers who have been selected for their merchandise quality and exceptional customer service,” said Cheryl Smeby, Costco’s general merchandise manager. Costco website.
“By shopping at Costco Next, you’ll have access to a variety of products from these vendors and get a discount available only to Costco members.”
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Costco isn’t alone in adding an online marketplace.
“Marketplaces are a relatively simple, low-capital way to expand choice and audience,” GlobalData CEO Neil Saunders told RetailWire.
He believes, however, that it is not as simple as joining an online marketplace to an existing business.
“If it works, they can generate additional revenue. But they’re not surefire winners. Retailers need to make sure they’re not just cannibalizing existing sales and can’t be used as an excuse to neglect the core proposition. And of course, there are now so many markets that strategy isn’t really a big differentiator,” added Saunders.
Retailwire Brain Trust colleague Jeff Hall believes that online marketplaces are table stakes, but they need to be driven with intention.
“They allow you to expand assortment, enter new categories, and test demand without tying up capital or taking on discount risks. Just as importantly, they attract new customers who often turn into higher-value buyers of inventory held,” he posted.
Costco Next has been around since 2017, but the brand has never promoted it.
“Costco instead relies on members and a rotating selection of deals to sell, often through social media and word of mouth. Costco Next similarly benefits from this fear of missing out,” said CustomerThink.com.
Services were launched with approximately 15 providers.
“There are currently more than 90 brands included in the Costco Next universe. Some are familiar: Mikasa dinnerware, Dearfoams slippers, and Thomas Kinkade Studios fine art. You’ll also find Artika lighting, Baggallini accessories, bench wear, Cangshan artisan flatware, Briggs & Riley, floor luggage, and Golden Arrow, among others.
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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 favorite source by clicking here.