Costco didn't start selling products on its own website until 1998, and even then, the online selection was extremely limited. The site primarily served as a hub for add-on services like Costco Travel and provided access to tax software such as TurboTax, rather than functioning as a full-fledged retail channel for members.
In recent years, however, the company has dramatically expanded its online product range. Members can now order certain warehouse items directly through platforms like Instacart and Shipt. Beyond that, the company launched a pure e-commerce initiative called Costco Next, which allowed members to purchase items that were not stocked in physical warehouses. This wasn't a new venture—it had been around since 2017—but Costco rarely promoted it, leaving many members, including myself, completely unaware of its existence. Now, without any prior warning, this service has been discontinued.
Costco Next Officially Shuts Down
Visitors to Costco's customer service page are now greeted with a brief official notice: “Access to Costco Next stores has been closed. Please review the list below for partner brands that still support returns. For eligible returns or warranty inquiries, please contact the relevant supplier directly.” Below the announcement, a long list of partner manufacturers and their respective contact details is provided.
Costco Next was modeled on the third-party marketplace concept pioneered by Amazon.com, offering a vast array of products that were never available on warehouse shelves. However, there was a key distinction from Amazon's approach. Costco Next enabled the company to expand its supply without holding inventory, as all goods were shipped directly by partner vendors. Costco's procurement team carefully vetted these retail partners. Compared to Amazon.com, the products on Costco Next underwent a much more rigorous curation process, always centered on delivering high value to members. Access to the service required a valid Costco membership.
Just recently, the company was publicly praising the performance of Costco Next. During the Q3 fiscal 2025 earnings call, Chief Financial Officer Gary Millerchip stated: “Our curated platform, Costco Next, continues to deliver solid year-over-year growth. In the third quarter of fiscal 2025, sales on this platform matched the total revenue generated in all of fiscal 2022. We are excited about the pipeline of new brand partners and the momentum we see in the business.” The platform featured products from carefully selected suppliers, chosen for their product quality and customer service capabilities, thereby offering a diverse assortment absent from physical locations.
This initiative helped Costco move higher-margin discretionary goods, such as electronics and appliances, all drop-shipped to customers while maintaining exclusive member discounts. The original intent behind Costco Next was to offer members exclusive deals through trusted brands, supplement the in-warehouse product matrix, and bolster the company's e-commerce footprint. Costco's General Merchandise Manager, Cheryl Smeeby, once explained: “The products on Costco Next are separate from those in our warehouses or on our main website, carefully sourced from suppliers known for quality and after-sales support. Through Costco Next, members can purchase a wide range of items from partner brands while enjoying discounts exclusive to Costco members.”
Inquiries sent by reporters through Costco's official media channels have not yet received a response. The sudden shutdown of this service has also been confirmed by external reports.
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