Costco Next has been shut down without notice, ending a digital-only program that connected members to products not sold in warehouses or on Costco.com.
Costco did not begin selling merchandise online until 1998, and the early selection was limited. The company initially used its website to promote services such as Costco Travel and access to products like TurboTax rather than to transact merchandise sales. In recent years its online assortment has broadened, and members have been able to order select items for delivery through Instacart and Shipt.
Launched in 2017, Costco Next offered members access to a wider range of goods directly from partner brands. The service was not heavily promoted, and many members were unaware it existed.
Costco Next closure and member guidance
Visitors to the Costco Next page were met with a brief notice from the company stating, “Access to Costco Next store fronts is no longer available. Please refer to the list below for contact information for vendors with active return policies. For eligible returns and warranty inquiries, contact the vendor directly.” The page then listed participating vendors with their contact details.
Costco Next functioned as a curated third-party marketplace. While it expanded selection beyond what appears in warehouses, the company said its buyers worked directly with partner retailers to maintain quality and value standards. Unlike a broad marketplace model, Costco Next emphasized a narrower, vetted catalog for members and required an active membership to shop.
Recent comments on Costco Next growth
During the company’s third-quarter fiscal 2025 earnings call, Chief Financial Officer Gary Millerchip said the curated marketplace was showing strong momentum. He noted that sales on Costco Next in Q3 fiscal 2025 matched the program’s total sales for all of fiscal 2022, and he pointed to a pipeline of new vendors and future development.
- Products were offered from hand-selected suppliers chosen for merchandise quality and customer service, extending variety beyond typical warehouse inventory.
- The platform supported higher-margin discretionary categories, including electronics and appliances shipped directly from vendors, while maintaining member pricing benefits.
- The initiative aimed to strengthen e-commerce and mobile growth by offering discounted deals from trusted brands that complemented in-warehouse assortments.
Costco executives previously described Costco Next as separate from what members find in warehouses or on Costco.com, highlighting exclusive discounts available only to members. The company did not immediately respond to a request for comment about the shutdown, and a regional newspaper separately confirmed the abrupt closure.
The sudden halt to a growing digital retail initiative mirrors the uncertainty seen when major consumer or retail platforms rapidly change course, similar to how shifts around the planned Shein IPO reshaped expectations in another corner of the online marketplace landscape.