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Business

Costco shuts down key service without notice

September 3, 2026 3 min read

Costco did not even sell merchandise on its website until 1998, and in those days, the selection was very limited.

Sure, Costco Travel lived there, but the website was more about advertising ancillary services such as TurboTax access than about selling anything to members.

In recent years, however, Costco has offered a greatly expanded selection, and it allows members to use Instacart and Shipt to order select items directly from its warehouses.

It had also been building on that with its digital-only program, Costco Next, which lets members access items the warehouse club does not stock. It’s not a new service; it has technically been around since 2017. But Costco does not promote the offering, and it’s something I, and many other members, did not know about.

Now, that service has been shut down with no notice.

Related: McDonald’s $3 menu has a problem that hits your wallet hard

Costco closes Costco Next

Visitors to the Costco Next web page got a terse message from the company.

“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 company shared.

That was followed by a long list of company names with their contact information.

A third-party marketplace like the model pioneered by Amazon, Costco Next offered an expanded selection of items that never make it into a Costco warehouse. The program, however, differed from Amazon’s approach in important ways.

More Costco:

Costco Next allowed the retailer to offer more merchandise, but have it shipped directly from partners. The warehouse club, however, is still careful with its merchandise, and its buyers worked with partner retailers.

Next provided a more carefully curated selection than Amazon does, because Costco remains focused on delivering value to members.

Costco Next required a membership to the chain. Shutterstock

Costco recently celebrated Costco Next’s success

“Costco Next, our curated marketplace, also continues to show healthy year-over-year growth. In Q3 fiscal year 2025, our sales on Costco Next equaled our total sales for all of fiscal year 2022, and we are excited about the pipeline of new vendors and development for future rollout,” CFO Gary Millerchip said during the company’s third-quarter 2025 earnings call.

  • 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.

  • The platform helps Costco offer higher‑margin discretionary items (e.g., electronics, appliances, goods sold directly from vendors) while leveraging member pricing perks.

  • The impetus for Costco Next is to strengthen e‑commerce and mobile growth by offering discounted deals from trusted brands that complement warehouse inventory.

“Separate from what members will find in the warehouses or at Costco.com, Costco Next showcases products from some of Costco’s suppliers that have been selected for the quality of their merchandise and their exceptional customer service,” Costco General Merchandise Manager Cheryl Smeby said on Costco’s website.

“By shopping at Costco Next, you have access to a variety of products from these vendors, and you’ll get a discount that is available only to Costco members.”

A request made via the Costco media request form was not immediately answered by the company.

The Press Democrat also confirmed the sudden closure.

ALSO READ: Dollar General and Dollar Tree send message to Kroger and Publix

This story was originally published by TheStreet on Sep 1, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

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