Welcome back to the Retail Arbitrage series. This week, we’re covering Costco, a store that sits somewhere between wholesale and retail, but it isn’t wholesale as us FBA sellers recognise it as. It’s a unique store that many overlook when it comes to RA, but when used properly, it can be a goldmine for high ticket, fast selling products. To be clear, Costco isn’t the kind of wholesaler you’d use for FBA style wholesale, you can literally sign up and walk into their store, this is more RA and OA territory, and very lucrative when approached correctly.
How Costco Works
Costco is a membership only warehouse. It’s laid out like a classic wholesaler, large industrial style aisles, bulk packaging, towering shelving racks, and pallet displays. It stocks everything from electronics and seasonal items to food, household essentials, toys, and even garden furniture.
There is no click and collect, so this blog will focus solely on the RA side of things. However, you can still use online sourcing strategies to support your RA efforts, and that’s where the opportunity lies.
Where to Find Profitable Items
Your best bet with Costco is to start online. Visit the sale section of the website and subscribe to the Costco newsletter, these two sources will alert you to the latest offers and price drops.
Now here’s the key, many of these deals are available both online and in-store. Once you find a hot product online, call your local Costco and surrounding locations to check if they’ve got it in stock. If they do, plan an RA trip and clear the shelves. I know people who’ve done exactly this, calling ahead, checking stock levels, and then clearing out multiple Costco stores in a matter of days.
How Clearance Works
You won’t find typical clearance stickers or markdowns in Costco. Everything uses the same white price tags, so it’s hard to find deals straight off the shelf. You need to go in knowing exactly what you’re looking for. Most profitable products are found through research online, not while walking the aisles.
There’s technically no clearance in Costco. There are no coloured stickers or dedicated clearance zones. What you’ll find instead are seasonal or temporary offers, the items featured in the offers or the weekly/monthly newsletter. These deals are effectively your clearance, they’re just structured differently. So forget clearance baskets or red tags, Costco doesn’t work that way.
Best Time of Year for Costco
There’s no distinct seasonal pattern to Costco. That said, end of summer tends to be a great time to scoop up discounted outdoor, garden, and summer lines (like jacuzzis, pressure washers, fans, etc.).
In general, Costco offers consistent deals all year round. The trick is to stay vigilant on their promotions via their site and newsletter. You’ll regularly find high ticket, fast moving items that don’t tank.
Costco Hacks
- You need a Costco membership to shop — it’s around £35/year, but you’ll make this back in no time if you’re sourcing correctly.
- Find deals online first, then call your local and surrounding stores to check availability before heading out.
- Get a large trolley on your way in — this isn’t your usual supermarket RA trip. Some of these products are bulky.
- You can often hit multiple Costcos in a single day if the product is in stock across stores.
- Products from Costco rarely brick quickly and tend to move faster than items from traditional discount stores.
Pros and Cons of Costco
Pros:
- High ticket, fast selling items
- Easy parking and retail park locations
- Rarely oversaturated listings
- You can use online sourcing to fuel RA
- Great part of a well rounded sourcing strategy
- Fun to shop in — makes RA more enjoyable
Cons:
- No click and collect
- No clearance sections
- Difficult to source in-store without prior research
- Some products go out of stock fast
- Not a place to scan endlessly like B&M or Home Bargains
- Can be overwhelming if you’re going in blind
Final Thoughts
Costco is a brilliant add on to your sourcing strategy, but only if you use it correctly. This isn’t a walk in and source kind of shop. It requires research first, either through website offers, deal newsletters, or tools like Arbisource and Price Drop Monitors.
When a good deal appears, move fast. Call your local store and others nearby, confirm stock, and go pick it up. This is a store where RA meets OA, and when done right, you can walk away with high ROI products that fly off the shelves.
Don’t make Costco your first stop, but absolutely include it in your wider strategy. Done properly, it’ll give you access deals that not many other sellers are taking advantage of.
