In 2017, without much fanfare, Costco rolled out a new membership perk called Costco Next, giving members access to exclusive pricing on merchandise from select manufacturers and suppliers. Today, it remains a lesser-known benefit of Costco membership, sometimes even referred to as a “best-kept secret.”
So exactly what is Costco Next…and how does it work? For answers, Bottom Line Personal turned to Kevin Brasler, executive director of the Washington, DC-based nonprofit Consumers’ Checkbook.
How Does Costco Next Work?
As e-commerce has grown, companies like Walmart and Amazon have broadened their offerings to include merchandise from a vast array of suppliers. Example: If you go to Walmart.com and search for a product that Walmart doesn’t sell, chances are you’ll still find the product on the site…just offered by a third-party vendor.
That is the model on which Costco has built its Costco Next program. There’s only so much that Costco can sell in its stores, but it wants to be able to offer its members even more variety. It does that by partnering with suppliers who make available select merchandise to Costco members.
Costco Next, however, differs from Walmart’s third-party offerings in a few keyways…
- Costco Next vs. Costco online: Whereas Walmart offers third-party products seamlessly on Walmart.com, Costo members won’t see third-party merchandise on Costco.com. Instead, Costco members must go to and search on a separate website—CostcoNext.com.
- Access: Anyone can shop on Walmart.com or Amazon.com, but you need a Costco membership to log into CostcoNext.com.
- Pricing: Suppliers who want to make their goods available on CostcoNext.com must agree to do so at prices below the “minimum advertised price,” which is the threshold manufacturers set to ensure that their products are sold by reputable companies with good customer service. So at least in theory, Costco Next deals are truly exclusive.
Who Can Use Costco Next?
There is no specific Costco Next membership or special Costco Next eligibility—you just have to be a Costco member. You log onto CostcoNext.com using your Costco member number.
What Brands and Products Are Available?
In terms of offerings, Costco Next categories are somewhat, but not wildly, robust. Costco Next suppliers offer everything from cat food and camping tents to outdoor playsets and even coffins…but not, for example, books, auto parts or school supplies. Costco Next suppliers include a few established brands such as Dell, Travelpro and Otterbox, but many Costco Next brands are up-and-coming enterprises that are using the platform to leverage their growth.
When you click on a brand on CostcoNext.com, you’re taken directly to that brand’s own online store with Costco-member pricing already applied. You complete the purchase not with Costco but with the supplier.
Important Things to Know Before You Shop
On its face, buying through Costco Next seems like a no-brainer. If the product you want is there, you can assume that you’re getting it at the lowest possible price, right? Well, not exactly.
The product mix and prices that Costco negotiates with the third-party vendors are constantly in flux and not very transparent. Result: To date, no major consumer advocacy group has done a one-to-one study to determine whether Costco Next pricing is consistently better than buying directly through the manufacturer or through another third party. A few small comparisons have been published, and generally—but not universally—buying through Costco Next offers discounts. Social-media posts from individual consumers reporting their experiences, however, with the platform are a mixed bag.
But that doesn’t mean that you should avoid Costco Next, only that you should do what you always do—shop around to make sure you’re getting the best price. At the very least, try going directly onto the supplier’s website to see what the pricing (and selection) looks like there, and then check at least one other third-party site.
Caution about returns and refunds: Once you click through to the supplier’s site, you’re purchasing from that supplier, not from Costco. Costco gets a commission on the sale, but your money is sitting with the supplier. General rule any time you purchase something: Ask yourself who gets your money and who you’ll go to if something goes wrong (say, the wrong product is shipped, the package never shows up, or the product is defective or doesn’t fit). Costco makes clear on the CostcoNext.com site that it is the supplier, not Costco itself, that handles these matters, so it is a good idea to do a search on Google to learn a little about the brand before you buy and check its ratings. Costco has a well-earned reputation for curating its offerings and striving to provide its members with good experiences, but it doesn’t hurt to do some research before pulling the trigger.
