Montage of a Costco supermarket and a thoughtful man
CONSUMER AFFAIRS

There's a Cheaper Way to Shop at Costco and the Company Won't Like It

The mobile Costco: The cheapest way to shop without a membership that could worry the store

Costco is known for its competitive prices and membership system. However, a new phenomenon could change the way people shop there. A viral video on social media has shown a new initiative that has surprised many: a van called Cos2Go, which offers Costco products without the need for a membership. This alternative way of shopping could be very attractive to consumers, but it's likely that Costco won't like it at all.

Shopping From Costco, Outside of Costco

The idea is simple. A man customized his vehicle to offer Costco products directly to consumers, without the need for them to be members. In the viral video, he shows how he places orders at Costco on Thursdays and then distributes the products on weekends.

Storefront with the Costco Wholesale logo.
Costco won't like it too much | Instagram, @costco_spain

This business model is based on resale. Products that are normally only available to members are sold to those who are not willing to pay Costco's annual membership fee.

For many consumers, this system is a much more affordable option. Costco charges an annual fee for users to access its discounts and exclusive products. However, not everyone is willing to pay for the membership, especially if they don't plan to buy large quantities of products. That's where Cos2Go becomes an attractive alternative.

Costco Faces Something Already Known

The resale of products is not new. It has been seen how some people dedicate themselves to buying products at low prices and then sell them at higher prices. This model has been popularized by the scarcity of limited edition products and by brands that limit the number of available items. Brands like Nike and Adidas have seen how their products, especially limited editions, are resold at much higher prices on secondary platforms like StockX and GOAT.

What sets Cos2Go apart from other resellers is that it offers Costco products, which normally require a membership to access. By doing so, it is challenging the membership system that has been the foundation of Costco's business for years. This model could make many shoppers wonder if they really need a membership if they can get the same products through a reseller.

Costco, in Question

Comments on social media show that many users applaud the idea. They love the possibility of getting Costco's popular products without having to pay the membership fee. This type of initiative also opens the door to a new type of consumption, where exclusive products are no longer so restricted.

For Costco, this type of resale could be a threat to its business model. The store has based its success on the idea that people register as members to access low prices and exclusive products. However, with initiatives like Cos2Go, that exclusivity could be compromised.

Moreover, this form of resale has the potential to change the rules of the game in terms of competition. If more people choose to buy from resellers instead of acquiring a membership, Costco could lose a part of its customer base. In such a competitive market, losing customers could be a hard blow for the store.

➡️ Consumer Affairs

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