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How to Resell Items from Costco And Turn a Profit

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Many people are trying several side hustles to make more money. But some of them don’t know where to start.

Luckily, if you’ve found this article, as we’ll answer your questions if you want to resell items from Costco.

Is it legal? Can it secure a lucrative side income? Keep reading to find the answers to your questions.

Is it Possible to Resell Items From Costco?

Reselling wholesale products is one of the most popular trends people try to make more money. And reselling items from Costco is quite popular because people can benefit from Costco discounts.

Costco has several types of membership levels that offer discounts and savings when customers buy certain products. But even without the membership, you can definitely buy from the Costco wholesale section for a discounted price.

Many people buy products and then realize that they don’t need all of them or they won’t be able to use them before the best-by date. Costco shoppers are usually tempted by the discounts, so they can often buy more than what they need.

People can resell these products online and benefit from the price difference. Most people sell these purchased Costco items on Amazon, but some can also list them on Etsy or eBay.

What Kinds of Items From Costco Sell Well?

Doing your research before buying in bulk from the store or the Costco website is essential. This means studying the availability of items, their retail price, and how often they sell.

Otherwise, you won’t be able to generate enough income to keep this business idea going.

In general, some Costco items have a better resell chance, so you might want to invest in buying them in bulk. These items are always cheaper at Costco or aren’t that available elsewhere.

Moreover, you can benefit from selling things you no longer need instead of storing them.

  • Toilet paper is one of the most popular items sold by Costco. If you can buy it in bulk, you can sell it on Amazon or other online stores.
  • Costco travel products and benefits are available to members. After paying the membership fee, you’ll gain access to exclusive travel deals that you can sell to friends, family, and local travel shops.
  • Food like spices, maple syrup, instant noodles, Nutella, hot dogs, hickory smoked bacon, and precooked rotisserie chicken can be sold to local diners and food stores in your town.
  • Major appliances are usually offered at a significant discount during holiday sales. People can buy them and then resell them for a substantial profit.
  • Gasoline is another popular item, and you can make money reselling it to people in rural areas, especially the ones that have no access to Costco.
  • Pre-bought personal products can be sold on the company’s website in an attempt to control refunds.

What is the Value of Items From Costco?

Some items can have a high resell value when bought from Costco. These items are pretty popular and are significantly cheaper at Costco. This means that you’ll be able to resell them for a significant profit.

In general, things that don’t require special storage and can be stored in bulk with no issues will have a high resell value. You don’t have to endure extra costs to keep them in good shape, and you can successfully resell them on Amazon.

However, this doesn’t apply to all items. Some items require special storage, like freezing. Others will go bad, so you have to resell them immediately. These items might not represent a good side hustle opportunity.

Do Items From Costco Lose Value Over Time?

Some Costco items might lose value over time, and you should avoid buying them in bulk. These items are better bought from the store, especially since they’re more affordable.

But if you buy them for the resell purpose, you might lose money. Here are some examples.

  • Fresh produce will go bad in no time. So, unless you’re sure you can resell it on the same day, it’s not a good idea to buy it in bulk.
  • Cooked food goes bad within hours. You don’t want to buy this in bulk unless you know you can use it in your catering business or local diner.
  • Some travel packages are only available for a specific amount of time. If you’re unable to resell those, you’ll end up losing money.
  • Kirkland clothing items are sold exclusively at Costco. But the collection is limited, so you might end up with items that no one is willing to buy.

Things to Consider When Reselling Items From Costco

As with any business decision, there are several considerations that you need to consider if you want to resell items you bought from Costco.

1. Restrictions

Restrictions apply to products, brands, and categories. Some products aren’t to be sold outside Costco. The company might restrict reselling some exclusive brands in multiple places.

Some suppliers are banned from reselling their products except at Costco. You may also need a professional seller account to resell these products on Amazon or any other marketplace.

In addition, some products are only to be used within a specific period. So, if you’re attempting to resell products, ensure they’re not past the expiration date.

2. Profit Margin

Items might be offered at a lucrative price at Costco, but this doesn’t mean you can gain money by selling them. First, you must ensure that the price difference is high enough to allow you to pursue this business opportunity.

You can use an app like the ScoutIQ app to scan the prices of the items you want to sell. If there’s a big price difference, you can definitely try selling them on Amazon.

3. Permissions

Amazon FBA or Fulfilment by Amazon can help you resell your products to multiple shoppers. But you must ensure you have the proper permissions to resell these products.

You should contact the manufacturer to obtain these permits. You’ll have to search for niche products or products popular as per Google trends to offer something unique. This will help you find the right items to sell for a profit.

Consult a lawyer to avoid any legal issues. You don’t want to get into trouble for reselling items that were only supposed to be sold by Costco.

4. Consistent Supply

In order to have a successful business, you must ensure that you have a consistent supply of the Costo items you want to buy. Costco sometimes restricts selling several items in bulk unless tax-exempted non-profit organizations buy them.

So you might need to check this out. You might not be eligible to benefit from Costco wholesale donation offers. You might also want to see if you can maintain good relationships with suppliers.

5. Handling and Storage

You should build your business model to guarantee it can be profitable. Do you have someone who can handle shipping issues? Can you qualify for the Amazon FBA to have all the shipment issues sorted out?

Moreover, you must have enough space to store your items until they’re shipped. Finally, you need to invest in building a good customer care reputation. This involves describing your items accurately, handling complaints, and responding to customer dissatisfaction promptly.

Where to Resell Items From Costco

Before you attempt to resell products from Costco, you should ensure that you have a secure supply of high-quality products currently in high demand. Luckily, you can resell your Costo pre-bought products through several platforms and marketplaces.

1. Amazon

screenshot of the Amazon homepage

Amazon is the first option people consider when attempting to resell Costco items. As a matter of fact, after a bit of research, you’d find plenty of Costco’s signature brand, Kirkland, sold on Amazon.

What Makes This Option Great

Reselling items from Costco on Amazon is straightforward and requires no start-up costs. It’s a vast marketplace with plenty of product categories, so you have an excellent opportunity to resell whatever you buy from Costco, from board games to body care products.

Moreover, some items have a significant price difference, which means you can profit by reselling various products.

  • Fees: $0.99 per item for individual sellers or $39.99 monthly for professional sellers. Both fees should be added to additional selling fees.
  • Payment Methods: Amazon accepts debit and credit cards, Business Prime American Express cards, Business American Express, an invoice, or you can add your personal or business checking account.

2. eBay

screenshot of the eBay homepage

There are two ways to resell Costo items on eBay. The first one is to sell them directly on your eBay account. The second one is to drop ship by asking Costco to ship the product to the customer directly.

Once you have created an account and verified it, you can list your items as a seller. Sellers benefit from the price difference because Costo offers several items at a lower price.

What Makes This Option Great

If you don’t have a place to store the items you buy from Costco, you can shop them directly from the website. You’re not breaking any laws and won’t end up with unwanted items you couldn’t resell.

  • Fees: eBay charges two types of selling fees, one when you list the item and the other when you finally sell it. These fees vary according to the category of the item you’re listing.
  • Payment Methods: You can use your debit and credit cards or a linked payout bank account, so the fees might be deducted from your sales revenue.

3. Etsy

screenshot of esty homepage

You can start a seller’s account for reselling wholesale products on the Etsy website or through the app. If this is your first time, you can start your own Etsy shop. Otherwise, you can choose Listings from your shop to add a new item.

What Makes This Option Great

Etsy is a growing platform with millions of active users. Moreover, Etsy invests in its marketing strategy to increase the number of potential buyers.

  • Fees: Etsy charges  $0.20 per item once you list it. After that, it charges 6.5% of the total order amount once a purchase is made.
  • Payment Methods: You can pay using your credit card. Once you have sold some items, you can use your Etsy credit to pay the fees.

What You’ll Need to Resell Items From Costco

Reselling items from Costco doesn’t need much preparation, but you should do the following to ensure you’re ready to start this side business.

  • Make a list of the items you think you’ll be able to sell after guaranteeing a profit margin.
  • Get all the permissions needed to see if you’re eligible to resell these items.
  • Maintain good relationships with suppliers to guarantee a consistent supply of your Costco items.

How To Resell Items From Costco: Step-By-Step Instructions

You don’t have to invest a lot of money to be able to resell Costco items for a profit. Here are the proper steps to follow.

1. Do Your Research

Choose the products you list for sale based on marketing trends, and ensure you’re eligible for reselling them.

2. Wait for Deals

Costco offers significant savings, so wait for special deals during the holidays to get items for a discounted price.

3. Choose Your Platform

There are several online platforms available, so pick the most appropriate one to sell your items based on the pros and cons of each one.

4. Pick the Right Price

Compare the item’s current price offered by other sellers and choose something that gives you a competitive edge.

5. Ship your Items

Once you’ve received an order, ensure you have all the handling and shipping sorted out, whether you’ll ship items directly from Costco or your warehouse.

6. Build Your Brand

Describe items accurately so that people can trust your brand. Respond to customer issues and complaints promptly to improve your shop’s reputation.

Can You Make Money Flipping Items From Costco?

It’s possible to make money from buying items from Costco for the sole purpose of reselling. Although some people resell the items they purchased from Costco because they won’t use them, some buy products intending to sell them for a profit in what is known as retail arbitrage.

What is a Costco Resale Business?

This business model is based solely on buying wholesale or discounted products from Costco and reselling them for a profit. It’s an excellent idea for starting a retail business but has some disadvantages.

Pros of a Costco Resale Business

  • You have access to different product categories.
  • Costco’s membership grants access to special offers.
  • You can ship directly from Costco.

Cons of a Costco Resale Business

  • You might not be eligible for reselling some items.
  • You need space to store your items until they’re sold if you’re shipping them.

Frequently Asked Questions

What is the Best-Selling Item at Costco?

Toilet paper is the best-selling item at Costco. The store sells more than a billion products every year, making it an excellent product to consider if you want to make money by reselling Costco items.

Why Can Costco Sell Cheaper Than Other Stores?

Costco offers cheap items because it has its own brand, Kirkland. Moreover, it doesn’t have a fancy store design and buys products in bulk from suppliers. This way, it can pass on the savings to its customers.

Similar Tutorials to Check Out

There are several good ideas to guarantee an easy income to try out.

  • Resell Things From Alibaba: Alibaba offers several cheap yet high-quality items, and you can sell them on eBay or Amazon.
  • Resell Things From Walmart: Although there’s no rule against reselling Walmart products, Amazon lists restrictions on some brands.
  • Resell Broadway Tickets: Etsy is one of the best platforms for reselling Broadway tickets you no longer need. But you can also list them on other marketplaces like Vivid Seats.

Wrapping Up

Securing a side hustle is becoming more popular every day, and people choose Costco because it offers discounted products that people can resell for a profit.

Tell us your thoughts in the comments, and share this article with a friend. You might offer them the opportunity to make thousands of dollars.

Leave a Comment

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