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Costco Dropshipping Guide (2024 Update): Is It Really Worth It?

By: Joel & Josiah
costco dropshipping guide

With drop shipping, an online retailer can have a third party—typically a supplier—handle product procurement, inventory management, and distribution.

If you want to try your luck in this drop shipping business, you may want to find a reliable supplier, such as Costco.

The business model of the well-known American wholesaler Costco is unlike conventional retailers, as they rely less on sales of goods and more on membership fees to generate income. Because of their low-profit margin, they can provide competitive prices and excellent in-store and online sales.

But can you really dropship with them, or is Costco not the right fit?

Let’s find out.

Disclaimer:
This Costco Dropshipping Guide review has been thoroughly researched with information and testimonials that are available to anyone in the public. Any conclusions drawn by myself are opinions.
Numerous products
Great flexibility
Offers discounts
Costco doesn't support drop shipping
Reports of canceled orders
Time-consuming and challenging

Why Listen To Us?

My name is Josiah, and this is my Dad, Joel.

Together, we make up the team here at Scamrisk.

If you’ll let me bother you for two minutes, I’d like to quickly explain why I’m even here writing this review.

In early 2020, I had just graduated from college & had no real career prospects.

I knew I was destined for something more, but I had no clue how I was going to make it happen.

I had this sinking feeling in my gut all the time… like the “big man upstairs” had accidentally given me the version of life where I’d be mediocre forever, instead of the one where I was, ya know – happy & fulfilled.

Anyway…

I had fiddled around with some different online businesses in college:

Some random MLMs, a bit of affiliate marketing, a (failed) dropshipping store or two, all the usual suspects.

Even my dad had been involved in MLMs back in the day… selling knives & other random nonsense people (probably) didn’t need.

All I really wanted was to find something that was going to actually work for me.

Maybe those things had worked for others, but for me it all turned up a fat “0” in the bank account department.

So I searched! And searched… and searched… and searched…

And eventually, I somehow stumbled upon a program that promised to help me build an income online (read about it here if you’re curious).

I didn’t really want to be “rich”.

The thought of making a reliable $5K per month & not having to worry about clocking in to a 9-to-5 ever again was all I needed.

Sure, there were people in the program doing high-6 and low-7 figures per year… but that wasn’t what I was out for.

I just wanted to provide freedom for myself, and if I was lucky, take my family along for the ride.

Fast forward a few days and a few phone calls & I was enrolled!

Here’s the first “money making website” I put up:

I built that site in 2020, and it still makes me $1,500 per month. It’s a basic 5 page website I built based on a template the program provides.

The best part to me? My dad and I get to do it all together!

So between the:

  1. Ease of reaching $5-$10K per month in income online
  2. Straightforward-ness of the system to do it
  3. Fact that I get to do it w/ my family

Is why I recommend local lead generation as my #1 business model for making money online.

Sure, it takes some work and dedication – but anyone that tells you that there’s a business out there that requires no work is selling you a lemon.

I’m not saying you need to sign up for the same program I did, but I would definitely recommend giving the business model a peek!

Contents

Costco Dropshipping isn’t too different from most dropshipping platforms.

Sure, their marketing makes some great promise you haven’t heard from dropshipping gurus, but at the end of the day, no magic bullet overcomes the massive pitfalls of this business model.

Let’s get something clear: 

There is NOTHING passive about dropshipping, no matter how well most course creators sell the dream.

If you want that travel-the-world-making-money-while-you-sleep-laptop-lifestyle, dropshipping isn’t for you.

To run a successful dropshipping business, you need to be constantly on the lookout for new products.

Scouring the internet for hot trends and trying to find the next fidget spinner will take hours out of your day.

Not to mention, it’s not enough to just have the hot new product…

You also need to get the customers.

That means ads…

Lots and lots of ads…

Testing, tweaking, targeting, spending thousands if not tens of thousands of dollars before breaking even.

Not to mention, Facebook hates dropshipping, meaning one of your top traffic sources could shut you down at any time.

All of this leads to a very stressful life, not a lot of money, and a lot of time wasted.

Time that could be better spent so you can actually live the life you want.

Now, what if there was a way you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Physical Products
  • Low Margins
  • Long Wait Times
  • Angry Customers
  • Thousands of dollars testing different ad campaigns

An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day running ads, researching products, and trying not to get banned by whatever platforms you’re using?

TESTIMONIAL-STILL-GETTING-PAID

If that sounds like something you’d be interested in, check out Digital Real Estate.

This is nothing like dropshipping, and that’s probably a good thing.

However, if you’d still like to know more about Costco Dropshipping, keep reading.

What Is Costco Dropshipping?

what is costco dropshipping

Multibillion-dollar wholesale and retail giant Costco is headquartered in the Seattle suburb of Issaquah. In April of 2023, the firm’s estimated net value was $220.42 billion, and it ran 849 distribution centers across the Americas, Asia, and Europe.

In case you’ve stumbled upon this guide and are feeling very lost, here’s a definition of dropshipping: a distribution technique that allows online merchants to sell goods without having to stock or store them.

When a customer purchases from your online store, the order is instantly transmitted to a network of third-party shops that take care of the rest, such as packaging and shipping.

The difference between your retail and wholesale prices will be your profit.

Costco doesn’t actively promote or provide any form of support for drop shipping. However, with the right resources, online merchants may dropship Costco products to their customers.

One of the wholesalers you might employ for your dropshipping store is Costco, since buyers need to join the warehouse to gain access and make purchases. This is achieved through direct sourcing and efficient inventory management techniques.

What’s Inside Costco Dropshipping?

costco products

A Myriad Of Products

When you use a major distributor like Costco, you can access thousands of dropshipping products and stand out from the crowd with exclusive offerings.

Moreover, whether you’re selling multiple niches or just want a diverse product range in a single specialty, Costco can meet your dropshipping demands.

Fast And Reliable Shipping

You may offer your customers fast shipping by stocking up on high-quality products from Costco, which take only three to five days to arrive. Customers’ expectations about when they’ll receive their orders are crucial to running a successful business.

Great Customer Support

costco customer service

Costco uses a lot of American suppliers, making their customer service more reliable than some cheaper resources out there. You can count on Costco for assistance in the event of order cancellations, returns, or shipping or tracking issues.

How Much Does It Cost To Start Costco Dropshipping?

costco how much does it cost

To get your dropshipping business off the ground, you’ll need at least $200. Up-front expenses consist of the following:

  • Website hosting and maintenance costs $29 per month.
  • The cost of automation software is $27 per month.
  • Domain registration costs $9 per year.
  • $5 to $15 for product samples
  • Minimum of $100 for marketing.

Tools For Costco Dropshipping

Importify

Dropshippers can use Importify to source and sell products from Costco and other stores like Walmart, Wish, and AliExpress, in addition to the more common ones like Alibaba, AliExpress, Amazon, Etsy, Snapdeal, Taobao, and Amazon.

The program can also automate tasks like order fulfillment, pricing, and product personalization.

AutoDS

Dropshipping might be a complex operation, but with AutoDS, you can automate many of the steps. Drop shippers can quickly and easily add Costco products to their online Shopify stores using this app.

AutoDS automatically adjust the price for your shop to maximize your profit. If a product you sell on your eBay store comes in multiple variations, you can easily import them from Costco using AutoDS.

Is Costco Dropshipping A Scam?

Scam or Legit

So, is Costco Dropshipping a scam? Not technically. You can make money with this company, but it’s definitely not as easy as they make it sound.

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – you need to do a ton of volume to make any real money.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months, $3-5k in the hole on ads (because that whole “get started with $5 a day” thing is total BS) and then your reward is 15% profit on a $12 product (which comes out to $1.80), it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Real Estate

And, unlike dropshipping, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

Saying goodbye to our job

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.

Are There Alternatives To Costco Dropshipping?

Top 5 alternatives

Yes, there are plenty of Dropshipping programs and resources to choose from if you want to pursue this business model.  Here are just a few:

  • Spocket Dropshipping
  • Dropshipping Titans
  • 100K Blueprint
  • Oberlo
  • Biaheza Dropshipping

What Is My Top Recommendation For Making Money In 2024?

digital leasing

Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.

While there may be no “perfect business”, the research IS conclusive:

Digital Real Estate is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

testimonial BAM jump all in

2) You Own & Control EVERYTHING: With dropshipping, you don’t really own anything.

You have no control over the quality of products. You don’t even own the products because they go straight from the supplier to the customer.

Yes, if you’ve got a Shopify store, you technically own that. But if every ad platform suits you down, you’ve got a store with no customers. Which is literally worthless.

With Digital Real Estate, you own the assets, which means you have all the power and all the control.

Feeling Blessed

3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

Testimonial leadgen marketing

4) No Inventory: Ok, so technically you don’t have to worry about inventory since you’re not filling up your garage or a warehouse with products.

But, you still have all the headaches of a physical products business.

Since most dropshipped products come from China, you already have a 2-3 week wait time from when a customer places an order.

But right now, with global supply chain issues, your customers would be lucky to get anything in less than a month.

Imagine finally landing your first customer after months of experimenting, and then getting hit with a refund request or chargeback because they had to wait 6 weeks to get their order.

With Digital Real Estate, a 100% online business, you never even have to think about that risk.

done deal digital real estate

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with dropshipping, you’d have to double your inventory, your profit margins, OR your average order value. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

winning big

6) Make Money Helping Real People: This part is what makes it all worth it. 99.9% of the time, dropshipping provides no value to anyone but the seller.

In a lot of cases, it has a negative impact on the customer because of poor product quality and an overall bad experience (i.e. waiting 6 weeks to get your order).

And that makes it pretty hard to sleep at night.

But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:

Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

take the pen

Now, the choice is yours. You could continue browsing, looking at opportunities like Costco Dropshipping which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.

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#1 Business Recommendation

We each make around $10,000 per month with the help of this system.