# Costco hit $33 billion in digital sales by riding DoorDash and Uber Eats to younger customers

*The warehouse club added last-mile partners to reach buyers who won't drive to the store.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-09-27.

Canonical: https://www.pops4.com/stash/articles/costco-2026-09-27t15-1
Subject: Costco
Tags: omnichannel, distribution, marketplace, last-mile, delivery partnerships

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Costco's digital sales reached **$33 billion** in 2026, growing more than **20%** year-over-year, according to Modern Retail. The warehouse operator achieved the number by extending reach beyond its physical locations through delivery partnerships with DoorDash and Uber Eats, pulling in younger customers who expect same-day delivery without a warehouse trip.

The company layered third-party delivery platforms onto its existing warehouse footprint. Members can now order through DoorDash and Uber Eats for same-day fulfillment from local Costco warehouses. The partnerships let Costco tap the delivery infrastructure these platforms already built, avoiding the capital cost of building its own last-mile fleet while accessing the platforms' user bases.

The move works because it removes the trip friction that keeps younger buyers out of warehouse clubs. Costco's core model requires a membership fee and a car trip to a suburban location. That works for families stocking a pantry every two weeks. It fails for urban renters, one-person households, and buyers under 35 who expect two-hour delivery and shop by occasion, not bulk. By offering same-day delivery through apps these buyers already use, Costco converts demand that would otherwise go to Amazon, Instacart, or a neighborhood grocer. The partnership also lets Costco test basket composition and frequency with a demographic that doesn't match its traditional profile, without changing the warehouse experience for existing members.

A small physical-product brand can run the same play by listing inventory on a platform where the buyer already shops, rather than forcing the buyer to a direct site. Identify one or two marketplaces or delivery apps where your target customer already has an account and a payment method saved. For a food or beverage brand, that might be Instacart, Thrive Market, or a regional grocer's delivery service. For a home or personal care brand, it might be Amazon, Target.com, or a specialty retailer like Crate & Barrel or Sephora that offers same-day through Instacart or DoorDash. Apply to list your product on that platform. Expect a wholesale rate between **50%** and **65%** of retail, depending on category and platform. The platform handles fulfillment, customer service, and last-mile delivery. You ship case quantities to their warehouse or, in some models, directly to a store that acts as a micro-fulfillment center.

Start with one platform and one SKU. Track cost per acquisition and repeat rate for 90 days. If unit economics work, add a second SKU or a second platform. The goal is not to own the customer relationship immediately. The goal is to meet the customer where they already transact, prove demand, and use that traction to negotiate better terms or justify building your own direct channel later. Costco didn't abandon its warehouses. It made them accessible to people who weren't coming through the door.

The broader pattern is distribution-led growth. Brands that wait for customers to find them lose to brands that show up in the buyer's existing shopping routine. The platform fee is the cost of customer acquisition. The question is whether the lifetime value covers it.

## The takeaway

List where they shop, not where you want them to shop, and let the platform's delivery infrastructure do the last mile.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
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