Thousands Of Costco Items Go To B-Stock Auctions Every Week: Here's How To Bid

Who doesn't love a good Costco deal? Of course, no matter how good the deal is, Costco shoppers know that returns are inevitable. Maybe the clothes you bought don't fit, or that snack you wanted to try ended up tasting terrible. Whatever your reason, you take the product back, Costco takes your return and gives you a refund, and that's the end of the story. Or is it? As it turns out, thousands of those returned items then head to the retailer's liquidation process. There, Costco sells them in bulk to approved businesses through Costco Wholesale Liquidation Auctions: the company's official business-to-business liquidation marketplace. Operated through B-Stock, the marketplace sells everything from apparel to electronics, major appliances, furniture, toys, food, and sporting goods. That's not to suggest it's all open-box stuff, either. Costco's B-Stock auctions get their inventory from several sources beyond customer returns, including overstocked merchandise. Excited? Hold your horses. Costco doesn't treat these auctions like it does its warehouses. The marketplace is meant for businesses that intend to resell the merchandise. Anyone hoping to bid must apply for approval, which means providing a valid state-specific resale certificate (or, for international buyers, proof of business). Only approved buyers can see and bid on Costco auction lots. Creating an account doesn't guarantee that you can take part, nor is access one of the many perks of Costco membership. Costco's B-stock auctions can include merchandise that has been tried or used, all screened by Costco's Returns Depot. Items aren't tested to see if they work, but are graded visually. Grades are New, Like New, Grade A/B, Grade C/D, and Salvage. For example, new merchandise is in its original packaging; Grade A/B can include returns or unsold products; while Grade C/D can be damaged or have missing parts. If Costco approves your application, you'll see lots sold in several sizes, with pallets being a common format. Smaller LTL, or less-than-truckload, auctions typically contain one to 10 pallet spaces, while full truckloads typically contain 11 or more pallet spaces. Smaller quantities can also be sold as boxed small-pack shipments. Buyers should always check the grade before bidding to ensure they know what they're in for when the pallets arrive. One final point: merchandise bought through one of these Costco Wholesale Liquidation Auctions cannot be resold within five miles of a Costco retail store.