---
title: "Costco China Takes a Different Path in E-commerce"
description: "In April 2025, Costco announced same-city delivery across all its Chinese mainland store cities, promising delivery within 90 minutes in main urban areas. Unlike Sam's Club, Costco has not adopted a model with front warehouses, instead using a 'store-warehouse integration' approach and transparent delivery fees, reflecting a cautious and operationally pragmatic strategy."
author: "零售氪星球"
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published: "2025-04-11"
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# Costco China Takes a Different Path in E-commerce

> In April 2025, Costco announced same-city delivery across all its Chinese mainland store cities, promising delivery within 90 minutes in main urban areas. Unlike Sam's Club, Costco has not adopted a model with front warehouses, instead using a 'store-warehouse integration' approach and transparent delivery fees, reflecting a cautious and operationally pragmatic strategy.

**Source** | Retail氪星球 **ID** | LS-KXQ
When it comes to e-commerce, Costco is stubbornly not copying Sam's Club's playbook.
In April 2025, Costco membership warehouses announced that same-city delivery would be fully covered in all cities where it has stores in mainland China, promising delivery within 90 minutes for orders placed in main urban areas within service zones.
Since 2019, Costco has opened 7 stores in 6 mainland Chinese cities: 2 in Shanghai (Minhang and Pudong), and one each in Suzhou, Nanjing, Ningbo, Hangzhou, and Shenzhen, mainly covering the affluent Yangtze River Delta and Greater Bay Area.
Image source | Costco's home delivery mini-program
On the 'Costco Home Delivery' mini-program, four delivery methods are listed: **Express Delivery** (运费20元, orders placed from 9am same day); **Bulk Delivery** (free same-city basic freight, 1-5 days); **Scheduled Delivery** (运费20元, from 8am, delivered at member-selected time); **Direct Express** (运费12元, orders by 3pm, delivered next or following day).
In any case, regardless of how you order, except for bulk items, you'll pay a delivery fee ranging from 12 to 20 yuan.
As early as the end of last year, this same-city delivery service was upgraded in cities like Ningbo. An insider revealed, 'Currently, we are still collecting feedback and optimizing.'
**Cautious E-commerce Exploration**
In mainland China, where online shopping is a daily habit, Costco China's e-commerce business, which has been 'long awaited,' has been a gradual process of small steps over several years.
Image source | Costco official
Initially, it was operated by a third party. Costco authorized a designated third-party service provider, 'Tiaotiao Shopping,' to explore markets in Suzhou, Wuxi, Nantong, Ningbo, and Hangzhou, offering same-day delivery with 'free shipping on orders over 199 yuan with 10 yuan off,' and express delivery with 'free shipping on orders over 299 yuan.' However, prices on 'Tiaotiao Shopping' were 6% higher than in stores.
Although Costco stores fulfilled orders, Costco did not assume any responsibility for the quality, content, nature, or reliability of online home delivery products. The results were predictable, and by the end of February 2024, 'Tiaotiao Shopping' ceased service.
Subsequently, in early 2024, Costco launched its own online business. Initially, with over 400 SKUs, it only covered an 8-kilometer radius around stores (minimum order 299 yuan, plus 20 yuan delivery fee for same-day delivery).
A year later, in early 2025, Costco upgraded its online business. By partnering with SF Express, it expanded to city-wide delivery in cities with stores, and added categories including jewelry, gold, large appliances, and digital products.
A Xiaohongshu user revealed that Costco's home delivery service currently has two delivery providers: Meituan handles deliveries within 8 kilometers of stores, while SF Express handles broader same-city delivery.
**Why Not Copy Sam's Club?**
Costco's current e-commerce in mainland China clearly does not copy Sam's Club.
On one hand, it has not set up front warehouses close to consumers outside stores, unlike Sam's 'store + N warehouses' model. Instead, each city uses a 'store-warehouse integration' approach, where stores handle picking and packing for online orders, and two third-party logistics providers handle delivery. Of course, changes are possible in the future; an industry analyst noted, 'Costco's order volume is too small now to support front warehouses.'
On the other hand, regarding delivery fees, it hasn't adopted Sam's discount method (e.g., free shipping for orders over 99 yuan for express delivery, or free shipping for orders over 299 yuan for city-wide delivery, with weight limits varying by city). Instead, it insists on 'reasonable prices and transparent fees.'
Costco's rationale is that as an independent operation, it calculates delivery costs separately and uses transparent settlement. Products are not over-packaged, and original pallets are used to reduce costs. Members can clearly see the warehousing, labor, and logistics costs when ordering.
In other words, Costco explicitly itemizes e-commerce operating costs rather than hiding them in product prices.
An industry insider told Retail氪星球 that Costco's current approach is driven by two main reasons.
First, the mainland Chinese market is extremely competitive, and 'service' is often treated as a free added value. 'Behind this is that initially, capital was generous enough to subsidize, and later, the supply chain was strong enough to absorb these costs, but in the US, Costco's logic is different.'
Second, Costco China's operational capabilities are relatively weak, and it isn't very profitable. Adding home delivery services and incurring losses would be uneconomical. Moreover, Costco China's network hasn't formed yet, so logistics costs cannot be reduced. 'In the short term, this is an operational compromise.'
Previously, Costco Asia President Richard Chang emphasized in media interviews that Costco adheres to the membership model and keeps gross margins below 14%.
Therefore, Costco's transparent delivery fees, on one hand, avoid losses and subsidies, but to some extent, also 'highlight' the low-margin pricing of membership warehouse products, upholding membership principles.
However, for mainland Chinese Costco members who are accustomed to 'order and receive' and spoiled by free shipping, the experience and convenience of home delivery is a key factor that could seriously affect membership renewal rates.
Especially, comparison is the thief of joy. Sam's Club, which has been in mainland China for over 20 years, has a brand advantage and a mature, diverse online model tailored to local consumers.
A Sam's Club member said bluntly, 'Ensuring low product prices and adding delivery fees seems rational, but honestly, I even feel it's a loss to pay 3 yuan for delivery when my online grocery order doesn't meet the threshold. Costco charges delivery fees regardless of order amount, which doesn't align with Chinese consumer psychology.'
Many industry insiders believe that 'charging extra for delivery in domestic e-commerce is likely irreversible; it's a habit cultivated over many years, and one or two brands or channels can't change it.'
Feedback from some Costco members on Xiaohongshu indicates that the initial experience of the upgraded online delivery has been bumpy, including failures to deliver on time and complaints about receiving soon-to-expire food. Additionally, nationwide delivery for members is not yet available.
In May 2024, at a press conference for Costco's Nanjing store, Zhang Shuyun, General Manager of Costco China, revealed, 'Online services are still in a trial phase. We are continuously strengthening and improving to provide more convenience.'
Beyond understanding members, localizing product supply chains, and speeding up new product introductions, Costco still has much room to improve in the online home delivery experience that members care about. There is a long road ahead for members to truly discover its unique membership value.
According to Hu Yanan, co-founder of Yuanliu Strategic Positioning Consulting, when Costco and Sam's Club first entered China, both were high-end and not fully aligned with local customs, attracting a niche but loyal following. However, for Costco now, the more severe challenges are changing consumer lifestyles, demographic shifts, and the influx of more players... 'The Chinese market won't give Costco another 20 years, nor will Sam's Club or Metro, and certainly not Costco's shareholders and investors.'
Therefore, whether in expectations, management, products, or operations, Costco needs to find its balanced positioning as soon as possible.


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