What Is a Costco Liquidation Store? (Explained for Resellers)
🏷️ What Is a Costco Liquidation Store?
A Costco liquidation store is a retail or warehouse location that sells returned, overstocked, or discontinued Costco items at deep discounts, often by the pallet or individual item.
These are not owned or operated by Costco, but rather by independent businesses that purchase liquidation pallets from official Costco auctions (like B-Stock) or wholesale suppliers — then resell the goods locally.
If you’re a reseller, side hustler, or even just a savvy shopper, these stores can be a goldmine for sourcing inventory or scoring high-value products at a fraction of the cost.
🧠 Why Do Costco Liquidation Stores Exist?
Here’s the backstory:
When customers return items to Costco (even opened!), they can’t reshelve everything. Some products are:
Slightly used
Open box
Packaging-damaged
Overstocked or seasonal
Discontinued models
Rather than letting these pile up, Costco sells them in bulk to liquidators, who then sell by pallet or truckload to third parties — like liquidation stores, eBay sellers, Amazon resellers, and discount stores.
🛒 What Can You Buy at a Costco Liquidation Store?
Depending on the store and how they source, you might find:
| Category | Examples |
|---|---|
| Home & Kitchen | Air fryers, blenders, dinnerware, pots & pans |
| Furniture | Shelving, accent chairs, desks, patio sets |
| Electronics | Monitors, printers, speakers, TVs, smart home devices |
| Seasonal Goods | Holiday décor, fans, heaters, gardening tools |
| Baby & Kids | Toys, high chairs, baby monitors, strollers |
| Health & Personal | Massage guns, shavers, hair dryers, skincare tools |
| Outdoor & Garden | Pressure washers, patio umbrellas, storage bins |
💡 Many items are open-box or have slight cosmetic defects, but the savings are huge — often 30–70% off retail.
📍 Where Can I Find a Costco Liquidation Store?
Costco liquidation stores aren’t always easy to find because they’re independent businesses, not official Costco locations.
Here are some tips to track them down:
🔎 1. Google Local Search
Search for:
“Costco liquidation store near me”
“Buy Costco returns [your state]”
“Liquidation warehouse Costco”
“Overstock pallets Costco [your city]”
📱 2. Facebook Marketplace & Groups
Many stores promote deals through live videos, flash sales, and even bundle offers. Join local reseller groups and ask where others shop.
📍 3. My State-by-State Map
I created a full directory of Costco liquidation stores organized by U.S. state:
👉 Check the full article here →
💼 Is It Worth It for Resellers?
Absolutely — if you shop smart.
As a sourcing agent, I’ve worked with boutique owners and Amazon flippers who routinely stock from these stores. Here’s what makes them great:
✅ Pros:
No business license needed
Inspect items before buying
Great for testing what sells in your niche
Instant inventory (no shipping wait)
❌ Cons:
Stock is inconsistent
You need to sort through for gems
Some stores don’t allow returns
Limited quantity per item (not ideal for scaling fast)
🧠 Pro tip: Bring a barcode scanning app to quickly check eBay or Amazon resale values.
Join The Liquidation Insider
— Free Weekly Auction Alerts & Supplier Updates
Every week, I share verified liquidation websites, pallet auctions (including Costco, Walmart, and Target), and expert bidding tips — straight from real sourcing experience.
💬 Personal Story: My Client’s $1,200 Profit Week
One of my newsletter subscribers (a stay-at-home mom) bought a $150 pallet from a Costco liquidation store in Texas. It had a Ninja blender, Instant Pot, a barely-used office chair, and a few small home gadgets.
She sold everything locally on Facebook Marketplace in less than a week — making over $1,200 in sales.
Now she’s a regular customer and uses her earnings to grow a part-time reselling business.
📦 Don’t Want to Visit a Store? Buy Online
Not all states have liquidation stores. But you can still buy Costco return pallets online.
👉 Start Here:
Get my Premium Liquidation Directory — I’ve curated resellers (including Costco pallet sellers) that ship directly and are beginner-friendly.
🧭 Final Thoughts
A Costco liquidation store can be your secret weapon for sourcing profitable inventory or grabbing crazy deals — no reseller license required.
But success depends on being consistent, checking stock often, and knowing how to spot high-resale-value items.
