Costco turns to JD.com to reach more customers across China

U.S.-based membership warehouse retailer Costco Wholesale Corp. is marking its 50th anniversary this year and expanding beyond its physical presence in China. The company has launched an official flagship store on JD.com to make its membership-based shopping model more accessible nationwide.

Shoppers visit Costco’s Shenzhen warehouse in Longhua District. Photos by Wang Haolan

The online store, supported by JD Logistics, serves more than 2,800 counties and districts across China. The move comes as Costco marks 50 years since its founding and seven years since entering the Chinese mainland.

“Over the past seven years on the Chinese mainland, we have learned a lot about the market and listened closely to feedback from our members,” Prudence Jang, general manager of Costco Wholesale Corp.'s Chinese mainland division, said at a media open day at the Costco Shenzhen warehouse in Longhua District on Aug. 27. “We have continued to innovate and make changes.”

Costco staffers offer free samples of Spanish ham to members at a sampling station at the Shenzhen warehouse.

These include a new membership rebate program, a home-delivery service through Costco’s WeChat mini-program, and the launch of its official flagship store on JD.com in May.

The expansion into online channels is aimed at giving members more ways to shop, Jang said.

“At the same time, there are many things we remain committed to and will not change,” she said. “We will always strive to provide our members with high-quality products and services at the lowest possible prices.”

The JD.com launch gives Costco access to consumers in cities where it does not have a physical warehouse, while integrating its online and offline membership services.

Members can access the same member-only prices on JD.com as they can through Costco’s stores and other channels. The platform also allows customers to sign up for, renew or link their memberships.

The online store is also open to non-members, with separate pricing for members and non-members. This allows shoppers to try Costco products before purchasing a membership.

Paul Ye, warehouse manager of Costco's Longhua District store, said Costco’s product range spans categories including electronics, cosmetics and food, with an emphasis on balancing price and quality.

Costco members try out a Thrustmaster racing simulator at the Shenzhen warehouse.

Costco’s private label line Kirkland Signature is a key part of its product mix, accounting for about one-third of the retailer’s worldwide sales in fiscal 2025, according to the company. In Shenzhen, Kirkland nuts, olive oil and vitamins are among the best-selling private-label products, according to Ye.

“Through our global purchasing scale, we source directly from quality producers and cut out middlemen,” Ye said. “The savings are passed on to our members.”

Sustainability is another area in which Costco is applying its global principles to its Chinese operations.

Ye cited the packaging of kiwifruit as an example. Costco worked with New Zealand-based produce company Zespri to replace conventional plastic packaging with material made from sugarcane bagasse, a byproduct of sugar production.

Paul Ye, warehouse manager of Costco's Longhua District store, explains to visiting journalists from various media outlets how using sustainable packaging materials helps reduce the price of kiwifruit.

The change reduces plastic use and packaging costs. An eight-piece box of gold kiwifruit sells for 69.90 yuan (US$9.80).

Costco has also chosen not to sell plastic shopping bags at its stores. Instead, customers can use cardboard boxes originally used to transport merchandise.

Founded in 1976, Costco now operates more than 930 warehouses across 14 regions and has more than 130 million members globally.

As it expands online in China, the retailer is betting that greater access, localized products and a more flexible membership model will help it reach a broader customer base.

In another development, Costco officially launched its Executive Membership service in the Chinese mainland market in April. The membership costs 688 yuan per year and offers a 3% annual reward on qualifying purchases, with an annual reward cap of 7,200 yuan.