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Costco Leverages Technology to Expand Online Offerings

ISSAQUAH, Wash. -- Membership warehouse retailer Costco plans to leverage its existing technology to boost its online offerings in the United States and abroad.

To accomplish this, the retailer has expanded its partnership with CommerceHub, an Albany, N.Y.-based provider of fulfillment and integration solutions for retailers operating in multi-channel environments. The extension is a result of the successes Costco has achieved to date through use of CommerceHub's drop-ship supplier integration and fulfillment solutions.

"By extending our relationship with CommerceHub, Costco will continue to move forward with aggressive plans for expansion of our .com offering in the U.S., Canada and overseas, as well as stay true to our commitment of providing exceptional service to our customers," said Mike Pollard, v.p. of

Under the terms of the agreement, Costco will continue to leverage CommerceHub's Drop-Ship Master application suite to integrate new suppliers and streamline the fulfillment process for online orders. By enabling suppliers to fulfill orders directly based on requirements established by Costco, Drop-Ship Master allows the company to expand its online product selection and revenues without taking on any new inventory or risk. The application also allows Costco visibility into online orders through the delivery process, according to CommerceHub.
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