Costco Export-Only Auctions: What You Need to Know & Exporting Tips

Are you an exporter looking for a new source of inventory? Or maybe you’ve been looking to dabble in the world of exporting and don’t know where to begin? There’s never been a better time to start than now. One of B-Stock’s largest marketplaces is now offering export-only auctions — Costco!

Costco export-only auctions are only available to export buyers. Which is good news since it reduces the auction competition on the inventory you want. And because inventory cannot be resold in the US or US territories and must be exported, you can bring your overseas customers new inventory from one of the US’s top retailers.

With enough interested buyers, the number of export-only auctions will grow! If you are looking for other categories and locations, don’t worry. You can always register to the Costco Liquidations Marketplace for all your business inventory needs. There, you can find auctions available from Costco that are not for export!

In this blog, we go over:

• Exporting benefits for business buyers
• An overview of the Costco Liquidations Marketplace
• How exporting works
• How to get started (whether you’re new or a rookie!)
• Exporting rules & documentation

Benefits For Business Buyers

What do export-only auctions mean for business buyers? Well, there are actually many benefits in it for your business. According to the Small Business Administration, “Nearly 96 percent of consumers live outside the United States, and two-thirds of the world’s purchasing power is in foreign countries.” So this gives you the chance to test out the exporting waters. Let’s cover some more benefits of exporting so you can decide whether or not to tap into this opportunity.

Here are just a few of the benefits that Costco Export-Only Auctions provide:

• Expands purchasing power – With additional avenues to export goods and make money (versus just selling in the U.S or online) you can, in theory, purchase more inventory, faster.
• Less competition on auction inventory – Since these are export-only auctions, you cut down on competition with B-Stock buyers – just the export buyers!
• Gain access to a larger market – The U.S. market may be saturated already with similar inventory. By branching out, exporters have access to markets that don’t have the same inventory on hand.
• Increases sales and profits – Selling goods and services to a brand new market boosts sales and increases revenues. Once export start-up costs have been covered, the added foreign sales increase your profitability over the long term.

Costco Liquidations Marketplace: Overview

Costco Liquidations Marketplace is a one-stop shop for consumer favorites and brand-name inventory. Registered business buyers can shop for the best customer returns, overstock, and liquidation inventory in a wide range of categories like apparel, health & beauty, home & garden goods, furniture, appliances, automotive, consumer electronics, tech, and more. There is a category for everyone!

Costco inventory, regardless of exporting or not, is a great investment for your resale business. As a registered business buyer, you can get the inventory your business needs and at a good price, too! Getting excited about export opportunities? We’ve got you covered. Learn how to start exporting if you’re not already familiar!

How does exporting work?

To export is to ship commodities to another country for sale, exchange, etc. Businesses that sell their goods and services to customers in other countries are exporting them. They are producing them in one country and shipping them to another. So in this case, your resale business would purchase Costco liquidation inventory to sell in other countries.

We will break down a few more steps involved with exporting below.

How to get started (if you’re an exporter already)

If you’re already an exporter, gathering the necessary information won’t be a challenge. If you’re brand new to exporting, you will want to see the steps in the next section!

For access to Costco Export-Only Auctions, prep these 5 things:

1. US Based Freight Forwarder Details – The name and shipping address of your US-based freight forwarder who will be exporting the product.
2. Your International Address – The international address the products will ship to.
3. Supporting Documentation – A previous Bill of Lading (BOL), Shipper’s Export Declaration or Electronic Export Information (EEI). This information validates points 1 and 2 above.
4. State-based Resale Certificate – A valid state-based resale certificate for the state your freight forwarding company is located in.
5. Costco Marketplace Registration – You must register on the Costco B-Stock marketplace in order to view auctions and start bidding. Click here to register. Once you do that, you can bid and buy liquidation Costco inventory and returns whenever you want!

How to get started (if you’re new to exporting)

If you’re brand new to exporting, we’ve got the full rundown for you! It’s worth the effort as the benefits to your business can be extremely worthwhile. Before you begin bidding on any inventory, you will want to research a couple of things first.

1. Decide whether or not a product requires an export license – Find out if the product has a specific Export Control Classification Number (ECCN) by checking the U.S. Export Administration Regulations (EAR). If a product has a five-character ECCN code, the EAR will also list one or more reasons why it is controlled. You use these reasons to help determine if you need to apply for an export license based on the countries to which you are exporting.
   • If it does not have an ECCN code, it’s not subject to control and designated as EAR99. These are usually low-technology consumer goods that do not require an export license.
2. Research destination country – Certain countries require an export license and others do not. You should also check out the list of restrictions for companies and individuals exporting certain products to specific countries.
3. Screen parties involved – Many government agencies maintain lists of people, organizations, and countries to which it is illegal to export for various reasons. Research restricted parties ahead of time. Whether or not you have a license, exporting may be prohibited.

Exporting rules and documents

In order to avoid any fines — which can be quite hefty depending on if it’s an administrative or criminal case — you will want to make sure your business is in full compliance with any rules and regulations.

Know the documentation involved

We’ve mentioned a few already — but you should brush up on all the documentation required for exporting. Depending on what your small business is exporting, you may not encounter all of these documents.

Familiarize yourself with the following: bill of lading, certificate of origin, a commercial invoice, pro forma invoice, consular invoice, dock/warehouse receipts, export license, export packing list, inspection certificate, and insurance certificate. It sounds like a lot of documentation, but remember, you’re better safe than sorry. Always keep things above board and it’ll be smooth sailing through exporting waters.

Watch out for red flags

Even products that seem harmless can sometimes be used in ways that are not intended. As an exporter, you are responsible for knowing how your products will be used once they leave the country. Here are some red flag indicators.

If you’d like a more in-depth look at compliance rules when it comes to exporting, read Export Education: Export Compliance.

Though B-Stock specializes in business-to-business liquidation, we are not experts in the exporting industry. Visit Learn How To Export for some great tools and education on exporting. Additionally, if you are located near a major metropolitan area, there is probably a U.S. Export Assistance Center near you that can provide help. It’s a resource you’ll definitely want to take advantage of if you’re just getting started!

Looking for more Costco returns? Register today!

Costco has long been a premier marketplace on B-Stock, offering a reliable source of inventory for buyers across the United States. Register now to get access to export-only inventory from Costco! Whether you’re a seasoned vet when it comes to exporting, or you are new to the game, Costco auctions are worth checking out. Your business can count on Costco’s return pallets and liquidation inventory to be a hit.