Costco takes action against cake resellers: Here’s their strategy

A video circulating on social media depicts a Costco store where a sign has reportedly been placed outlining the measures the chain will take to curb the purchase of cakes and pies due to dessert resale.

According to the announcement, all customers with store memberships will be able to purchase only 2 units of “chocoflan” and 5 units of cakes. It’s worth noting that such restrictions used to be applied only during holidays. However, Costco seems to be planning to make them permanent as a pattern of massive purchases and excessive reselling at inflated prices has been identified.

The recording showcasing the announcement with the new rules was made in the Cuernavaca branch in Morelos, so it’s expected to be implemented in certain stores only. Up to this point, the chain has not commented on the matter, nor issued an official statement about the regulations or the states where they will be reinstated. Nevertheless, the regulation has already come into effect, surprising consumers.

“Cake and pie sales are limited to a total of 5 units per member on the same day. Chocoflan is limited to 2 units,” reads the notice supposedly posted in the Morelos Costco.

Due to the high demand for desserts at the franchise, many customers were unable to purchase cakes on a regular day as items quickly sold out due to resellers buying up to 10 cakes in a single day.

The controversy ignited on social media, with some internet users supporting the rules while others expressed their anger towards the store. “The truth is that due to the resellers, the quality of the cakes has decreased,” “I think it’s a good idea because some people take up to 10 cakes,” “Very good idea because the ones we want for personal consumption are never available,” “Regardless, it’s still sales for the store,” “Since they later sell each slice for a high price,” were some of the comments shared on TikTok.

A few days later, Costco in León, Guanajuato also implemented the sales restrictions for members of the chain.

Over the past months, various videos have gone viral sharing tips and instructions on becoming a dessert reseller of Costco products, mainly on TikTok. The estimated resale price of a cake ranges from 300 pesos or more, and per slice, it starts from 40 pesos.

Franchise Cakes, Pies, and Cookies

-Banana Cake
-Chocolate Chip Cheesecake
-Lemon Pie
-Chocoflan
-Raspberry Jam Cheesecake
-Mini Carrot Cakes
-Mango-Passionfruit Cake
-Cookies
-Blackberry and Chocolate Muffins

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