Due to the surge in demand for daily necessities, Costco has started purchasing restrictions!

With the surge in COVID-19 cases, consumers are also increasing their demand for some household necessities. However, the global supply chain crisis is still ongoing, which has caused many retailers to run out of stock. In response to this situation, some retailers have started to limit the purchase of daily necessities.

Recently, Costco Chief Financial Officer Richard Galanti said that they are restoring purchase limits on household necessities such as toilet paper, bottled water and cleaning supplies. The purpose of this is to ensure that these products are always in stock mode to cope with a series of supply chain challenges ranging from shipping delays to truck driver shortages .

Whenever the spread of the COVID-19 pandemic intensifies, there will be a wave of stockpiling in the United States. This time is no exception. With the surge in cases of infection with the delta variant virus, consumers have started a new wave of stockpiling, and the demand for products such as paper products and antibacterial wipes has begun to surge.

Galanti said Costco is imposing purchase limits on key items , including necessities such as toilet paper, towels , bottled water and high -demand cleaning products , but Galanti did not specify the specific purchase limits.

It is revealed that Costco was short of goods a year ago , and now they have a lot of goods, but delivery time is the biggest factor affecting the inventory of goods. Due to the supply chain crisis and the shortage of bus drivers, the current delivery cycle is about two to three weeks .

Like other retailers, Costco is facing rising costs due to the COVID-19 pandemic and the supply chain crisis . Port congestion and labor shortages caused by the pandemic are forcing retail chains including Costco to spend more on transportation and labor . Costco said it is paying six times more for containers and transportation than before due to the supply chain crisis .

To ensure inventory of goods , Costco said it is placing orders in advance. Galanti added that the company has plans to charter three ocean-going ships next year to transport containers between Asia and the United States and Canada . These ships can load 800 to 1,000 containers at a time.

As the COVID-19 pandemic continues to develop, American consumers' demand for these daily necessities will not stop . In the upcoming holiday shopping season, cross-border sellers must prepare their inventory in advance.

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Purchase restrictions