Costco is the latest retailer to get the go-ahead to sell goods online.
But the Costco store in Los Angeles is a first.
The store has been authorized by the California Department of Consumer Affairs to sell the goods at an “excess retail price” of $150 per item, according to a letter sent Tuesday to Costco by the state agency.
That means customers can buy items for about $20 less per piece than they would pay at a local store, according a statement from the department.
But it also means Costco will pay a $50 premium for every item on its shelves.
“The Costco store is an excellent option for customers to buy and sell online because the store is located in a shopping center,” said Costco spokeswoman Andrea McBride.
“Our employees are trained to deal with the needs of shoppers who visit our store.”
The store will be open Tuesday, according the department’s announcement.
The agency issued a statement to VICE News saying it was a matter of regulatory policy and that the Costco’s “policy of offering discounted products is in accordance with the California law.”
The California Department, which oversees retail, said the Costco was a “specialty” retailer that was subject to “procedures designed to mitigate the potential for abuse.”
“The California Department has been aware of Costco’s plans for months and has taken measures to mitigate any risk of abuse,” said a statement issued by the department, which also noted that the store was a major retailer in the state.
Costco spokeswoman Sarah Smith said the company was “reviewing the process,” but did not provide further details.
The Costco store has also been criticized for charging “fees” for its online ordering, but the department did not say what those fees were.
“Costco’s policies, practices and procedures are consistent with the laws and regulations in California,” the department said in a statement.
“We have no reason to believe that the current Costco policy violates any laws or regulations.”