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Costco Tests Kudos Diapers Online, Bypassing Warehouse Shelves

The warehouse giant is using its website to test premium baby products without sacrificing valuable shelf space.

Costco Wholesale is selling premium cotton-lined Kudos diapers exclusively through its website, a move that tests demand for higher-priced baby products without committing scarce warehouse shelf space. The online-only listing signals the retailer is using its e-commerce platform to trial niche brands before risking floor inventory.

Packages start at $47.99 for size 1, breaking down to roughly 34 cents per diaper. Sizes run through 6. Shipping and handling are included, with delivery estimated at five to seven business days, according to Costco’s website. That price point sits well above the bulk rates parents expect inside the physical warehouses, where Kirkland Signature, Huggies and Pampers dominate the aisle.

Kudos replaces the standard plastic liner touching a baby’s skin with 100% cotton. The manufacturer states the diapers are totally chlorine-free and OEKO-TEX Standard 100 certified, formulated without fragrances, lotions, natural latex, parabens or phthalates. A patented DoubleDry technology uses two absorbent layers engineered for more than 12 hours of leak protection.

Amrita Saigal, an MIT-trained engineer and former Procter & Gamble employee, founded the brand to build disposable diapers using more cotton and less plastic. During an October appearance on The World’s First Podcast, Saigal said the company has sold more than 100 million diapers and is on track to generate over $30 million in revenue in 2026.

Diapers on shelves during the grand opening of a Costco Wholesale store in Kyle, Texas, US, on Thursday, March 30, 2023. (Jordan Vonderhaar/Bloomberg via Getty Images / Getty Images)

The arrangement mirrors how big-box retailers increasingly use digital storefronts to expand assortment without disrupting their high-volume warehouse models. Costco received $184 million in tariff refunds recently, stating most would go toward lower prices—a margin dynamic that makes introducing a premium-priced diaper into physical stores a calculated risk.

Costco has not publicly confirmed whether it plans to bring Kudos diapers to its physical warehouses. FOX Business asked Costco if there are plans to offer Kudos to shoppers at their warehouse stores, but they did not immediately respond.

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