Dive Brief:

• Groupon has launched a Costco-like online warehouse service called Groupon Basics, whereby shoppers can order household items like razors and diapers in bulk at discounts of about 20% to 30% under retail, the company announced Thursday.

• The service is part of Groupon’s e-commerce site Groupon Goods and, unlike Costco and Sam’s Club, will not require a membership. Free shipping is available for orders $25 and over.

• Groupon Goods, a site where Groupon sells physical goods, has been a growing part of the company’s revenue stream, growing 25% in 2013 compared to Groupon’s overall growth of 10% the same year.

Dive Insight:

Given the growth on Groupon’s retail site, it’s no surprise that the company would want to expand that segment of its business. The fact that Groupon Basics requires no membership is a bit of a risk because it leaves shoppers the freedom to roam the retail landscape in search of other deals. But Groupon Basics could also give warehouse stalwarts Costco and Sam’s Club, and even Amazon, a run for their money.