Costco Distributors

costco distributors

Costco Distributors – How to Get Your Product Into Costco

If you want your product in Costco, it is crucial that you understand their standards. They require competitive prices and durable packaging as well as proven track records – not to mention hard bargaining power as a Costco Distributor!

Costco stands out from traditional retail by selling directly to consumers without using middlemen – an approach which helps them maintain low inventory levels and cut warehouse costs.

Costco Distributors offer a variety of goods

Costco’s Supply Chain is at the core of its success. They are one of the few retailers who focus heavily on product quality to drive demand and customer loyalty, which allows them to compete against larger box competitors like Walmart and Amazon by offering large wholesale ranges of high-quality goods at significantly reduced prices. Furthermore, Costco utilizes strategically located warehouses and distribution centers that reduce property costs; additionally they employ an “all at once” supply chain management approach whereby items arrive directly from suppliers without going back through another step in between; this creates significant efficiency savings in each store by only receiving goods which they intend on selling themselves – maximizing efficiencies in each store that result from direct deliveries of only those items which they intend to sell themselves!

Costco employs various strategies to manage its inventory, including limiting perishables and increasing purchase volume from each vendor. Furthermore, Costco utilizes an advanced warehousing system which communicates between warehouses, stores, suppliers and suppliers in order to increase efficiency while simultaneously decreasing storage space requirements. Costco also utilizes depots as transfer points that directly deliver products into stores, saving both time and money through “cross-docking.”

Costco faces the daunting challenge of keeping its costs and margins under control while remaining profitable. Although they do remain an efficient business, competition from warehouse clubs, supermarkets, discount chains, department stores, neighborhood bodegas, millennials in particular tend to shun shopping warehouse clubs despite efforts by Costco to grow membership numbers among this demographic.

Costco strives to maintain its competitive advantage by continuously reviewing and refining its supply chain. Along with cutting costs, its main objectives are increasing revenue while decreasing customer returns; expanding e-commerce capabilities; creating a culture of employee empowerment and satisfaction within its organization – these all comprise core components of its values that build the foundation for future success; in addition, Kirkland Signature stands as a source of strength that has enabled outstanding growth during recent years.

They focus on impulse buys

Costco’s business model is founded upon American consumers’ mindset of more-is-better. Its unique pricing and warehouse design facilitates impulse shopping that distinguishes it from food, drug, mass, and convenience retail competitors. Costco aisles feature everything from gum packs to 80″ 3D televisions; giving customers an opportunity to browse for items they may have overlooked in traditional grocery stores.

Costco employs smart supply chain decisions to lower costs. Redesigning product packages to maximise their fit in a truck and using cross-docking to reduce warehouse overheads are two methods they employ in keeping costs under control. They also utilize an inventory management system called EFIM which communicates real time between all warehouses while managing inventory across them, giving greater control of their supply chain while speeding delivery time of products to each location.

Costco stands out among competitors through its cost cutting strategies and high-quality customer service and generous return policy, both of which help foster customer loyalty and boost membership numbers. Furthermore, their lack of advertising allows them to maintain lower prices than their rivals.

Costco stands out among retailers by not fully adopting e-commerce. Instead, this retailer focuses on its members and creates an experience they cannot duplicate online – this strategy has paid dividends: their US sales have experienced compound annual growth at 7.2% annually!

Costco boasts an expansive presence across international markets. Their diversified business model has helped offset economic slowdown in both the United States and other global economies, with their low costs and large sales volume making them one of the world’s most profitable wholesale clubs.

Costco stands out as an unparalleled value retailer, providing top-of-the-line items at unbeatably low prices. Customers love browsing its aisles; in fact, many leave with full carts and buyer’s remorse yet remain completely content with their purchases.

They drive hard bargains

Costco employs an aggressive low price point strategy with high volume sales. Their inventory management system enables them to sell items faster than competitors while keeping prices low; this is particularly vital when selling perishable goods such as fresh produce and meat; plus it helps guarantee that Costco meets customers’ needs at all times.

Costco employs an advanced EFIM system to make this possible, which enables it to monitor and control inventory in each warehouse across the country. Furthermore, its ability to send and receive instantaneous updates enables real-time inventory updates reducing manual checking while increasing efficiency. Lastly, their distribution center design and cross-docking allow them to save on shipping costs by shifting inventory between locations as necessary.

Costco uses this approach to keep overhead costs down, passing on savings to its members in the form of bulk discounts and additional benefits such as discounted contact lenses and travel packages; plus members have access to an expansive library of books and videos. This fosters loyalty while drawing in new members.

Costco’s unique business model makes them more resilient against e-commerce threats, including Amazon. Instead of relying on advertising alone to attract customers, Costco tries instead to draw them in through services and treasure hunt experience. Furthermore, its employees receive more stable income, leading to better customer service and increased employee retention rates.

When pitching to Costco buyers, make sure that you highlight its key selling points. They want something that sets it apart from competitors such as lower pricing or special packaging – such as being willing to carry fewer products in order to increase sales.

As part of your preparations to meet buyers, visit a Costco store to familiarize yourself with what products and services they carry. Make sure you understand their product lines and market, bringing samples as you may only get one chance at making your presentation!

They are a membership warehouse club

Costco is driven by their goal to offer large wholesale portions of various products at the lowest possible cost, providing value to their members while simultaneously keeping prices down. They strive to make returns easy for their customers; consequently they offer one of the most generous return policies among warehouse clubs. They have also integrated supply chain operations so as to reduce unnecessary costs like plastic shopping bags and excessive shop floor staff costs.

Costco maintains an expansive list of suppliers, but only works with brands with proven sales and long-lasting packaging. When considering new products, Costco takes great care to make sure it will sell well in bulk; often offering roadshows for new or small brands to sell their product in designated areas before taking it national.

Costco’s unique business model gives them an advantage when it comes to perishables. Because the company only has limited storage space, forecasting and estimating stock requirements based on sales history and environmental factors is critical in order to meet customer demands effectively. Unfortunately, this task can be very complex, and constant monitoring must take place so as not to run out of inventory before meeting customer demands perfectly.

Costco manages its supply chain efficiently with the aid of its Enterprise Financial Information Management (EFIM) system, which enables real-time updates on inventory across its locations during holidays and peak seasons – such as Christmas. Furthermore, Costco uses cross-dock distribution technology to limit how often its inventory needs to be transferred between warehouses in order to reduce inventory management costs while simultaneously improving customer service and satisfaction levels.

Costco’s commitment to reducing waste can be seen through its store design, which emphasizes minimalism and customer convenience. Employees at these stores are trained to provide customers with an exceptional shopping experience. Consumer Reports found that shoppers at Costco were more satisfied than at nine other retailers when making purchases from Costco.



What You Need to Know About Costco

Costco is an incredible value when it comes to grocery and other purchases, offering 48 packs of toilet paper for $4 or their $1.50 all-beef hot dog combo at just a quarter.

Kirkland Signature offers an expansive selection of items under its private label and features some indulgent products to keep us coming back for more.


Costco makes it easy to stock up on household essentials with just one stop – from giant jars of peanut butter to 48 packs of toilet paper, you’re sure to find everything your family needs for everyday living at their bulk grocery store. In addition, Costco also offers its own line of clothing, vitamins and beauty items, pet food and kitchen gadgets!

Costco membership fees may be worthwhile investments for many; many of the retailer’s biggest discounts can be found in shelf-stable foods and pantry essentials like chips, crackers, granola bars, bottled water, rice and whole-bean coffee – making this retailer worth frequent visits and savings!

Costco warehouses around the world tend to resemble one another in design and offerings; however, these differences often depend on local tastes and preferences for food court offerings. Meat pies can be found in Australia; poutine is popular across Canada and France; pastor taco-topped pizza from Mexican locations can be found there too; in Iceland there’s even something called plokkfiskur available! In addition to food court offerings sold globally through Costco stores. Additionally, many international locations sell an assortment of American and local brands.


Costco is popular because they can find incredible food at unbeatably affordable prices. Costco does this through simple store designs that require less maintenance; wholesale purchases that pass along savings directly to their customers; and through their company-owned brand Kirkland Signature which allows for production and distribution control.

Costco stands out as an exceptional value because, despite lower markups, they still offer top-quality national and local brands at prices consistently below traditional wholesale or retail pricing – even the most seasoned shoppers may be amazed by what they find when visiting Costco! Their vast selection can even surprise experienced buyers.

TikTok star Jennifer Lee was so taken with the store’s offerings that she felt compelled to share an item-by-item tour of what she purchased, from 48 packs of toilet paper to giant jars of peanut butter – it has since garnered over 798k views! Costco is one of the world’s premier warehouse clubs, which sell bulk quantities of merchandise at discounted rates to members paying an annual membership fee.

Health & Beauty

Costco is widely recognized for offering bulk purchases of toilet paper, nonperishable snacks and other essential items at highly discounted rates. But they can also provide high-quality beauty and wellness products from eyeshadow palettes coveted by makeup enthusiasts to high-end perfume rivaling Chanel’s selection – Costco offers it all.

Kirkland Signature products provide high quality at value pricing, yet not exclusively discounted: stores carry products from more expensive brands such as RoC, Kate Somerville and La Mer.

Recent Costco members surveys revealed that over half reported purchasing beauty and wellness products at Costco. It’s no secret why: Costco’s warehouse store beauty aisle brims with everything from lotion and shampoo to makeup brushes and facial wipes! In fact, Costco’s online sales surged 13% during Q4 2017; CFO Richard Galanti highlighted “health and beauty aids” as one of the company’s top performers during that timeframe.

Home & Garden

Costco offers almost everything a homeowner or gardener could ever need for home and garden needs – from top quality cookware and bakeware, sought-after kitchen appliances, and fashionable home decor items.

Warehouse club also boasts an unbeatable selection of tools such as hoses, shovels and rakes at unbeatably competitive prices. Plus they carry houseplants to add color and life to any home as well as gardening supplies like mulch and weed-prevention landscape fabric – not forgetting houseplants of course!

Costco offers an impressive selection of outdoor furniture to help make the great outdoors more accessible, from Adirondack chairs and loungers, gazebos and large umbrellas, gazebos with built-in sound systems and massaging hydrotherapy jets, to luxury hot tubs or spas equipped with impressive features like sound systems and massaging hydrotherapy jets.

Are you looking to add color and texture to your yard? Consider purchasing one from Costco’s Garden Center. Their selection ranges from hearty boxwoods to fragrant lilacs; plus they have many fruit trees which produce delicious, nutritious fruits that are easy to maintain.


Costco could offer the perfect deal if you’re in the market for a new vehicle. According to Investopedia, Costco’s car buying program partners with auto dealerships to sell vehicles at pre-negotiated prices; additional limited-time special offers might make their discounted prices even more accessible.

Start shopping the inventory online and narrow your choices down to vehicles that meet both your specifications and budget. Once they find something they like, a salesperson from the dealership will contact them to schedule a dealer visit; once there, you’ll receive a member-only price sheet detailing both prearranged car price as well as savings through manufacturer incentives.

One drawback of the Costco program is that dealers still need to make money and they may try selling you add-ons such as extended warranties and gap insurance that may not be essential or affordable for you. You can avoid this scenario by negotiating your own price or searching outside the program for deals.

Sporting Goods

Costco is known for providing more than groceries, clothing, furniture and home improvement items; their membership warehouse club was first founded by Jim Sinegal and Jeff Brotman under the name Price Club in 1976 and currently boasts 720 stores worldwide. Their offerings include private label and brand-name products.

Costco locations also feature food courts featuring complimentary samples of sausage, artichoke dip, cheese and crackers, desserts, beverages and beverages. In some locations, Costco has even opened large stores known as “sports destinations”, featuring indoor climbing walls and batting cages to meet its members’ sports-oriented needs.

As an added benefit, this chain offers one of the highest employee-to-customer ratios in retail with a median salary that surpasses national average and an 80% employee retention rate. Thanks to their outstanding business practices and disciplined leadership style, they’ve managed to remain at No. 9 on World’s Biggest Retailers List even during 2008 financial crisis.

Financial Services

Costco has earned its premium valuation largely by finding creative ways to increase traffic and spending at its warehouses. Customers were especially drawn to Costco during times of dire need such as during the pandemic outbreak when many sought essential supplies from Costco stores.

Attracting talented employees who provide outstanding service is also of great value to this business, with over 90% of members renewing membership annually. In contrast, comparatively minimal advertising expenditure was allocated towards customer acquisition efforts.

Costco Merchant Services stands out among retailers as being among the few that offers an expansive selection of POS hardware and software solutions, but due to their tiered pricing rates and some hidden fees we do not recommend it as an ideal merchant services solution for small businesses. Furthermore, their hardware financing plan only applies to “qualifying purchases”, leaving most buyers unsatisfied. However, even with such limitations in mind they still provide many useful features such as free e-commerce gateway and hosted payment page as well as secure encryption with tokenization for cardholder data protection.


Costco partners with Protective Life to offer its members an array of insurance policies, such as auto, home, and life policies. Customers typically save around 15% in premium costs when compared with general life market premiums.

Costco utilizes CONNECT, a division of American Family Insurance. CONNECT is one of the top-rated car insurers with an excellent J.D. Power customer satisfaction score and also has an outstanding AM Best financial strength rating.

Costco insurance policies offer comprehensive home and auto coverage with discounts of up to 25%, as well as some unique features such as glass reimbursement of up to $1,000 to replace broken windows, home lockout assistance and glass reimbursement of up to $1,000 when replacing them, lifetime renewability and the freedom to select body shops for repairs – just some of their standout offerings. Executive Costco members enjoy even more advantages, like lifetime renewability and lifetime body shop repairs available to them.

Costco may offer competitive auto and home insurance quotes, but for best results it is wise to shop around and compare quotes from multiple providers. Our third-party data evaluation tools enable us to evaluate each provider based on customer satisfaction scores, financial stability and claims history.

Costco Buyers - What You Need to Know!

costco buyers

How to Get Your Product Into Costco Buyers

If your weekends are spent running errands (groceries, car service, refilling prescription, patio furniture purchases or funeral planning) there’s one place that could save you money: Costco.

Costco offers great products at great prices, but how can your product get into their hands?

Costco Buying Offices

Costco is a membership-based warehouse club dedicated to offering quality brand name merchandise at the most competitive prices. They have hundreds of locations worldwide that each provide a comprehensive selection of products, specialty departments and exclusive member services. Starting as Price Club in 1976, Costco changed to Costco in 2000 to reflect its expanding international presence and become one of the world’s premier retailers, renowned for exceptional customer service. Paying employees well leads to higher job satisfaction and reduced turnover rates, thus saving money through no longer needing new hires or training sessions. Furthermore, having less products in their store reduces inventory maintenance costs significantly.

Costco operates eight buying offices that oversee merchandise for its 556 US stores and 272 international locations. Each office employs individual buyers who use specific criteria when accepting or rejecting product submissions – so placing it with the right buyer is key for its success! A costco broker with experience can assist in this process.

Acquiring products into Costco inventory requires patience and organization. The process can be lengthy, taking months before being seen by one of their buyers. To meet buyer expectations and fulfill them with your products, speak to your local store manager who may give feedback or know of similar items that have already been seen there.

Information about the purchasing office can also be found online, where there are lists of buyers for each department; these contacts may change frequently. For food or sundry items, submit it directly to the regional office; for non-food items call corporate.

Costco may have experienced success, yet it still faces risks. Relying heavily on specific geographic regions increases consumer preferences fluctuations and rising labor and energy costs; and its warehouse model leaves it open to shifting consumer tastes as large quantities must be stored for anticipated high sales of specific items.

Costco Vendor Guidelines

Attracting Costco to your product takes much effort, as you must prepare an extensive business plan and adhere to some stringent requirements. Market research should also be performed to see whether or not your product fits within its audience and platform.

Costco membership provides you with an incredible competitive edge over your competition, as its millions of members worldwide provide you with an expansive customer base and its Kirkland Signature brand imparts an image of quality and value for customers. In order to enter this marketplace successfully, products must meet customer needs at Costco while simultaneously meeting quality criteria set out by Kirkland Signature brand. In order to do this successfully.

As the first step of becoming a Costco vendor, submit an application with your products listed and details about each one to the regional office. Your regional manager will review this application and may ask additional questions about your business and products; furthermore they may examine financials to ascertain whether they can sell at Costco.

Once approved as a Costco vendor, a team will visit your production facilities to ensure you meet all necessary standards – this includes complying with relevant labor laws in each nation where you produce. In addition, you will need to submit a social responsibility report which verifies you are providing a good working environment for employees.

After an inspection, the team may recommend that your product be sold at Costco and you will then be required to sign a contract with them outlining all the terms and conditions pertaining to your business relationship with Costco; should any violations occur regarding its guidelines then this agreement could be cancelled by them immediately.

Once you have signed your contract with a retailer, it is crucial that your product remains available at all times in order to prevent sales declines and potential loss of sales. Therefore, bulk production would ensure you can meet retailer demands.

Costco Vendor Qualifications

Costco has specific specifications when looking for vendors. Their purchasing managers look for products with competitive pricing and durable packaging that meet certain benchmarks; in addition, they require sufficient stock quantities to fulfill customer demand. It is vitally important that vendors understand these requirements prior to approaching Costco buyers with pitches for potential products – failing to do so may mean losing out on selling in their stores altogether.

Acquiring your product into Costco can be a long and complex process. The first step should be finding a contact person at their headquarters who will give an overview of the company and its policies as well as help assess if your product fits within them. Once this information is in hand, vendor application process can begin.

Once you’ve established an initial connection, the next step should be securing a meeting with the buyer. Costco buyers tend to be busy people who meet with multiple vendors at once. Therefore, it is critical that your presentation be brief and succinct in order to stand out amongst competitors.

When presenting your product at Costco, be sure to emphasize its key benefits and features. Emphasize how it will enhance their members’ Costco experience as well as how it stands out from its competition. Remember, buyers may only have limited time, so make sure your presentation highlights only its key aspects.

Your product must meet the minimum wholesale sales price threshold set forth by your target company, while having an effective marketing plan will increase its chances of contract.

Before submitting an application to a company, it’s essential to review their website in order to familiarise yourself with their latest requirements and policies, including any ethical considerations such as human trafficking prevention policies and support of diversity initiatives in stores. In addition, make sure to read over any underlying contracts and review terms and conditions carefully to avoid misunderstandings later.

Costco Brokers

Costco brokers are highly-skilled product placement companies and manufacturer’s representatives that use their knowledge and experience to guide manufacturers, service providers, distributors through the Costco purchasing process. They possess in-depth knowledge about its requirements, stipulations, purchasing styles per category. An effective broker will make getting into Costco easier and more enjoyable; additionally they may even advise on an optimal sales strategy for your product or service.

Costco’s global presence and reputation is well known, and members appreciate its selection of high-quality goods at great value both online and in its warehouse stores. According to estimates, Costco members save thousands each year – whether on discounted contact lenses, travel packages or anything else! Furthermore, Costco operates numerous locations worldwide including United States, Canada, Mexico Taiwan Korea Australia

Costco members not only benefit from significant savings but also from accessing an unparalleled selection of food and non-food items. A typical Costco store covers about 180,000 square feet and stocks approximately 3,500 SKU’s – equivalent to approximately one-tenth the inventory found in typical supermarkets.

Therefore, the company has developed an innovative business approach. They purchase large quantities of items before trying to quickly unload them on customers as quickly as possible – an approach which may prove successful given the changing consumer preferences.

In order to increase your chances of success with Costco sales, begin by identifying what sets your product apart from competitors and creating a website or blog to create awareness. This will help build credibility and garner interest from potential Costco buyers. Once this step has been taken, contact local Costco buyers in your area via their company website (though be aware that some may not be able to assist with your product); instead look for regional buyers as these can have an outsized influence in the success of your product sales there.

Step-by-step training on how to sell to major retailers

We explain exactly how to do that and how to get started today. I’ve taught tens of thousands of companies on how to get your products to the stores. And so we’re here to support you. Or please subscribe to our Youtube channel and or be on the lookout for additional training that we create.

We are here to expedite the process of making money with your physical products and that’s what we’re all about.  Take a look at our advanced training, live events, certification programs and so much more.

In this training, I will discuss some of the things to think about when approaching a retailer to sell your products and become a vendor. Hope it helps! 🙂

Karen Waksman,
Retail MBA

Questions? Contact Us!
1-855-Retail-2 (Call or Text)

Retail MBA provides a step-by-step formula on How to Sell to Major Retailers, Online Retailers, Smaller Retailers, Catalogs and More. No Experience Required! These solutions continue to convert for clients year-over-year! These are Time-Tested and Proven Strategies that we utilize ourselves when going after stores! Everything we teach, we test. Want access to these formulas? ANY one of our programs and coaching systems gives you access to them now. With that said… 

Here are 4 Easy Ways to Work with Us:

 1) Free Training – If You Would Like to Join Our Next FREE Webinar Training Called “Retail Chain Store Secrets – How to Sell to Major Retail Chains. No Experience Required” Then Sign Up NOW To Learn All About Selling into Retail Chains By Clicking Here!

2) Masterclass Intensives  Want to Join our Next 4 Week Elite Retail MBA Masterclass Intensive? These Intensives Are EPIC for people who Love Fast Paced Learning – Homework, Retail Coaching, Developing Your Strategy, Buyers Contacts and More! These Events Are Held Every Quarter. Join us by Clicking Here:

3) Done-for-You Program – If You Want Karen Waksman and Her Team to Reach Out to Your Top Dream Retail Chains On Your Behalf – And You Have a Retail-Ready Product, Check Out our Epic Done-For-You Service by Clicking Here:

4) In Person Events – If You Want to Learn LIVE and Meet Karen Waksman in Person at Our Next Retail Sellers LIVE Event with Other Like-Minded Individuals in Beautiful San Diego, CA! 

We Would LOVE to Have You Join Us by Clicking Here:

Thanks so much.

And…if you like this training, you will love these new short training sessions as well! Click on the links provided to watch and grow your consumer product business TODAY!

  1. 5 Tips for Working with the Top Manufacturers Reps
  2. #1 Thing Retail Buyers Want You to Know
  3. What NOT to Do When Selling to Retail Chains! 
costco distributors