Sell to Costco: Vendor Guide to Success

Welcome! If you’re eager to unlock the secrets of becoming a successful Costco Wholesale vendor, you’re in the right place. Gain exclusive access to our comprehensive Costco Guide and How To Workbook – your roadmap to success with one the globes best retailers.

Costco isn’t just another retailer. It’s a $200+ billion powerhouse that moves entire global markets. One Costco location alone can sell $400 million a year — more than most supermarket chains.

I’ve helped nearly two dozen vendors break into Costco. Together, we’ve sold tens of millions of dollars. One project even became a Kirkland Signature item and topped $100 million in sales.

If you want a chance at results like this, here’s what you need to know.


1. Understand Costco’s Scale and Model

Costco is built on membership. Annual fees cover most of their profit. That’s why their prices are so low and their margins so tight — usually no more than 14%.

They don’t carry tens of thousands of SKUs like a supermarket. They only stock a few thousand items. That means competition is fierce. If you get in, you’re in rare company.


2. Be Ready for Volume

Costco doesn’t want unproven suppliers. They expect partners who can deliver, on time, at scale.

A “home run” at Costco isn’t a few pallets. It could be $50 million in annual sales. I’ve seen products do $25,000 per week per location — and some hit $50,000.

If you can’t supply that kind of volume, you’re not ready yet.


3. Design for the Club Store

Costco members don’t browse shelves. They shop pallets. Your packaging must work for a warehouse setting:

  • Large, simple, bold packaging

  • Easy to pick up and move from pallet to cart

  • Attractive at scale when stacked in bulk

Club packaging is different from retail packaging. Get it wrong, and you won’t last.


4. Start Local, Then Scale

Costco is divided into regions. You don’t have to go national on day one. Many brands succeed by starting in just a few warehouses.

With proof of strong sell-through, Costco can expand your product regionally or nationally. That’s how small launches turn into multimillion-dollar programs.


5. Use Demos to Drive Sales

Costco’s demo program is a secret weapon. Demos create massive awareness and lift sales not just in Costco, but in grocery stores too. Shoppers who try your product at Costco often buy it elsewhere in between club visits.


6. Respect the Partnership

Costco pays its vendors on time. They want strong suppliers they can rely on. They don’t want to put you out of business — they want you to succeed.

But they are demanding. They expect excellence in supply, logistics, and consistency.


Final Word

Selling to Costco is not easy. It’s competitive, demanding, and high-stakes. But if you’re prepared — with the right volume, packaging, and execution — the rewards are massive.

Costco can change the shape of your business. I’ve seen it happen. It can happen for you too.

Ready to take the first step? Simply drop us an email at [email protected], and we’ll promptly send you your copy. Don’t miss out on this invaluable resource to supercharge your business!

Who is Tim“Hi I’m Tim, and I love the food business! I’ve been helping large and small companies and entrepreneurs achieve success for decades. My consulting projects have contributed to major successes for my clients, including many with 100%+ year-over-year growth rates. I enjoy sharing my expertise, and hope you find these blog posts enlightening. Please reach out to me with any questions or comments.”

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