How to Sell to Costco
How to get your product into Costco: how Costco buys, pack and pallet requirements, pricing expectations, roadshows and regional starts.
Costco carries a small number of items per warehouse and sells them in larger packs at low prices, so its buyers look for products that sell very fast at a sharp price. To sell to Costco, build a club-size pack, price it for a low markup, show strong sales proof, and pitch the buyer for your category, often starting with a regional test or an in-warehouse roadshow.
How Costco is different
- Far fewer items than a supermarket, so every slot has to earn its place
- Larger multi-packs sold at a lower price per unit
- Low markups are part of Costco's model, so buyers push hard on cost
- Items often rotate in and out, especially seasonal and special buys
- Buying is done by category, and many items start in one region
Costco supplier requirements
- A club pack designed for Costco, often a multi-pack or larger size
- Pallet-ready packaging that ships and displays well on the warehouse floor
- GS1 barcodes, product liability insurance and food safety certifications where needed
- Capacity to supply large orders reliably
- A cost price that leaves Costco's low markup and still beats other retailers per unit
Retailer Requirements Checklist
Everything a retail buyer expects you to have ready before you pitch: barcodes, pack, pricing, proof, pitch materials and launch plan.
Get the checklistWays into Costco
- Start regionalPitch the regional buyer for your category. A strong result in one region can lead to more.
- RoadshowsSome brands start with in-warehouse roadshows, where the brand sells and demos the product for a set period.
- OnlineCostco.com carries items that are not in warehouses and can be another entry point.
- Through a brokerA broker who already sells to Costco in your category knows the buyers and timing.
Retailer guides
Questions
Does Costco charge slotting fees?
Costco is known for asking for the lowest possible cost price rather than traditional slotting fees.
How long does it take to get into Costco?
It varies. A regional test or roadshow can come together in months; a national placement usually takes longer and depends on results.
Can small brands sell to Costco?
Yes, especially regionally. The key is a club pack at a great value and the capacity to supply it.
See where your product stands
Related guides
Wholesale Pricing and Retail Margin: How to Price a CPG Product
How to set wholesale and retail prices for a CPG product: keystone pricing, margin vs markup, what retailers and distributors expect, and a worked price waterfall.
How to Pitch a Retail Buyer (and Win the Line Review)
How to pitch a retail buyer: when category and line reviews happen, what buyers want to see, how to structure a retail pitch deck, and how to follow up.
What Does a Food Broker Do? Costs, Commission and When You Need One
What a food broker does, how brokers are paid, typical commission, broker vs distributor, and how to decide if your CPG brand needs one.