How to Become a Costco Vendor

New products are always welcome.
In the interest of your time, and the time of our buyers, we recommend that you review the following buying specification worksheet:

Quality

  • High-quality merchandise guaranteed by our suppliers to maintain Costco's reputation and member satisfaction.
  • No seconds
  • National brands where feasible
  • Where national brands do not reflect optimum quality and value, private label will be considered
  • Private-label merchandise specification guaranteed by our suppliers to maintain Costco’s reputation and member satisfaction.

Pricing

  • Item presentation should always represent lowest possible acquisition price.
  • Item presentations should include a breakdown of all built-in costs, demos, spoils, advertising and marketing volume, rebates, and opening deals
  • A complete freight evaluation of all methods of product distribution should be included in each presentation:
    • FOB manufacturing plant / distribution centre
    • Delivered to our warehouse
    • Our preferred method of payment is electronic funds transfer (EFT)

Packaging

Costco aisle
  • All items should carry barcodes and may also need to carry the Costco item number.
  • Items are to be presented in labour-saving pallet packs for optimum visual presentation
  • Packaging and labeling on all products must be informative, truthful and must not be in any way deceptive
  • Packaging is to be environmentally friendly, and must comply with E.U. and UK packaging regulations.

Product Categories

  • Wholesale items – items carried on an ongoing basis where our wholesale members are relying on Costco to supply their daily business needs
  • Treasure hunt items – items that may appear on a one-time basis or in selected warehouses. These items represent high-value, high-image categories
  • Seasonal items – items carried during a particular time of the year.

Gratuities

Costco's policy expressly prohibits the acceptance by any Costco employee of any gratuity from a vendor with whom we are currently doing business or whom we are considering for future business.

Purchasing Quotes

We expect all vendors to consistently and voluntarily quote the lowest possible acquisition price available on all items. A vendor who does not consistently and voluntarily quote its lowest prices to our buyers will be permanently discontinued as a purchasing source for Costco.

EDI

Costco use EDI for sending our purchase orders and receiving vendor's purchase invoices, if you would like to exchange documents with Costco via EDI, please contact: ediservices@costco.co.uk

If you are interested in obtaining further information please contact us at the address listed below or phone 01923 213113.

Costco Wholesale UK Ltd.
UK Home Office
Hartspring Lane
Watford
Hertfordshire
WD25 8JS

Costco Confidential Ethics Hotline

We have implemented a global confidential ethics hotline as part of our continuing efforts to assure compliance with our Code of Ethics, our Vendor Code of Conduct, and other legal and ethical policies.

For more information please read the Confidential Ethics Hotline.pdf

Or visit www.costco.ethicspoint.com

European Distribution Fraud

Costco is aware that a number of European suppliers and manufacturers are being targeted by fraudsters who dishonestly use the name of retailers or wholesalers, such as Costco.

For example, contact is made initially by an email that claims to be from Costco. The email may well use a domain name that is similar to a Costco domain name and use cloned logos and website and contact details, including the names of senior personnel. As a result, the email may look authentic.

The email may claim that Costco is looking for new products and new suppliers and invite the manufacturer to send catalogues, product lists and prices.

Costco has nothing to do with such emails. When we purchase products for resale at our stores, we negotiate the transaction personally, including payment terms. Under no circumstances does Costco send unsolicited email requests for products and Costco does not pay suppliers through letters of credit.

If you are in any doubt about an email that appears to come from Costco, please contact us using the details on our website, not the telephone number or email address given in the email.

If you have been a victim of European Distribution Fraud then advice on the steps you should take is available from Action Fraud, the UK National Fraud & Cyber Crime Reporting Centre.