Getting your products into Costco can be a game changer.
Higher sales volumes month after month. Consistently higher revenues. And a level of brand visibility that money can’t buy.
But meeting their strict vendor requirements isn’t always easy. Costco's latest packaging guidelines run 40 pages of largely technical information. It can be pretty overwhelming—especially if it’s your company’s first time navigating them.
This article breaks the requirements down into three basic priorities Costco has for packaging. And it gives you some key points that manufacturers and wholesalers don’t want to miss.
But the truth is, you shouldn’t have to manage all the technical details of Costco packaging compliance.
That’s our job.
We’ve helped clients package all sorts of products for Costco. Whether you’re selling dry grocery, perishables, hardlines, softlines, or sundries, our design and engineering team makes sure your packaging always meets Costco’s latest standards.
So let’s look at what’s most helpful for you to know.
Costco’s Packaging Priorities: Strong, Efficient, and Convenient
Costco’s business model is to move a lot of volume with relatively low operating expenses.
When you read between the lines of their packaging requirements, that’s what they’re about. They need every piece of packaging that moves through their warehouses to be strong, efficient, and convenient enough to support that business model.
Here are the key points from each to help you understand what Costco needs:
Strong, Durable Packaging for Costco’s Supply Chain
Before your merchandise gets in front of Costco shoppers, it will likely go through a couple trucks, a distribution depot, and warehouse unloading and staging.
Along the way it’ll encounter forklifts, pallet jacks, possible mechanical clamping, and stacking. For instance, here are their minimum stacking strength requirements:
Each pallet load under 750 lbs./340 kg (including pallet) must be capable of withstanding 1,500 lbs./680 kg of weight on the bottom product layer without damage.
Each pallet load weighing 750 lbs./340 kg (including pallet) or more must be capable of withstanding 2,500 lbs./1134 kg of weight on the bottom product layer without damage.
Our engineers ensure your packaging can handle the load. Not just to keep you in Costco’s good graces. But also to make sure your products get through their supply chain undamaged (even if they’re quite fragile).
Key Details: Costco requires moisture-resistant adhesive for many products. Here’s what their guidelines say:
“Moisture Resistant Adhesive (MRA) is required for all corrugated packaging that is exposed to a moist, refrigerated environment, and recommended for non-refrigerated environments.”
If you’re not sure whether that applies to you, get in touch and we’ll get you sorted.
Efficient Packaging for Costco’s High-Volume Sales
Costco moves mountains of merchandise, but their margins are notoriously low. So they’ve had to build an incredibly efficient system to stay in the black.
Their packaging requirements help protect that efficiency. Both in terms of time efficiency, and space efficiency.
For instance, Costco requires many products to be palletized in display-ready packaging so warehouse staff can move them quickly into place. “Must ship display-ready,” their requirements say, “without box cutters or labor required to stock product.”
And their pallet configuration requirements say this:
“Unit load must maximize pallet area without gaps between sell units or master cartons.”
In other words, they want as much product on each pallet as possible so there’s no wasted space in the warehouse.
Our packaging design team ensures full compliance with Costco’s efficiency needs.
Key Details: Costco requires that pallet footprint not exceed 48” x 40”, with a recommended footprint of 47” x 39”.
And if display-ready packaging isn’t required for your products, you can ship in a fully-enclosed corrugated container for added protection. Costco has some important weight, height, and transit requirements that we’ll help you get right.
Convenient Packaging for Costco’s Customer Flow
Costco wants their customers to be able to move quickly through the warehouse.
Their requirements are designed to make it quick and easy for customers to grab a sell unit and keep moving.
For instance, they require the longer side of the pallet to be the display-ready side, so more hands can grab from it at once.
Also, products can’t be shipped with protective dividers between sell units that make it hard to see and grab them. And there are strict requirements around display trays to balance protection with ease of customer use.
Our packaging design team knows these requirements in and out and will make sure your packaging nails them.
Key Details: Display trays are required for products that can’t structurally support their own stacked weight. Here’s what Costco says:
If the product packaging (the sell unit) does not provide any structural support, design the tray to carry all load weight (pouches, bags, soft goods, etc.)
If the product packaging is partially stable, but not strong enough to support all load weight, design tray to work with the sell unit, so together they provide the proper strength
There are some other requirements around sizing, design, and layout of the trays that we’ll help you navigate.
Bonus: Costco’s Focus on Sustainability
Costco is working on reducing waste from packaging. Here’s what they say:
“All packaging component materials should be widely recyclable, certified compostable or biodegradable by members in the areas where the product will be sold. Packaging should also optimize recycled content.”
Corrugated is the most widely recycled packaging material in the world, making it the ideal solution for Costco. And our SFI®-certified and post-consumer raw materials make Pacific Box an ideal partner.
We ensure that all components of your packaging align with Costco’s sustainability requirements.
Costco’s Packaging Requirements are Complex. But Meeting Them Can Be Simple.
Don’t let Costco’s strict packaging requirements delay or derail your chance to sell into their warehouses.
We work with clients every day to help them sell into Costco, so we know their requirements inside and out. We make sure your products sail through Costco’s system from your first shipment onwards.
Our in-house design and engineering team does all the heavy lifting so you can focus on more important things: creating great products and growing your bottom line.
If you’re ready for a Costco-friendly packaging partner to streamline your Costco packaging, get in touch today and we’ll show you what’s possible.