Costco.com – Additional Sales Opportunities

One thing all can agree on is how effective and appreciated Costco samples are. +Costco samples may even be the driving force for a member’s visit to their local warehouse. It may seem as though nothing could match this appeal on Costco.com, but you may be surprised.

Costco.com also offers a sampling program that is designed mostly for non-foods items. Much like in-store sampling, there is a fee to be included in the program which includes prime positioning on Costco.com’s site. Additionally, you have the opportunity to opt in to marketing opportunities that will boost your products presence on Costco.com and visibility to the Costco.com member. (more details are available for our clients and Costco vendors).

In addition to the sampling program, Costco.com also offers the freedom to pitch your product in a way that cannot be done in the warehouse through website descriptive text, images, and videos. If your item is chosen for placement, you have the freedom to develop your website text and include images and video at no additional charge, and with buyer approval. This provides the opportunity to inform Costco members about your product, and to sway “on the fence” consumers to add-to-cart.

If you are interested in Costco.com sales, contact VendorCo today at [email protected] or (949) 326-8909.

Costco.com Advertising Opportunities

One of Costco’s most popular advertising options is the Costco Connection magazine, which is mailed to over 8 million Executive and Business Member homes, and is also available online for free download. While the Costco Connection is available for in-store items, there is an exclusive Costco.com insert which displays a limited number of items that are exclusive to Costco.com.

Additional Costco.com advertising opportunities include the Costco.com mailer, multi-vendor mailer, e-mail campaigns, new product category featured page, home page placement, themed landing pages, and display advertisements. All of these advertising options are targeted to reach Costco’s best members, and the reasonable prices may surprise you! More details, including demographic data and pricing, are available to our clients and Costco.com vendors.

The above mentioned paid advertising options are not the only way for Costco vendors to excel on Costco.com. Additional sales opportunities are also available, and you can read all about them on our next blog.

Costco.com Vendor Advantages

First, Costco.com offers greater buying potential to manufacturers. If your company is unable to land a Costco in-store account, you can always attempt to pursue Costco.com. And while Costco in-store items must serve a larger demographic, Costco.com items have the potential to fit in a more niche category.

Costco.com items can also help reduce return rates for impulse buys, and an optional survey is provided at the time of a return request. This option allows Costco and your company to pinpoint exactly why members are returning your product to locate areas of growth and improvement.

Additionally, Costco.com offers members the opportunity to review your product. If you are able to land an account with Costco.com, chances are good that your product is high quality. Member reviews allow potential customers to hear firsthand accounts of how great your product functions for the Costco member.

Costco.com also offers advertising and sales opportunities that are not available through Costco in-store, and are delivered directly to the member. To read more about advertising and sales opportunities, check out our next blog post.

Costco.com Member Advantages

Costco members have the added advantage of a wider product offering on Costco.com as compared to the warehouses. While the warehouses only carry a few thousand items at a time, Costco.com is able to host a myriad of additional items that cannot be found in the stores. These items still provide the high quality guarantee that Costco is famous for amongst their members, with only a 20% product overlap.

Additionally, Costco.com is able to offer special order items and additional services that would not be realistic for in-store sales. From wedding services to health care offerings, Costco.com can provide quick and cost effective solutions to Costco members. And like all eCommerce sites, Costco.com offers all of these benefits from the convenience of the member’s home, without having to fight the checkout lines and crowded aisles.

If you have a product or service that would be a good fit for Costco.com, contact VendorCo today. We can help you present your product to the appropriate people, with the required information, in Costco’s preferred format. Contact us at [email protected], or (949) 326-8909.

About Costco.com

Initiated in 1998 by David Sinegal, son of former CEO Jim Sinegal, Costco.com is a fairly new and growing avenue of Costco. In 2012, approximately 30% of Costco members shopped on Costco.com. While this may seem like a low and perhaps even discouraging number for potential vendors, Costco.com still manages to receive millions of monthly page views and billions in annual sales. In 2008, only 12% percent of members shopped on Costco.com. This large increase in member traction speaks to the enormous potential Costco.com holds for the future.

While Costco.com product sales are certainly not as high as in-store sales, Costco.com does offer several advantages to vendors and members alike. Both parties have a lot to gain from pursuing this avenue, and our next posts will explore the many advantages Costco.com offers.

Visit our next blog to read all about Costco.com member advantages

August Blogs – Costco.com

Last month, we introduced the various avenues of Costco Wholesale. This month, we will delve deeper into the processes of Costco.com, providing vital information that must be considered and accounted for before proceeding with your program. We will cover the following topics to help with your Costco.com program:

  • About Costco.com
  • Member Advantages
  • Vendor Advantages
  • Advertising Opportunities
  • Additional Sales Opportunities
  • Packaging  and Shipping / Fulfillment
  • Resources

Stay tuned throughout the month of August to read all about Costco.com!

Costco Specialty Departments

Costco has several avenues outside of those listed in the previous entries. Specialty Departments may include Costco’s Travel, Optical, Pharmacy, and many more. Some items may cross over to specialty departments, and if so, it is important to understand how they differ from other Costco avenues.

If you believe your product or service may fall into a specialty department and are interested in seeking representation, contact VendorCo today to get started at [email protected]

Costco International

Costco has several international buying offices outside of the US, including Canada, Mexico, United Kingdom, Japan, Korea, Taiwan, and Australia. Additionally, Costco is always expanding. International programs operate differently from the US in many regards, including testing requirements, regulations, and procedures.

Working with international buying offices can be an extremely beneficial for several reasons; however, it can also be difficult to approach and navigate.

VendorCo can help hopeful Costco vendors manage their international programs. With a history of international success within Costco, we understand the processes and procedures necessary to create a long term relationship with the international buying offices.

For more information, contact VendorCo at [email protected]

Costco National

Costco national sales tend to be the most lucrative. If your product is accepted for a national sales program, it is distributed to warehouses all across the United States. Your product may not be in every warehouse, but it will be distributed throughout all Costco regions.

National sales are intended for established manufacturers that have existing distribution and a nationally recognized brand or product. It is not easy to receive a purchase order for national sales, which is why most vendors choose to partner with a manufacturer representative.

VendorCo has a history of successful product placement, and over 20 years of hands of experience. If you are looking for a qualified, successful representation company, VendorCo is the right choice.

Contact us at [email protected] to get started!

Costco Regional

If you are interested in regional distribution, or if your item is a foods item, then you should focus on Costco regional sales. The regional sales buying group is separate from the national buying group, so you will need to keep this in mind before you move forward.

Additionally, you should understand the distribution of each region, including the number of warehouses per region and how the regions are geographically broken up. Once you understand how Costco regions are separated, you will have a better idea of which region(s) to target.

If you would like more information about whether or not regional distribution is right for you, contact Vendorco at [email protected]

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