Reason 3: Why manufacturers sell to Costco

Another reason why manufacturers sell to Costco is because of Costco’s ordering structure. In the United States there are hundreds of Costco warehouses, each of which requires at least one pallet of product and plenty of back stock – whether it is held in the warehouse or the depot centers. Given this structure, Costco often orders products based on truck load quantities. The high quantity of product orders is extremely attractive to manufacturers because it obviously yields high dollar amounts per purchase order.

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