Another reason why manufacturers sell to Costco, and why manufacturers should sell to Costco, is the low level of competition within a warehouse. When you go to a typical retail store, there may be 10’s or 100’s of other products just like yours. For example, customers at a typical grocery or retail store have an overwhelming number of toothpaste and toothbrush brands to choose from. However, in Costco warehouses, they limit their product brands to a small handful, typically one or two, giving your product a much higher chance of being purchased by the members. It is not hard to see why many manufacturers find that being one of few product brands in the top U.S. wholesale chain is a premium place to be.