Costco requirements and FAQs

Costco requirements and FAQs

 

Overall process description

Costco identifies potentially hazardous products requiring registration with Smarter Sorting during the procurement process. Because our data systems are connected, both sides have visibility into suppliers and products that should be part of the program. Purchase orders for qualifying products may be disabled on the Costco side until confirmation of registration and classification of each product is received from Smarter Sorting. Smarter Sorting charges an annual fee based on the number of products. There is a one year minimum contract. Contracts are revisited yearly and licenses must remain current for all products listed as active in Costco’s inventory system as of the contract renewal date. 

 

I’m a new supplier; do I need to do this?

Yes. All new suppliers with qualifying products should register them with Smarter Sorting. 

 

I’ve been selling to Costco already; is this a new requirement?

The requirement may be new for you as Costco and Smarter Sorting have expanded their partnership this year. All products sold into Costco warehouses prior to the requirement should be registered immediately. 

 

Do I register the customer-facing UPC, the case, or the pallet?

You should register any customer-facing UPCs. This means the UPC that would be scanned at the register at the time of purchase. Smarter Sorting does not classify case or pallet quantities. 

 

How do I handle bundles?

For bundles that you market and sell under your own UPC, you should enter the consumer-facing UPC and declare each component individually. One product can have many components and one registration covers the UPC no matter how many components it contains. 

 

In other cases, Costco assembles a bundle of your individual products and sells those bundles under their own UPC. In these cases, you’ll need to make sure that each individual product that makes up the bundle IS registered and classified. Our team can assist you with the Costco bundles once UPCs are assigned. 

 

What about private label (Kirkland Signature) products?

Suppliers of all qualifying products are required to provide their product information to Smarter Sorting and pay the associated fees for evaluation. This includes manufacturers of private label products. 

 

What about seasonal products?

Registration is required for all qualifying seasonal products. Standard terms apply. 

 

What if my product is discontinued?

Registrations with Smarter Sorting must remain active as long as the product is listed as active in Costco’s inventory data. Smarter Sorting registrations are contracted annually. If a product is discontinued, the contracted license may be reused at your discretion. No refunds or credits will be issued for unused portions of any yearly license agreement. 

 

What about products only sold on Costco.com?

Costco accepts returns at any of their locations for products purchased online. Products sold only on Costco.com are still required to participate in the Smarter Sorting program. 

 

My product is only sold on Costco Next; do I need to register?

Yes. Costco is covering the registration fees for products sold only on Costco Next, but you still need to register these products with Smarter Sorting. 

 

Where can I find the requirement documentation?

Costco provides a letter to suppliers detailing the requirements and the process for working with Smarter Sorting. Feel free to reach out to your Costco buyer or you can view the letter here. 

 

What types of products need to be registered?

The following is a list of products that require registration with the Smarter Sorting program:

• Chemicals: Any solid, liquid, or gas products not intended for human consumption.
• Consumables: Nutritional supplements and vitamins, food products with alcohol, and/or foods dispensed by aerosol.
• Electronic items or items that are powered. This includes items with a battery and items powered by gas or AC/solar.
• Lightbulbs
• Batteries

 

I’m still not sure if my product qualifies; what should I do?

You should contact your Costco merchant if you are not sure if your product qualifies. Costco makes the final decision and Smarter Sorting is here to assist you with required registrations. 

 

Further questions?

We are always available to answer any questions we can. Please feel free to reach out to your Customer Success Manager if you have one already, or contact support@smartersorting.com for help or clarification.