Costco requirements and FAQs

Overall process description

Costco identifies potentially hazardous products that require registration with Smarter Sorting as part of its procurement process. Because Costco and Smarter Sorting’s data systems are connected, both parties have visibility into the suppliers and products that are required to participate in the program. Purchase orders for qualifying products may be disabled by Costco until Smarter Sorting confirms that each product has been registered and classified. Smarter Sorting charges an annual fee based on the number of products covered under the program, with a minimum contract term of one year. Contracts are reviewed annually 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. 

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

You should register all customer-facing UPCs, meaning the UPC that is scanned at the register at the time of purchase. Smarter Sorting does not classify case or pallet-level quantities. The Smarter Sorting portal also includes a separate field where you can enter the Costco item number assigned by your Costco buyer. 

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. If you believe that your item is discontinued, reach out to your Costco buyer to update the status of the item to pending or delete to remove the item from your contract

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.

Where can I find the Costco requirements for registration?

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 are the types of documents required by Smarter Sorting for registration?

• User Manual or Guide (not specification sheet) 

• Safety Data Sheet (SDS) for formulated items

• 38.3 test report for lithium batteries, if applicable

• Article Information Sheet, if applicable

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 and items sold with chemicals.

• Consumables: OTC products, nutritional supplements and vitamins, food products with alcohol, and/or foods dispensed by aerosol.

• Electronic items: Any item that requires power - hardwired, corded or battery operated.

• Lightbulbs

• Batteries

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

You should contact your Costco buyer 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.

What about products that are different colors or sizes?

Costco requires a unique active registration for all qualifying items, regardless of difference in masterpack quantity, unit size, or color variations. 

Further questions?

We are always available to answer any questions we can. Please feel free to reach out to the Customer Success team at cs@smartersorting.com, or contact support@smartersorting.com for help or clarification.