The Hidden Cost of Selling at Costco NZ — and How BPAC Can Help

The Hidden Cost of Selling at Costco NZ — and How BPAC Can Help

Costco’s entrance into the New Zealand market was big news — but for local FMCG brands and manufacturers, it came with unexpected packaging challenges. Unlike traditional supermarket retailers such as Woolworths or Foodstuffs (New World, Pak’nSave), Costco operates on a very different supply chain and display model — one that pushes much of the packaging burden onto suppliers.

And here in New Zealand, with only a single Costco location currently operating, that cost-per-unit becomes a serious barrier.

The Costco NZ Packaging Problem

Costco’s packaging requirements are unlike any other major retailer. Products must be delivered in custom Shelf Ready Trays (SRTs), Shipper Displays or PDQs that are designed for high-volume, warehouse-style merchandising. This model works efficiently for suppliers in the US or Australia, where they’re serving dozens of stores. But in NZ, it’s a one-store scenario — which means no economies of scale.

So what happens?

• Suppliers are forced to pay more per unit to meet Costco’s format and stacking requirements

• Small-to-medium manufacturers are priced out of trialling the Costco model

• The real focus — selling your product — is lost in a sea of packaging compliance

BPAC Services Has a Smarter Solution

At BPAC Services, we see the value Costco can offer to Kiwi brands — but we also see the roadblocks. That’s why we’re inviting non-competing clients to come together in a bulk-buy model for Costco-specific packaging.

We collaborate with suppliers to produce cost-effective, smartly designed SRTs and PDQs that meet Costco's global standards without bloating your unit costs. By grouping orders and designing adaptable structures, we reduce your per-unit packaging costs and let your product shine.

We’re Not Here to Sell Cardboard — We’re Here to Help You Sell More Product

Packaging is a means to an end — it must protect, present, and perform. But at BPAC, we know that every extra dollar spent on corrugate is a dollar not invested in your product or brand. That’s why our designs are:

• Efficient – flat-packed, pallet-optimized, and quick to assemble

• Cost-effective – shared tooling, bulk production, and smart structural design

• Retail-smart – made to sell, not just survive the shelf

How BPAC Services Can Help You Get Costco Ready

If you are a New Zealand food producer or FMCG brand looking to break into wholesale or warehouse retail markets, such as Costco, BPAC Services is here to help. Our services include:

• Costco packaging compliance consulting

• Retail packaging design and branding

• Product presentation and shelf readiness strategy

• End-to-end project management for market entry

Ready to make your product Costco Ready? Contact BPAC Services today to discuss how we can help your brand succeed in the competitive global retail landscape.

Check out my LinkedIn post about the Costco Showcase and how we help NZ suppliers get Costco Ready:
https://www.linkedin.com/posts/bobbylowedesign_fmcgconsultant-fmcginfluencer-nzretail-ugcPost-7345754515037483009-SmrH