Getting a product into Costco Canada is a big win, but Costco is one of the strictest retailers to ship to. Purchase orders arrive by EDI, deliveries must hit a set window, and every skid has to meet Costco’s pallet standards or it can be refused. A 3PL in Toronto that knows these rules keeps your Costco orders on time and protects you from chargebacks. This guide explains what Costco expects from suppliers and how a GTA 3PL like Newsom 3PL handles it for you.
What Costco expects from suppliers
Costco sends each order as a purchase order (PO), and every PO is treated as its own contract. The key rules most suppliers deal with are:
- EDI orders and invoices: POs, confirmations and invoices go through EDI, and the invoice is sent on the day of shipment.
- Delivery windows: each PO sets a delivery window and location. Freight that arrives more than two days early, or late, can be refused.
- Complete, accurate shipments: the PO number, supplier number, item numbers and actual scale weight must appear on the paperwork and bill of lading.
- Floor-ready skids: pallets are checked on arrival, and a skid that is damaged, wet or built wrong can be rejected.
- Penalties: missed windows, short shipments or packaging problems can lead to chargebacks or fewer future orders.
Always confirm the current requirements in your own Costco vendor documents, because rules can change and some items have extra conditions.
Costco pallet (skid) requirements at a glance
| Requirement | Typical Costco standard |
|---|---|
| Pallet type | Block pallets (for example CHEP, PECO or iGPS); stringer pallets are not accepted for general use |
| Size | 48 x 40 inches, with no product overhang |
| Height | Total load no higher than about 58 inches including the pallet |
| Weight | Up to 2,500 lb per loaded skid; the bottom layer must support the load |
| Condition | Dry, clean, sound and stable on arrival |
Building skids that pass inspection takes the right pallets, good stacking and stretch wrap, and correct labels. Our guide to SSCC labels and retailer routing guides in Canada explains the labelling side in more detail.
How a Toronto 3PL handles your Costco orders
At Newsom 3PL in Mississauga, near Toronto Pearson, we act as your warehouse and shipping team for retail orders. For Costco suppliers that typically means:
- Receiving and storage: we receive your inventory by container, LTL or parcel and store it on skids, ready for the next PO.
- Order processing: we work from your Costco POs and pick full skids or cases to match each order.
- Pallet building: we build Costco-compliant skids on block pallets, at the right height, with no overhang, wrapped and labelled.
- Paperwork: each shipment leaves with the PO number, supplier number, item details and actual weight on the bill of lading.
- Shipping on schedule: we book LTL or full truckload freight to meet the delivery window, from our location close to Highways 401, 427 and 410.
- DTC from the same stock: if you also sell online, we ship your Shopify or Amazon orders from the same inventory.
If you are new to retail distribution, our article on retail compliance shipping in Canada and our guide to B2B vs B2C fulfillment are good next reads.
Common Costco shipping mistakes to avoid
- Shipping without a confirmed PO, or with quantities that don’t match it.
- Using stringer pallets, or skids that are too tall or overhang the pallet.
- Arriving outside the delivery window, especially more than two days early.
- Missing PO or supplier numbers on the bill of lading.
- Sending the invoice late instead of on the day of shipment.
Each of these can turn a good order into a refused delivery or a chargeback. A 3PL with a clear process for retail orders removes most of that risk.
LTL or full truckload to Costco?
Smaller POs usually ship as LTL, where your skids share a truck with other freight. Larger orders, or several POs going to the same location, may justify a full truckload. We help you choose the option that meets the delivery window at the best cost. See LTL vs FTL shipping for a full comparison.
Frequently asked questions
Can a 3PL ship to Costco on my behalf?
Yes. Many Costco suppliers use a 3PL to store inventory, build compliant skids and ship each purchase order, while the supplier keeps the relationship with Costco.
What pallets does Costco accept?
For general freight Costco generally requires 48 x 40 inch block pallets, such as CHEP, PECO or iGPS, with no overhang. Check your vendor documents for any exceptions.
What happens if a Costco delivery is late or early?
Shipments that arrive more than two days early or after the window can be refused or cancelled, and repeated problems can lead to chargebacks.
Do you serve Costco suppliers across the GTA?
Yes. Our warehouse is in Mississauga, near Toronto Pearson, and we ship to retail locations across the GTA, Ontario and the rest of Canada.
Ship to Costco with confidence
Newsom 3PL helps Costco suppliers in Toronto and the GTA store inventory, build compliant skids and deliver every PO on time. Contact us with your products and order volumes, and we will put together a plan for your Costco orders. You can also learn more about our B2B distribution services and our 3PL services in Toronto.