My Costco Publishing Experience: What I Learned

🔥

According to Costco, I was the first POD publisher allowed to sell books in Costco back in 2012.

My writing partner and I got our book into eight Costco stores across North Carolina and Arizona, selling approximately 400 books. Each store was initially allotted about 70 copies because we were first-time authors. But getting there was quite a journey—and there are some lessons I'd do differently today.

How It Started:

My journey began with a childhood friend who had written a children's story. At the time, I was an Apple developer creating interactive children's books. He asked me to publish and illustrate his story, and we agreed to split all revenues and expenses.

This was before AI, so everything was considerably more labor-intensive.

Unfortunately, the experience ultimately destroyed our friendship.

That's probably lesson number one:

Never go into business with a friend without a very clear written agreement.

Define ownership, expenses, responsibilities, royalties, decision-making, and what happens if one person wants out.

How We Got Into Costco

My partner knew a Costco manager in North Carolina, and the original plan was simply to have a book signing at that store.

I decided to see if we could do more.

I contacted Costco Corporate and eventually connected with their overall buyer. I proposed a multi-store signing program across North Carolina and Arizona.

The buyer told me that at the time, the only way to get our book into Costco was through a distributor.

That created a problem.

Most major distributors wanted established publishers with multiple books already selling. I had one book—and it wasn't even published yet.

Eventually I found Ingram, who was willing to work with me, provided I met their requirements.

Where It Got Expensive

One requirement involved large promotional posters. Originally, I was looking at approximately $400 per store for two posters.

I negotiated that down to about $50 per store using POD.

Lesson: Negotiate everything.

The bigger problem was shipping.

I had to pay shipping and handling fees for unsold books. Even though I lived about ten minutes from one Costco, books had to be shipped to Pennsylvania and then shipped back to me.

So I was paying:

Costco → Pennsylvania → Arizona

instead of:

Costco → my car → my house.

Across eight stores, those costs added up quickly.

I also couldn't simply set my own retail price. The book had to sell for approximately $5.99.

This taught me an important lesson:

Revenue is not profit.

Always calculate printing, retailer discounts, distributor fees, shipping, returns, and promotional costs before celebrating a big retail opportunity.

The Good News: Costco Was Fantastic to work with.

I dealt with the corporate buyer and individual store GMs. The stores provided the table, chair, signing location, and usually signs at both the entrance and signing table.

The staff were friendly and accommodating.

I'd also strongly recommend bringing another person to a signing. While you're talking to customers and signing books, your helper can distribute bookmarks, bring people to the table, and keep things moving.

Although I wasn't the author, I created stickers saying:

"Signed by the Illustrator."

It gave me another way to participate in the signing.

The Biggest Problem

My biggest frustration wasn't Costco.

It was the distributor.

Customer support was difficult, and returns could become expensive. In some cases, unsold books could have their covers removed rather than being returned as sellable inventory.

Always understand a distributor's return and destruction policies before signing anything.

PROS

Major retail credibility
Excellent exposure
Direct customer interaction
Costco was professional and accommodating
Great learning experience
Negotiation can significantly reduce costs

CONS

Distribution and shipping can destroy your margins
You may have limited pricing control
Unsold inventory creates risk
Distributor requirements can be difficult
Customer service may be frustrating
Retail exposure doesn't automatically mean profit
Business partnerships can damage friendships

What I'd Do Differently Today

1. Start With the Numbers

Calculate:

Retail Price − Discounts − Printing − Distribution − Shipping − Returns − Marketing = Actual Profit

If the numbers don't work, don't do the deal.

2. Negotiate Everything

Ask about shipping, handling fees, returns, damaged books, minimum quantities, payment terms, and local pickup.

Get it all in writing.

3. Protect the Partnership

Have a written agreement covering ownership, expenses, royalties, responsibilities, intellectual property, and what happens if the partnership ends.

4. Build an Audience First

Today, I'd build an email list, social media following, reviews, a website, and direct sales before pursuing major retail. I'd also suggest getting on as many podcasts, local facebook groups, advertising your signing, and even radio stations.

5. Don't Forget Direct Sales

Retail gives you reach and credibility.

Direct sales give you better margins and customer ownership.

Ideally, you want both.

Action Items for Independent Publishers

Before approaching a major retailer:

☐ Professional book and cover

☐ ISBN (Bowkers)

☐ Reviews/testimonials

☐ Sell sheet

☐ Wholesale pricing

☐ Profit calculation

☐ Website

☐ Marketing materials

Before signing with a distributor:

☐ Understand all fees

☐ Calculate shipping and return costs

☐ Understand damaged-book policies

☐ Ask about destruction/cover removal

☐ Understand payment terms

☐ Get everything in writing

For the signing:

☐ Bring a helper

☐ Bring bookmarks/giveaways

☐ Prepare a short sales pitch

☐ Have a QR code to your website

☐ Track sales and customer feedback

The Bottom Line

Would I do it again?

Yes—but differently.

Getting into Costco was one of the most valuable experiences of my publishing career. We sold approximately 450 books across eight stores and learned first-hand how major retail distribution works.

But here's the lesson I wish every independent publisher understood:

Getting your book onto a retail shelf isn't the goal.

The goal is:

Get on the shelf → sell books → make money → get reordered → repeat.

That's a publishing business.

There is a part 2 and that is why I stopped pushing this book... If you want to check it out: https://a.co/d/0bMxSn1L

10 comments

My Costco Publishing Experience: What I Learned