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Costco can be a game-changing retail partner for beauty, wellness, and supplement brands. The scale is unmatched, the foot traffic is massive, and the velocity can transform a small brand into a nationally recognized one almost overnight. But the challenge remains the same for every emerging brand: funding production for a large Costco purchase order before Costco pays the invoice.
Costco PO funding solves that problem by giving brands the upfront capital needed to manufacture, package, and deliver inventory at Costco scale. This guide breaks down how it works, what it costs, and why it has become one of the most important financing tools for beauty and supplement founders in 2025.
Why Beauty and Supplement Brands Need PO Funding for Costco
Beauty, skincare, ingestibles, and nutraceuticals come with higher unit costs and strict compliance standards. When Costco places an order, brands often face:
- Large minimum order quantities
- High manufacturing deposits
- Specialized packaging requirements
- Quality, testing, and labeling regulations
- Extended Net 30–60 payment terms
For many fast-growing brands, these demands create a cash-flow bottleneck. PO funding removes this constraint and allows brands to accept and fulfill large Costco orders without delaying production or risking operational shortfalls.
How Costco PO Funding Works
Step 1: You Receive a Costco Purchase Order
The PO becomes the primary asset that lenders underwrite.
Step 2: Apply With a PO Funding Partner
Most lenders only request the PO, manufacturing quote, and basic financial documents. Approvals can happen within 24 to 72 hours.
Step 3: Funds Are Sent to Your Manufacturer or Co-Packer
Payments typically go straight to factories, supplement labs, skincare manufacturers, or packaging vendors.
Step 4: You Produce and Ship to Costco
Beauty and supplement brands must meet Costco’s strict packaging, compliance, and logistics requirements.
Step 5: Costco Pays the Invoice
Once Costco pays, the lender collects repayment and you receive the remaining margin.
What Brands Can Use Costco PO Funding?
This type of financing works especially well for:
- Skincare and cosmetics
- Haircare
- Nutritional powders and supplements
- Vitamins and functional wellness products
- Specialty beauty tools
- Personal care items
These categories tend to have higher production costs and regulatory hurdles, making upfront financing even more important.
Funding Amounts and Costs
In 2025, most Costco PO funders support:
- 70 to 100 percent of production costs
- Advances based on unit economics and margins
- Funding cycles tied to each PO
Typical costs range from:
- 1.5 to 3 percent per 30 days for PO funding
- 1 to 2 percent per 30 days if factoring is used alongside it
Because Costco is a high-quality credit buyer, advance rates and terms are usually more favorable than with mid-tier retailers.
Key Benefits for Beauty and Supplement Founders
- No equity dilution
- Helps secure and scale Costco relationships
- Supports rapid production timelines
- Covers costly upfront deposits for manufacturers and labs
- Reduces cash flow pressure
- Enables brands to take on multiple Costco regions
For categories where compliance, ingredients, and batch testing increase costs, PO funding becomes an essential financial tool.
Common Use Cases
Beauty and supplement founders often use Costco PO funding to:
- Launch into Costco for the first time
- Scale from local/regional rotations to national distribution
- Handle seasonal spikes and promotional rotations
- Meet testing, certification, and packaging requirements
- Fill unexpected or urgent POs
It’s designed to support brands that are scaling fast but need dependable capital to operate at big-box volume.
Final Thoughts
Costco is one of the most influential retail channels for beauty and supplement brands, but growth happens only when you can fund the production that Costco demands. Costco PO funding gives founders the cash flow stability to accept large orders, maintain quality, and deliver on time without giving up equity or slowing down growth.
With the right funding partner, a single Costco PO can turn into repeat orders and long-term expansion across multiple regions in 2025.
