What's Costco's Best-Selling Product? The Answer Might Surprise You

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Pop Quiz!

What do you think is Costco's best-selling item? Is it,

1. Kirkland brand toilet paper
2. Costco Gasoline
3. Costco's rotisserie chicken

While all three Costco buys are popular, and all for good reason (value, mostly), one item ranks above the rest as the top dog, the heavyweight champion of the Kirkland world, the best-selling of all of Costco's thousands (millions?) of items.

Drumroll please!

And the answer is…our pandemic breakout star, toilet paper!

Fun fact: At the height of the pandemic, when toilet paper was scarce, Costco, "chartered three ocean vessels to transport {toilet paper and other items} between Asia and the United States and Canada," according to The New York Times .

Why is Costco's Kirkland Signature Bath Tissue No. 1?

Costco sells over a billion rolls of toilet paper a year, and that in turn brings in almost a half a billion dollars in revenue. This TP is so popular for two reasons. First, it's a bargain. At 30 rolls for about $23, Costco's toilet paper is far cheaper than, say, Charmin (which sells 24 "Ultra Soft Bathroom Tissue Rolls" for $35 on Amazon).

In addition, Costco toilet paper works well. Costco spends considerable time and effort analyzing its toilet paper and ply, making sure it's strong enough, and white enough, to pass muster with the consumer.

Finally, and interestingly, Costco toilet paper is sustainable. The product is certified by the Forest Stewardship Council which mandates that the paper originate from responsibly managed forests.

We're No. 2!

Costco's rotisserie chicken comes in a close second, and it's not hard to understand why. They are delicious, savory, succulent, and, yes, quite affordable. A Costco chicken is a tasty inexpensive meal for a family. (Or if you are like me, for a family's finicky dog who LOVES Costco chicken, but, alas, only on Day 1. Ha!)

Costco sells an astonishing 100 million rotisserie chickens each year, or about 150 chickens per store per day, at a cost of just $4.99 each. The rotisserie chicken has been sold at this price point for over a decade, despite rising costs.

Costco uses a tried and true business strategy for the chickens, the "loss leader." It costs more than $5 each for Costco to produce and sell each chicken, so each chicken is sold at a loss. But, this great deal leads to people coming into the store to buy cheap chickens, and a lot more, so it's worth it to take a loss on the chickens because they lead to more sales. Loss leader, see?

The juicy chicken is marinated, seasoned, and cooked on a spit, allowing the fat to baste the meat as it cooks. Costco built its own chicken processing plant in Nebraska in 2019 to help control costs and maintain the low price of the rotisserie chicken.

Like the paper in its TP, Costco also focuses on sustainability for its chicken production. Animal welfare is paramount, too. Costco aims to provide a product that is not only affordable, but also ethically sourced.

Costco does a lot of things right to give shoppers a lower credit card tab -- notably when it comes to creating quality products that people love at low, low prices.

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