Despite its liberal return policy, a Canadian retail analyst and expert is weighing in on whether Costco potentially tracks how often members visit its customer service desk to return items.
While customers have been documenting how they’ve taken back Costco products after years of use, Bruce Winder told Daily Hive that the retailer could be paying close attention if you make repetitive returns.
“Especially with today’s technology… retailers are monitoring customers’ data,” he said.
“And if you’re a serial returner… it’s not unrealistic for [a retailer] to treat customers who abuse things differently.”
Costco is known for its strong customer loyalty, and its return policy promises a “Risk-free 100% satisfaction guarantee on membership” and “guaranteed satisfaction on every product.”
A screenshot of Costco Canada’s full return policy (Costco)
The company’s Canadian website doesn’t mention a return window for furniture, but electronics like televisions, appliances, computers, cameras, and phones will be accepted “within 90 days from the date of purchase.”
Costco returns come with impacts
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Winder says that Costco’s liberal return policy doesn’t come without impacts.
“[It] does add to the cost of the product in the short term and long term. That’s a fact because vendors will have to factor that into their price,” explains the expert.
“So if a vendor keeps getting a lot of product back, they have a higher return rate.”
However, Winder says that Costco also gets a “benefit” from its return policy because it builds customer rapport and loyalty.
“Some people feel absolutely enamoured with them and say, ‘You know what, I’m only going to shop there because no matter what happens, they will take care of me if there’s a problem. ‘”
It also helps that Costco has a strong reputation for having “stringent” product testing procedures.
The products they sell are high-quality, notes Winder, which means that customers aren’t constantly running back to return items in the first place.
Could Costco’s return policy change?
Like Costco’s legendary $1.50 hotdog deal, Winder doesn’t expect anything to change with the big-box store’s return policy anytime soon.
That’s because the company takes customer satisfaction seriously.
“It’s one of those policies that really creates a positive perception of quality and when you peel back the math, it’s probably not costing them as much as you think,” explains the retail expert.
Winder notes that while Costco isn’t tightening the strings on returning items, other companies are taking action.
“Another parallel would be for the e-commerce world like Zara and H&M… now with some of these retailers, they charge you a restocking fee, and some say the only way you can return [is] through a store,” he said.
“So everyone is sort of tightening up their business models because it’s harder now — there’s more economic headwinds.”
Daily Hive has reached out to Costco for further comment.