Costco is legendary for a few things: the $1.50 hot dog meal, the $5 rotisserie chicken, and the cheapest gas in town.
Costco is also acclaimed for its commitment to customer service, which may explain why the company added around 5 million new members during 2023-2024, bringing the total membership to more than 78 million, according to its fiscal Q2 2025 earnings call in March.
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Costco has been on a growth streak. The company plans to open 29 new locations in 2025 (including 3 relocations), with a focus on Canada, Mexico, Europe, and Asia.Â
One reason the company is growing is undoubtedly because it lives by a code of ethics that involves “Obeying the law, taking care of members, taking care of employees, respecting suppliers, and rewarding shareholders,” said Costco CEO Ron Vachris at a talk he gave at Seattle University in March.Â
“Our mission and our business is to continually provide members with quality goods and services at the lowest possible price,” Vachris said.
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Costco’s insane return policy
Another beloved Costco-ism? A 100% satisfaction guarantee on most items. That means most items can be returned at any time, with no time limit.Â
Costco’s return policy allows customers to bring back most items at any time. No receipt? No problem, since every purchase is tracked via members’ cards.Â
There are restrictions on certain items but they are the exception, not the rule. For example, there’s a 90-day limit on electronics and major appliances (refrigerators, washers, dryers, dishwashers, etc.).Â
And some items, like 1.0 carat or larger diamonds, require extra oversight from Costco’s gemologist. But for most everyday goods, the process is simple: Bring your membership card and the item you’re returning to the membership/customer service desk and get a refund instantly.Â
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If you purchased your items online, return shipping is free for most items. Even crazier, Costco will come and pick up large items such as appliances and heavy furniture from your location. For free.Â
The ask-no-questions approach has paid off for Costco, which is now the world’s third-largest retailer. Fans of the store say the policies foster long-term loyalty.Â
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As @costcopanda put it on Reddit: “Accepting any and all returns (with limited exceptions) opens the door very wide to product feedback. We’re basically paying for reviews with every return. “Too salty”? Okay, here’s your $9.99, thanks. When you return an item, the clerk enters a reason (from a preset list) and a comment (whatever you say). The buying staff can then sort and filter through that data. That data is extremely valuable in a number of ways. The return policy both saves and makes us money. Abusers eventually out themselves and are handled.”
Costco’s refund policy goes beyond
Most retailers have a 14-90 day window for returns. Amazon’s standard return window is 30 days, and Target and Walmart’s is 90 days for most items (electronics are an exception). But Costco doesn’t have such limitations. This gives customers a feeling that their purchases come with a lifetime guarantee.Â
Costco’s return/refund policy even extends to the membership fee.
“The most important item we sell is the membership card,” Vachris told Fortune.Â
Related: Popular appliance sold at Costco recalled for dangerous glitch
Yet if you’ve had that Costco membership for a year and decided you don’t like it, the company will refund the entire membership fee, even if you’ve been using your membership on a regular basis.
Just don’t take things too far. Costco has been rumored to cancel the memberships of people who abuse the company’s policy. On the company website it says: “Costco reserves the right to limit or decline returns in cases of excessive or fraudulent return activity.”Â
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