Tuesday, February 27, 2007

Costco changes its return policy

Costco is the ultimate dream for an electronics lover. Not because they have the widest selection of products, but because their "no questions asked, full refund" return policy was one of the best in the business. Don't like your latest high definition plasma TV or top of the line Intel processor based PC? That's okay, return that sucker for a full refund after it's been used and abused! The depreciation of electronics, especially computers nowadays is astounding. So by returning these products Costco loses money. Hence, they ended up changing their policy to 6 months for computer returns.

Many people respected their return policy and many people abused it. Well, it looks like now Costco has dropped the hammer and decided to make some drastic changes. Some people were buying high definition TVs and returning them two-three years later for the newer (and cheaper) model! This was causing concern so now, the policy has changed according to their website:

Membership: We will refund your membership fee in full at any time if you are dissatisfied.

Merchandise: We guarantee your satisfaction on every product we sell, with a full refund. Exceptions: Televisions, computers, cameras, camcorders, iPOD / MP3 players and cellular phones must be returned within 90 days of purchase for a refund.

How to Return: Simply return your purchase at any one of our Costco warehouses worldwide for a refund (including shipping and handling). If you are unable to return your order at one of our warehouses, please email customerservice@costco.com or call our customer service center at 1-800-955-2292 for assistance. To expedite the processing of your return, please reference your order number.

This new policy toward electronics will start out in California and then the rest of the continental USA. I am assuming this will also affect the Canadian market in the future.I admit it, I've been a culprit of maximizing their return policy. Here's an example of their lenient policy. One time I had a portable table top barbecue returned (it was only worth $50). What was the problem you ask? Well, the lid was painted red and I noticed that the paint on the inside was MELTING during cooking. That is not a good thing. I ended up returning the barbecue to Costco for a full refund. What makes this story interesting? The barbecue was just under a year old, I had no box, and no receipt! I got my refund, walked back into the store and purchased the exact same barbecue--but now it had a stainless steel lid! Go figure. But I have never returned a high definition TV after a couple years, that's stretching it a bit too far.