Here's What Actually Happens To Returned Food Items At Costco

One of the most notable of the many perks of a Costco membership is the chain's extremely generous returns policy. Most items have no time-limits on when they need to be returned, and forget about searching for old receipts, as all purchases are tracked via a member's card. Maybe your Christmas holiday cookies didn't live up to your expectations, but have you ever wondered what actually happens to food items once they've been returned? 

Well, the fate of returned items at Costco depends on whether the item is perishable or non-perishable. For perishable food items — even if they're unopened, vacuum sealed, or still frozen – Costco's standard policy is simple: Throw it away. Once food leaves the store, Costco cannot guarantee its quality. Employees have no way of knowing if it was stored properly at home — maybe the fridge wasn't cold enough, or frozen items were thawed and then refrozen, making the food unsafe to consume. Reselling returned perishables would be a huge liability risk, even if they look to be in perfectly good shape. 

Luckily, not all returned Costco products end up in the trash. Non-perishable items like clothing or electronics that are still in good condition are usually just resold at lower prices. For items that are not resellable, they're usually returned to the original vendors, who give Costco full or partial credit on the item. Also, some returned items are sold by Costco to bulk-buy outlets, which purchase excess of returned stock in large quantities and resell it through discount retailers or liquidation stores. 

Costco's returns policy is based on a "100% satisfaction guarantee," and from internet tales on bizarre returned items, it seems that it takes this policy very literally. From whole, eaten turkey carcasses to urine-stained mattresses, the returns policy frequently crosses the boundary between reasonable and absurd. But is there a limit to its leniency? 

While not a strict guideline, several customers have claimed to be told that at least 50% of the food item needs to be present in order to be refunded — which seems fair, right? Per the membership terms and conditions, Costco reserves the right to cancel memberships for any reason. While many membership cancellations are the result of serious infringements such as theft or unacceptable behavior, one of the most common reasons for membership revocations is abuse of its generous returns policy. In one case, a customer was threatened with membership cancellation after returning an item bought several years ago. In several other instances, frequent returns have been flagged by Costco, which then gave members a choice between a refund and a membership cancellation, or just keeping the item. 

While there is no set-in-stone guidance on what constitutes a breach of good faith, the line is generally quite self-explanatory to the average shopper. To stay on the safe side, return only items that are defective, and if you're not actively trying to take advantage of Costco's goodwill policy, you should have no issue returning!