Costco Returned Items - Where Do They Go?


Many people on the internet are looking to find out what happens to Costco returned items. They are looking to take advantage of them for individual use or to resell them to customers through a retail business.

In order to have a better understanding, we will talk about where Costco returned items comes from and why they process them the way they do.

With the very flexible returns policy employed at Costco, consumers can return items to this giant wholesale company even if they have been used and/or damaged. Recently, however, Costco has made the policy stricter, by only allowing high priced items to be returned within the first 30 days of purchase if the consumer feels they are faulty.

Consumers continue shopping at Costco because a receipt is not needed in order to return items to the store. Costco is able to do this because this wholesale store is based on membership shopping. This allows them to search their computer to find purchases that are made on each membership. This also enables them to be certain you are not returning any stolen goods and trying to get a refund.

Once a return is processed, Costco places it in a returns bin in the warehouse. Many returns are damaged items, wrong sized clothing, and items consumers decided they did not want. Since Costco cannot be sure of what items consumer will return, the returns bin has a very large variety of items.

In order to save time and money this wholesale giant does not go through the items that get returned. Instead, they establish contracts with liquidation merchants who make a bulk purchase of Costco returned items. Costco does has the same process for overstocks, liquidations, and closeouts.

Most of the liquidation merchants who contract with Costco for returned items will also be wholesale suppliers dealing with end-retailers. With this in mind, if you are a retailer who desires to purchase stock which is highly discounted, in order to make a bigger profit, you will want to look into sourcing Costco returned items from your wholesale supplier. This can be a very effective way to get high quality, inexpensive items for your business to sell.

You have to use caution with these products, however. As mentioned earlier, Costco does not guarantee what products are in the returns bin, thus, they may not be “grade-A” quality. In truth, when making a bulk purchase of Costco returned items from your wholesale supplier, you need to expect items in various conditions.

Unfortunately, for those looking to make drop shipping arrangements, it is difficult to drop ship Costco returned items. The only way to do this successfully is to resell them in bulk to your customers. This can be a viable option if your customers are people looking to buy discounted goods to sell on eBay or at local flea markets.

In order to prevent Costco returned items from being returned to Costco a second time, Costco employs a practice of discreetly marking all returned items as returns. This is a fraud prevention strategy that was put into place so wholesale agreement can continue to be made and people can profit on all ends.

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  1. #1 by Brad Smith - November 1st, 2009 at 19:20

    Do you have to sign a 1 year contract with Costco in order to obtain loads.

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