Where Do Returned Items At Costco Actually Go?

Costco is known for its generous return policy, rooted in its 100% satisfaction guarantee on store merchandise. Indeed, the bulk retailer's no-hassle, no-time-limit returns (with the exception of some electronics, alcohol, and a few other specialty items) is likely the reason Costco return lines are so long. With all those returned items accumulating behind the counter, shoppers might wonder where they ultimately end up. The answer depends on the condition and type of item, but many returns are not resold in the warehouse.

Unopened, non-perishable items and a few opened ones, like clothes, might be restocked in the store if you're simply returning them because you changed your mind or because of a fit issue. Meanwhile, opened, used products will be sent to a large Costco returns warehouse where they are sorted and inspected to determine their condition. For example, an 860,000-square foot returns warehouse found in Monroe Township, New Jersey, processes returns from over 60 Costco warehouses as well as online orders.

Workers inspect each return, sending most viable non-perishable items to third-party liquidators or back to the manufacturer of the product who can sell it as an open-box item. Costco will receive a credit as part of the deal with the vendor. Some items cannot be resold and might be donated, such as ones with a cosmetic issue like a small stain. Others, like toothbrushes, will be recycled.

In case you weren't aware, there is a loophole for returning food at Costco that applies to perishables as well. The bulk retailer allows its members to return almost any type of food, including, unopened or opened perishable food that has expired, spoiled, or been damaged. Shoppers can even return foods they simply changed their mind about, purchased by mistake, or don't like after trying it. However, some folks on r/Costco agree that this could be considered wasteful if the opened product can't be donated.

Indeed, while some returned, non-perishable items, such as packaged, unopened, unexpired food, may be sent to local shelters or food banks, perishable and frozen foods like meat and produce cannot be restocked. As a safety precaution, these returned items are thrown away, even if they are unopened and unexpired. It is for this reason that some shoppers advise thinking twice before returning food because you bought the wrong item or changed your mind and to instead give it to a friend or family member.

However, there is debate about returning food items to Costco that you tried and do not like, with some people saying it's okay if you get a bad batch of something that normally tastes good. If you've ever wondered what Costco does with its unsold food, some items are donated to local food banks. According to its website, the store donates bread, protein, produce, and dairy to Feeding America.