Costco is a truly unique store. Not only does it offer an impressive range of products and services at affordable prices, it also has its own Kirkland product line with interesting bargains that you won’t find anywhere else.
But whether you’re a current Costco member or considering joining, it’s important to familiarize yourself with the ins and outs of the store. Here are a few lies you may have been told about Costco that you shouldn’t believe.
1. You can return any item at any time
It’s true that Costco generally allows customers to return any item at any time. But there are limits to that generous return policy.
First, electronics and major appliances only have a 90-day return window. If you take a stove or a laptop beyond that point, don’t expect to get your money back.
Second, certain items cannot be returned to Costco after you purchase them. This includes cigarettes, alcohol, gift cards, event tickets, and gold bars.
Likewise, you may have heard that you can return items to Costco years later if they are in worn, rotten condition. While you may technically speaking If you can get away with returning a two-year-old winter coat that’s falling apart at the seams, you run the risk of having your membership revoked, as that’s a pretty clear abuse of the retailer’s return policy. And if your return is truly unreasonable, Costco can just say no.
2. You can order anything you want online without a membership
You don’t need to have a Costco membership to place orders on Costco.com. However, non-members will pay 5% more on their purchases because they don’t pay Costco’s annual fee. So you’ll need to crunch the numbers to make sure those fees make sense.
If you normally spend $1,500 a year at Costco.com, 5% of that is $75. In that case, it would be cheaper to purchase a basic annual membership for $65 and save some money.
Additionally, some Costco.com items are designated as members-only, meaning you can’t buy them without entering a member ID number at checkout.
3. The upgrade to the Executive membership is not worth it
While a Gold Star membership at Costco costs just $65 per year, an Executive membership costs double that amount. But that more expensive membership comes with a huge perk: 2% cash back on your Costco purchases. So before you assume that the Executive membership doesn’t make financial sense, crunch the numbers.
If you spend more than $3,250 per year at Costco, including online orders, then upgrading is your best bet. That’s because 2% of $3,250 is $65, which is the cost of the upgrade. If you’re spending even a dollar more, you’ll want to financially benefit from the more expensive membership.
There’s a lot of misinformation out there about Costco, so it helps to know the truth about the store’s return policy and online deals for non-members. It’s also important to do the math behind the Executive Membership before you write it off as an option that makes sense for you.
The Best Credit Card to Use at Costco (and Everywhere Else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is one of America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you can ever earn and an unlimited 2% cash reward on purchases, even when you shop at Costco.
Add to that the competitive 0% interest period and it’s no wonder we named this card the Best No Annual Fee Credit Card.
Click here to read our full review for free and sign up before the $200 welcome bonus expires!
We are firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by the advertisers included. The Ascent does not cover all offerings in the marketplace. The Ascent editorial content is separate from The Motley Fool editorial content and is created by a different team of analysts. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.
3 Lies You’ve Been Told About Costco was originally published by The Motley Fool
