Buying a new smartphone is a big decision, and one that often comes with a significant financial investment. With countless options on the market at various price points, features, and specifications, it can be daunting to choose a device that you‘ll need to rely on every day.
That‘s why it‘s so important to understand a retailer‘s return policy when you‘re shopping for a new phone. If you purchase a phone that doesn‘t meet your needs or expectations, you want the flexibility to return or exchange it without hassle. And when it comes to return policies, few retailers can match Costco‘s generous terms, especially for smartphones.
Costco‘s Phone Return Policy: The Basics
Let‘s start with the key details of Costco‘s return policy for phones:
- Costco accepts returns on all phones (excluding prepaid phones) within 90 days of purchase, whether you bought the device in-store at a Wireless Advocates kiosk or online at Costco.com.
- Phones can be returned to Costco even if they have been opened and used, as long as you have all the original packaging and accessories.
- You‘ll receive a full refund to your original form of payment, as long as you provide the receipt or your Costco membership number.
- While Costco gives you a full 90 days to return a phone, you must cancel your wireless service contract with the carrier within 14 days of purchase to avoid any early termination fees.
- Phones that are defective or damaged out of the box are also eligible for return or replacement within the 90-day window.
Costco‘s no-questions-asked return policy on phones is among the most lenient in the retail industry, giving members plenty of time to test out a new device and make sure it suits their needs. It‘s all part of Costco‘s risk-free 100% satisfaction guarantee.
How Costco‘s 90-Day Policy Compares to Other Retailers
To put Costco‘s 90-day phone return policy in perspective, let‘s look at how long some of their major competitors give customers to return a cell phone:
| Retailer | Standard Phone Return Period |
|---|---|
| Costco | 90 days |
| Amazon | 30 days |
| Apple | 14 days |
| Best Buy | 14 days (or 30 days for My Best Buy Elite members) |
| Target | 14 days |
| Walmart | 14 days (postpaid) or 15 days (prepaid) |
As you can see, Costco‘s 90-day return window is significantly more generous than the policies offered by other national retailers, which typically only allow returns within 14-30 days of purchase. This gives Costco members much more flexibility to try out a phone and ensures they can get a refund if they‘re not completely satisfied.
It‘s important to note that while Costco‘s return period is 90 days, most carriers only allow you to cancel a new service contract or installment plan without penalty within 14-30 days of opening the account. After that, you‘d typically be subject to any early termination fees outlined in your contract. So if you do decide to return a phone to Costco after the carrier‘s grace period for cancellations, you would still be responsible for any fees assessed by your provider.
Understanding Costco‘s Phone Offerings
To take full advantage of Costco‘s phone return policy, it helps to know what kind of devices and deals the retailer offers. Costco sells a variety of smartphones both in-store and online, with a focus on the latest models from top brands.
Cell Phones Sold at Costco Warehouses
Inside Costco warehouses, most cell phones are sold at the Wireless Advocates kiosks. These in-store wireless centers are operated by Wireless Advocates LLC, an authorized dealer for several major carriers. Depending on your location, the Wireless Advocates booth at your local Costco sells postpaid phones and plans from one or more of the following providers:
- AT&T
- Verizon Wireless
- T-Mobile
The specific phone selection at each Costco kiosk will vary, but you can generally expect to see the latest flagship devices like iPhones, Samsung Galaxy phones, and Google Pixels. Mid-range and budget-friendly models are sometimes sold as well. Some of the phone brands frequently spotted at Costco Wireless Advocates kiosks include:
- Apple
- Samsung
- Motorola
- LG
When you buy a phone at the Wireless Advocates booth inside a Costco warehouse, you‘ll need to sign up for wireless service from the applicable carrier, often with special Costco member pricing or promotions like waived activation fees. Phones may be offered on monthly installment plans to allow you to spread out the cost of the device over 24-36 months.
All phones purchased at an in-store Wireless Advocates kiosk are eligible for return within 90 days. We‘ll cover the exact steps for returning a phone to a Costco warehouse a bit later.
Buying Cell Phones on Costco.com
In addition to the in-store kiosks, Costco also sells a range of unlocked (non-carrier-specific) smartphones on its website at Costco.com. The online phone selection focuses mainly on unlocked models from these top brands:
- Samsung
- Motorola
- Nokia
While Costco.com does sell some iPhones, the online options for Apple‘s phones are typically limited to older models rather than the latest releases. In any case, iPhones and other Apple products purchased online are not eligible for Costco‘s standard return policy and must be returned in-store instead.
The unlocked phones sold online come with the benefit of not being tied to any particular carrier or service plan. You can choose to use them with an existing cell phone plan or shop around for the best deal on a new plan from the carrier of your choice. These phones are covered under the same 90-day return policy as devices purchased in-store.
As one of the largest retailers in the US, Costco moves an impressive volume of cell phones and accounts for a notable portion of the domestic smartphone market. While the warehouse club doesn‘t break out specifics on phone sales, we can glean some insights from industry data:
- In the first quarter of 2023, Apple and Samsung combined for over 75% of smartphone sales in the US, according to Counterpoint Research. As Costco carries the latest iPhone and Galaxy models, it likely captures a healthy chunk of those sales.
- A 2022 survey by Consumer Intelligence Research Partners found that warehouse clubs (Costco and Sam‘s Club) accounted for roughly 12% of total iPhone sales in the US.
- Costco‘s sales of wireless phones and related products topped $1 billion in 2021, according to an estimate from industry publication FierceWireless.
- In a 2019 survey of more than 1,000 US consumers by umlaut (formerly P3), 74% of respondents said they would consider purchasing their next cell phone from a wholesale club like Costco.
These figures suggest that Costco is a major destination for cell phone shoppers, especially among the warehouse club‘s affluent, high-spending member base. And with Costco‘s unparalleled return policy, it‘s easy to see why the retailer has built such a loyal following of tech buyers.
How to Return a Phone Purchased In-Store at Costco
If you buy a phone at the Wireless Advocates kiosk inside a Costco warehouse and decide you want to return it, the process is fairly straightforward. As long as you‘re within the 90-day return window, simply bring the phone along with all accessories, packaging, and paperwork to the returns desk at any Costco location.
Be sure to also bring your original receipt and your Costco membership card. If you don‘t have the receipt handy, a Costco associate should be able to look up the purchase using your membership number. However, it‘s always best to hold onto your receipt for any big-ticket items like cell phones in case you run into any problems.
Costco will typically inspect the condition of the phone and verify that all accessories are present before processing the return. Assuming everything looks good, you can expect a full refund to your original method of payment (cash, credit card, or debit card).
It‘s worth noting that if you paid for the phone in full upfront, the entire purchase price will be refunded to you. But if you purchased the phone on a carrier installment plan or other financing agreement, Costco will only refund you for any payments you‘ve made to date. You‘ll still be responsible for the remaining balance on the phone, either by returning it to the carrier or paying off the rest of the installment agreement.
Canceling Your Wireless Service Contract
As mentioned earlier, buying a phone in-store at Costco requires signing up for a wireless plan with AT&T, Verizon, or T-Mobile (depending on the kiosk). If you return the phone within the carrier‘s grace period for cancellations – usually 14-30 days from the start of service – you should be able to cancel your contract without incurring any early termination fees.
However, if you wait until after this grace period to return the phone and cancel your service, you‘ll likely have to pay a significant fee for ending the contract early. These fees can vary by carrier and the specifics of your contract, but they often start at $150-350 and are prorated based on how many months are left on your agreement.
To avoid any surprise charges, it‘s best to return the phone and cancel service as soon as possible if you decide the device or plan isn‘t working for you. Even if Costco will accept the return for a full 90 days, you still need to deal with the wireless provider directly to cancel service and avoid extra costs.
Costco‘s Online Phone Return Process
If you purchase an unlocked phone from Costco.com, the return process is a bit different than for in-store purchases. Costco allows you to return online orders by mail within 90 days, with a few exceptions (like cell phones that have been activated on a carrier‘s network).
To initiate an online return, follow these steps:
- Sign in to your Costco.com account and navigate to the "Orders & Returns" section.
- Locate the order containing the phone you want to return and select "Return Items."
- Choose the phone from the list of items in the order and select a return reason from the dropdown menu.
- Print the prepaid return shipping label provided by Costco and affix it to your return package.
- Place the phone, along with all original accessories and paperwork, in the manufacturer‘s box if possible. If you don‘t have the original box, use a sturdy shipping box and include padding to prevent damage in transit.
- Seal the box securely with packing tape and drop it off at your local UPS store or other authorized shipping outlet.
Once Costco receives your returned phone at their warehouse, they will typically process the refund in 3-5 business days. The purchase amount will be credited back to your original payment method.
Keep in mind that you can also return online phone purchases at any Costco store. Simply bring the device, accessories, and packaging to the returns desk and present your order confirmation email or packing slip to the associate.
Returning Phones Purchased From Costco As Gifts
If you received a phone as a gift from a Costco member, you can still return it even if you‘re not a member yourself. You‘ll need to provide the original receipt or have the membership number of the person who bought the phone.
If you have a gift receipt, simply bring the phone and all accessories to the customer service desk at any Costco warehouse to process the return. You‘ll receive a refund in the form of a Costco Shop Card, which functions like a store credit that can be used towards future Costco purchases.
Without a receipt, the Costco associate may still be able to look up the purchase using the phone‘s serial number, IMEI number, or the purchaser‘s membership number. However, there‘s no guarantee they‘ll be able to locate the order, so it‘s always best for the gift giver to include a gift receipt when possible.
Tips for Avoiding Phone Returns
While Costco‘s generous return policy certainly provides peace of mind, most shoppers would prefer to avoid the hassle of returning a phone altogether. Here are a few tips to help you choose the right device and reduce the likelihood of buyer‘s remorse:
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Do your research: Before heading to Costco to buy a new phone, spend some time researching the current smartphone landscape and zeroing in on a few models that interest you. Read professional reviews, compare specifications, and set a budget to help narrow down your options.
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Consider your must-have features: Think about what you use your phone for most and what features are essential to you. If you take a lot of photos, prioritize a device with a high-quality camera. If you‘re always on the go, you may want a phone with long battery life or fast charging capabilities.
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Assess your storage needs: Modern smartphones can quickly fill up with apps, photos, videos, and other files. Consider how much space you‘ll need and look for a phone with adequate built-in storage or expandable memory options.
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Understand the different operating systems: If you‘re switching from an iPhone to an Android device (or vice versa), spend some time playing around with the new OS before making a purchase. Make sure you‘re comfortable with the layout, features, and app selection.
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Test phones in person: Once you have a shortlist of potential phones, head to your local Costco warehouse to see them in person. The Wireless Advocates reps can walk you through the features of each device and let you hold them to get a feel for the design and user experience.
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Don‘t overbuy on specs: While it‘s tempting to spring for the phone with the biggest screen, the most storage, or the highest megapixel count, you may not actually need all that extra horsepower. Sticking to your must-haves can help you avoid overspending on features you won‘t use.
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Review the activation process: Before you leave Costco with your new phone, make sure you understand any steps you need to take to activate it with your carrier. The Wireless Advocates rep should guide you through the process, but don‘t hesitate to ask questions if anything is unclear.
By following these tips, you can increase your chances of finding the perfect phone on the first try and minimize the odds of making a return. Of course, if you do end up needing to make a return or exchange, you can rest assured that Costco‘s unbeatable policy has you covered.
The Bottom Line on Costco‘s Phone Return Policy
When it comes to buying a new cell phone, Costco offers one of the most customer-friendly return policies of any major retailer. With a full 90 days to return your device for any reason, Costco goes above and beyond to make sure members are satisfied with their smartphone purchases.
To make the most of this policy, remember the following key points:
- You can return phones purchased in-store or online at Costco.com within 90 days for a full refund, even if the phone has been opened and used.
- Be sure to include all original accessories, packaging, and paperwork with your return.
- Bring the receipt or your membership number when returning a phone to a Costco warehouse.
- For online returns, use the self-service process on Costco.com to print a prepaid shipping label.
- Cancel new wireless service contracts within 14-30 days of activation to avoid early termination fees with your carrier.
- Consider returning phones bought as gifts to a Costco store rather than by mail.
While Costco‘s return policy is designed to make the experience as painless as possible for customers, it‘s always better to avoid returns in the first place. By doing your research, assessing your needs, and testing phones in person before you buy, you can find a device you‘ll be happy with for the long haul.
Whether you‘re a longtime smartphone buyer or a first-time shopper, Costco‘s unparalleled selection, member-only deals, and risk-free return policy make it a top destination for all your cell phone needs. And with the peace of mind that comes with knowing you can bring the device back if it doesn‘t work out, you can feel confident in your purchase and stay connected with a phone you love.
