f you are a Costco shopper, you are likely familiar with Costco’s guaranteed return policy (with the exception of certain electronic equipment). You may read Costco’s full return policy here: http://www.costco.com/returns-replacements-refunds.html.

How does this policy affect you as a vendor, or a potential vendor? Many manufacturers and service providers find the guaranteed return policy to be intimidating; however, the percentage of sales to returns is often much lower than many vendors anticipate. If an item has a larger than expected return rate, this is likely due to an issue with the product or the instructions, rather than the member simply changing their mind.

All in all, Costco’s guaranteed return policy should not be a reason to avoid the enormous potential a Costco program has. If this is a large concern, VendorCo can help put you at ease by efficiently planning for inevitable returns, reviewing your product instructions and packaging to keep the return rate low, providing data to explain typical return rates and reasons for return, and answering any unique questions you may have.

To take advantage of our expertise and understand of Costco’s return policy, contact us today at (949) 326-8909 or [email protected].