The Costco Return Policy That Sam's Club Simply Can't Beat

There are a lot of reasons to love Costco, from the convenience of buying in bulk to the steadiness of its famous $1.50 hot dog combo. But one of the best reasons actually concerns getting money back from the big box chain, not spending it. And Sam's Club, perhaps Costco's biggest rival, doesn't hold a candle to it.

Costco is well-known among its loyal customers for a generous return policy. With a handful of exceptions, you can return anything at Costco at any time, with or without a receipt or its original packaging. You can even return alcohol at Costco, depending on local laws. There are some exceptions, most notably a 90-day window for returning electronics, as well as other limits on some less common items like diamonds and tires. There are a few products, like cigarettes and precious metals, that cannot be returned.

For shoppers, by far the biggest advantage of this return policy is its leniency, especially compared to Sam's Club. But some shoppers pushing the boundaries of the return policy might ruin it for everyone — and make Sam's Club more competitive.

On paper, Sam's Club has a virtually identical return policy. Generally, you can also return any item at any time, with or without a receipt (though a receipt makes it easier). Sam's Club even has a similar 90-day return window for electronics, along with somewhat more restrictions on other items. Notably, cell phones bought there can only be refunded within 14 days of purchase.

Unlike Costco, however, Sam's Club requires an item's original packaging to complete a refund. It also reserves the right to restrict a member's ability to make returns for suspected fraud or abuse of the policy, even stating that it may electronically reverse previously-issued refunds.

This return policy may still sound generous, if less so than Costco, but customer complaints about refunds are one of the things Sam's Club doesn't want you to know. In 2018, a class-action lawsuit over the chain's alleged failure to abide by its return policy for fresh products resulted in a $6 million settlement.

Costco's unusually generous return policy is arguably a magnet for people to take advantage. There have been many eyebrow-raising returns over the years, egged on by a TikTok trend of outlandish refund requests. Under the policy, customers have returned unusable items like dirty toilets, soiled rugs, partially-eaten food, and desiccated Christmas trees. In one viral case, someone returned a couch they had used for over two years after simply getting tired of the color.

Other Costco customers are concerned that they're ultimately footing the bill for frivolous returns like a mostly eaten watermelon, comparing examples like these to theft. Such use of the return policy raises worries that Costco will clamp down, as it did in 2007 when customer abuse prompted the 90-day window for electronics returns that Costco still enforces.

Though the electronics policy may ultimately be foreshadowing, the good news is that forgiving return policies are thought to increase customer loyalty and overall spending. So, unless people push Costco's margins to the brink with unusual refund requests, its generous return policy will likely continue to be one of the reasons Costco beats Sam's Club every time.