Costco Tightens Return Policy

February 28, 2007




A New Electronics Return Policy Spells a Terrible Day for CRM
 
I frequently hear people talking about Costco’s amazing return policy and how they only purchase their electronics from the warehouse club. In addition I usually hear these comments as people simultaneously complain about terrible experiences they have had at other retailers. Usually these stories revolve around a product that quickly becomes defective and is subsequently unable to be returned.
 
Apparently many people were taking advantage of the extremely generous return policy and were subsequently returning products to buy a newer or cheaper version of the same product.
 
This is unfortunate as a few people have now ruined it for the rest of us. Costco has a new return policy.
 
Costco has until now allowed customers to return items at any time for a full refund, except for personal computers, where returns were limited to six months.
 
The new policy will give customers only 90 days to return televisions, computers, cameras, camcorders, portable music players and cell phones.
 
To put a silver lining in this consumer electronics cloud, Costco plans to extend the warranties on televisions and PCs for a total of two years. The company also plans to roll out a technical support line to help customers who may be returning gadgets because they are frustrated they can't get them to work correctly.
 
The company still believes they have the best return policy available anywhere and it will be worth watching to see how consumers react to this new policy and whether it will reduce sales of gadgets and electronics at superstores around the country.


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