Costco Caps CE Returns At 90 Days
by Alan Wolf -- TWICE, 2/27/2007
Issaquah, Wash.— Succumbing to profit pressure from its open-ended return policy on consumer electronics, Costco has capped the time limit on CE refunds to 90 days.
The No. 1 warehouse club hinted at the move last December when chief financial officer Richard Galanti said it would explore every alternative to reduce returns, including home TV installation and live tech support, before changing the customer-friendly policy. But the company ultimately pulled the plug after losing tens of millions of dollars in returns, mainly in big-screen TVs that consumers couldn't operate or which they exchanged for better and cheaper models as prices fell.
The new policy goes into affect nationwide in April, and applies to TVs, cameras, camcorders, MP3 players, cellphones and PCs, which previously had a six-month return period. The time frame for returns of all other products — including CE items purchased prior to the policy change — remains unlimited.
In keeping with its customer-focused philosophy, Costco's 90-day term still remains one of the most liberal in CE retailing, where a two-week window, often laden with restocking fees, is the norm.
In addition, Costco will extend the manufacturer's warranty on TVs and PCs by two years from the date of purchase, and will expand its free Concierge tech support service from California to all markets, covering TVs, PCs, cameras, camcorders and MP3 players.
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If the tv can not be taken care of they will then allow a normal return of it, so thats a mute point. I mean seriously were talking all about major brand names here any wayz. apple sony vizeo samsung etc i tell you what though I bet more ppl wish they bought those xobx 360s form costco, those still have unlimited return policy, and u know those things have an uncomfortable faileure rate.
na - 2007-21-7 21:12:00 EDT -
As a Costco member, I am both pleased and appalled by this news. On one side, the rampant abuse of the return policy needed to be stopped, so the 90-day return period is a necessary evil. But the 90-day replacement for defective goods limitation is unconscionable, especially as Costco has promoted their "members getting free TV upgrades" as the rationale for the change.
Unfortunately, this seems to be a smoke screen to hide the true goal, which is limiting Costco''''''''''''''''''''''''''''''''s exposure to valid replacement of consumer electronics by honest consumers, while foisting that responsibility over to the manufacturer (most of which are small, grey market vendors with little real support) after the 90-day period is over. This is bad news for consumers, and surprisingly, is not mentioned in any of the news stories.
Vince Freeman - 2007-27-2 21:25:00 EST
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