Condition of Merchandise
New merchandise in original packaging.
Grade A/B can be member returns or unsold merchandise.
It’s not uncommon for members to return unused merchandise to Costco. Even if the member hasn’t used the item, if any portion of the packaging has been opened, it can not go back on the sales floor. This unused merchandise will be part of Grade A/B liquidation.
It is also not uncommon for members to return merchandise to Costco after it has been tried. Reasons for return include shipped in duplicate, buyer remorse, wrong size, color, damage during shipping, wrong item, didn’t need, didn’t work, missing part, or no reason given. After receiving from a warehouse, the Costco Returns Depot conducts a visual screening, but does not test items before determining Grade. Expect that some percentage of items may be damaged, torn, missing parts, missing manuals, or otherwise incomplete/non-functional.
Although not a general requirement for refund, most members do return items in the original box.
Member Returns can include online purchases.
When inventory of an item or category of items becomes too small to mass out in typical Costco displays, warehouses may liquidate this unsold merchandise. Usually this merchandise will be categorized as Grade A/B.
Grade C/D lots are member returns or warehouse displays that fall below the A/B Grade standard. Items may be heavily scratched and / or dented, have missing or broken parts.
Merchandise may or may not be functional. Missing or broken parts are highly likely. Merchandise quality falls below C/D Grade standards.