3 Lies You've Been Told About Costco

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Costco is a truly unique store. Not only does it offer an impressive range of products and services at affordable prices, but it also carries its own Kirkland product line featuring interesting buys you won't find elsewhere.

But whether you're a current Costco member or are thinking about joining, it's important to familiarize yourself with the store's ins and outs. Here are a few lies you may have been told about Costco that you shouldn't believe.

1. You can return any item at any time

It's true that for the most part, Costco allows customers to return any item at any time. But there are limits to that generous return policy.

First, electronics and major appliances only have a 90-day return window. If you go beyond that point with a stove or a laptop, you shouldn't expect to get your money back.

Second, certain items can't be returned to Costco after you buy them. These include cigarettes, alcohol, gift cards, event tickets, and gold bars.

Similarly, you may have heard that you can return items to Costco years later when they're in worn, rotten condition. While you might technically get away with returning a winter coat that's two years old and splitting apart at the seams, doing so could put you at risk of having your membership revoked, since that's a pretty clear abuse of the retailer's return policy. And if your return is truly unreasonable, Costco might just say no.

2. You can order anything you want online without a membership

You don't need a Costco membership to place orders on Costco.com. However, non-members are charged 5% more on their purchases since they aren't paying Costco's annual fee. So you'll need to run the numbers to make sure those surcharges make sense.

If you normally spend $1,500 a year at Costco.com, 5% of that is $75. In that case, it's cheaper to buy an annual basic membership for $65 and save some money .

What's more, some Costco.com items are designated as member-only. This means you won't be able to purchase them without having a membership ID number to enter at checkout.

3. The Executive membership upgrade isn't worth it

While a Gold Star membership at Costco costs only $65 a year, an Executive membership costs double. But that higher-priced membership comes with a huge perk -- 2% cash back on your Costco purchases. So before you assume that the Executive membership doesn't make financial sense, crunch the numbers.

If you spend more than $3,250 per year at Costco, including online orders, then the upgrade is your best bet. That's because 2% of $3,250 is $65, which is the cost of the upgrade. If you spend even a dollar more, you're looking to benefit financially from the higher-cost membership.

There's a lot of misinformation out there about Costco, so it helps to know the truth about the store's return policy and online offerings for non-members. It's also important to do the math behind the Executive membership before writing it off as an option that makes sense for you.

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