Condition of Merchandise


New merchandise in original packaging.

Like New

Merchandise can be unsold merchandise or shelf pulls and have never been used by a member. Items may have minor wear and tear from handling and sorting. Boxes may have sorting labels applied to them for processing. Items are more likely to have original packaging and tags, though in some cases may also have return labels.


Like new condition, directly from the manufacturer. Items have been handled in shipping, but remain unopened and unused.

Grade A/B

Grade A/B can be member returns or unsold merchandise.

Member Returns

It’s not uncommon for members to return the 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.

Unsold Merchandise

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

Grade C/D: 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 and be non-working.

Mixed Condition:

Mixed Condition lots can range from New to non-working with no set percentage of each. Items may be heavily scratched and/or dented, and have missing or broken parts. All Sales are final.