|
There are a few ways to deal with product, and every company is different.
Lots of items are destroy for credit, which is exactly what it sounds like. Many are RTV or return to vendor. We usually get a high% back on those. There are salvage, which are usually sold to stores like sams club? Or if you remember XS Cargo. Then you have companies like Lego that give you nothing.
So all those people who speculatively buy 10 of the $500 Lamborghini lego sets hoping to make money, but don’t, so they return 8 of them? Yepp we eat that $4000
The percentage of people who abuse the return policy is small. And like hondaracer said. There’s also the companies that will eat the entire cost, because that 0.001% of members who return stuff is a drop in the bucket versus getting your products sold in costco
Edit: and don’t forget, we keep records of *everything* and can (and have) cancel your membership at any time for abusing it. You return 3 MacBooks, a gopro, a kayak, a tent, a tv after football season, we can refuse it and tell you to get stuffed.
|