Should You Buy Your Next Phone From Costco? A Look At The Pros & Cons Involved

While retailers such as GameStop or Discount Tire like to specialize, others opt to offer as many distinct categories of products under one roof as possible. Case in point, the mammoth grocery warehouse, Costco. You can buy food, automotive parts, a computer, and yes, Costco sells a 100-inch TV, among other products.

One of the highly sought-after items from this retail giant has been smartphones. This was due in part to Costco's deal with a third-party company, Wireless Advocates LLC, which once operated the phone sale kiosks in the store. This offered Costco members some compelling deals on expensive smartphones that were often cheaper than purchasing directly from the carrier. 

However, Wireless Advocates shuttered its operation in late 2022, and since then, the experience of buying a smartphone from this grocery warehouse has changed. So, is it still worth shopping for phones at Costco, or are you better off going elsewhere?

If you're already an Executive member, which is Costco's higher tier level, you get a special cash back reward of 2%. This reward covers a variety of products and can help put some money back in your pocket. For instance, say you spend $1,000 over the course of a year buying electronics (1–2-person household), according to Costco's own calculator, you'd get back an estimated $20. It might not sound like much, but these rewards can add up, helping to offset things like the membership fee itself.

One of the more obvious advantages of buying a phone from Costco has to be convenience. Visiting a T-Mobile or AT&T store requires a special trip dedicated to phone shopping, whereas with Costco, you can pick up dinner, buy a new phone, and fuel up your car on the way out. Costco also offers stellar warranties and return policies, which is why it's one of the best places to buy an iPhone.

Finally, you can also still find good deals and promotions that may rival or exceed what the carriers can offer directly. For example, one customer explained that they purchased a plan that included four lines for $162 a month and received a $400 Costco card. Even better, by trading in two iPhone 12s, one iPhone 13, and one iPhone 14, there was no upfront cost.

While there are some definite perks to buying a phone from Costco, there are also a few drawbacks. Following the closure of Wireless Advocates LLC (the company that used to operate Costco phone kiosks), there was a bit of a shakeup, and Costco ended up striking an exclusive deal with T-Mobile in around 30% of their stores. However, that may not be good news if you're with another carrier like AT&T.

One frustrated customer described their experience with a Costco AT&T kiosk recently and noted many problems they endured. Namely, the return process was far too complex, and this customer discovered that AT&T stores won't take back phones purchased from Costco. One of the frequently touted advantages of shopping at this grocery warehouse is Costco's electronics return policy, which applies to many items. However, cellphones may have carrier restrictions in the fine print of your contract. 

The other downside to shopping for phones at Costco is that you may have a more limited selection, fewer styles, and fewer personalization options. For example, one user posted (via Reddit), "I'm a big Costco [fan] but not for phones. I use T-Mobile, but get my phone from the Apple store. I get the exact deal that T-Mobile offers, have a much wider selection of colors and models, and the phone is setup perfectly."