Is Costco Phobio Legit? Here's How The Trade-In Program Works

Costco is known for its warehouse layout, bulk items, and members-only services like saving money at the gas pump. Another service is through a partnership with Phobio, a third-party electronics trade-in company. Though not a traditional program involving a physical drop-off box or machine in stores, it's still the real deal. Members who utilize the program can trade in their used electronics for a Costco Shop Card.

The process is online and begins when you click the "Start Your Trade-in Now" link on Costco's website. From there, you choose the type of device you're wanting to trade in, from phones and laptops to smartwatches (whether cheap or expensive) and more. Then you choose the manufacturer and answer some technical questions about the device's specific model. Your exact device should then be listed on the screen, along with an estimated quote. Once you select it, you'll be asked some questions about its condition. The quote amount may fluctuate based on your answers.

Once you're done, you enter your name and shipping information. Then you can print a prepaid shipping label or choose to receive a box from Phobio. Follow Phobio's instructions on how to pack your device, and be sure to erase all the data before you box it up. Ship the item to Phobio, and the company will inspect it. Once the process is completed, Phobio will send you a digital Costco Shop Card for the trade-in value. This card can be used either in-store or online.

The devices Phobio takes in from Costco members, including phones, are refurbished. They're then sold through the secondary market. But Phobio ensures that all user data is completely deleted beforehand. The company's inspection and evaluation process is done in-house, and the company promises to keep constant communication through every stage of the process, from start to finish. However, there are some things you need to know before using Phobio's trade-in service.

The company has faced some backlash in recent years, most notably in 2021, when some customers claimed the inspection value was much lower than the online quote. In some cases, quotes were lowered due to defects that did not exist before the items were shipped. Though Phobio presented proof of damage through pics, customers still weren't satisfied, believing that it just wasn't enough evidence to warrant paying out a lower dollar amount.

Costco members have expressed their own frustrations with Phobio in Reddit threads in the years since. Receiving less than the quoted value was just the beginning, as one person, after refusing the new quote, did not receive the charging cable when their device was returned to them. Another customer complained that Costco gave them no help with their own Phobio issue, as it was not their problem to correct. So before using Phobio, reach out to them for more details, and contact Costco customer support as well for more information.