Costco is making two big changes that affect many of its customers in the U.S. The company wants to modernize some old processes and, at the same time, better control certain returns. These changes are part of an attempt to digitalize and aim to make purchases simpler and more efficient.
For years, Costco has been known for its low prices, big warehouses, and its generous return policy. However, now the company is adjusting some traditional practices. So, let’s explain these changes a bit more.
Costco ends traditional paper system for custom orders
One of the most important changes has to do with custom cakes. For decades, customers who wanted to order a custom cake for parties, they had to go to a physical store and fill a paper form. Then, they must go another day to pick up the order.
Now, according to what Ron Vachris, the CEO of Costco, explained, the company is moving these custom orders into a “digital state.” He shared this update during Costco’s Q1 2026 earnings call.
Under the new system, members will be able to place orders through the Costco app. For custom cakes, customers will be able to choose:
- Cake size.
- Flavor.
- Design.
- Custom message or inscription.
The company clarified that this change is a solution since many customers considered the previous system ‘’clunky.’’
Deli tray orders
The same would happen with deli trays. Costco is also bringing deli tray orders into the app, so you will have to fill out a paper slip inside the warehouse.
By moving deli tray orders online, Costco aims to reduce ‘’clunky” processes. Members will no longer need to rely on handwritten forms or make extra trips just to place an order.
Dates
However, there are still some doubts about it and Costco hasn’t confirmed an exact date for the use of this new system in all its warehouses. There’s also no list published with the stores that have already activated it.
What’smore, nobody knows if the new system will allow shorter notice than the traditional 24-to-48-hour ordering window. For now, members are encouraged to keep their Costco app updated so they can see when the “Order Grocery/Bakery” option becomes available in their area.
Return policy
Apart from custom orders, the company is adjusting its return policy. Costco has always been known for offering very flexible returns, which helped gain loyal customers for years, especially in online purchases.
However, retailers across the United States have faced growing losses from problematic and fraudulent returns. For example, fraudulent returns and false claims cost U.S. retailers about $103 billion in 2024, which represents roughly 15% of all returned merchandise.
Gaurav Saran, CEO of ReverseLogix.com, explained that retailers expanded return policies to compete and build loyalty as online shopping increased. However, he noted that some shoppers began taking advantage of those flexible policies. Also, Kevin Mahoney, retail managing director for Deloitte Consulting LLP, stated in the Appriss Retail and Deloitte report that returns are a significant cost for retailers and may continue to grow with online shopping.
More control in food returns
Some Costco members have pointed out that they are finding it harder to apply for certain returns, particularly for food items with quality issues.
In the past, some customers could receive a refund without bringing the item back to the store. Now, according to member reports, there may be more pushback, and in some cases, customers may need to return the product.
So…
These changes show Costco’s effort to balance modernization with cost control while continuing to serve its members in a changing retail environment. Do you think these changes are positive?