What Does Costco Do With Unsold Appliances?

Ever found yourself wandering through the appliance section at Costco and wondering what happens to all of those fridges, ovens, and washing machines if nobody buys them? Sure, there are frequent clearance sales with some great deals to be had on big-ticket items, but that doesn't guarantee all of the stock will be cleared. And what about customer returns or damaged goods that can't go back on the shop floor?

Like most major retailers, Costco needs a way of dealing with inventory it can't sell to make space for newer stock. While Costco's financials will certainly allow for some losses due to unsold stock, that doesn't mean the company won't try to recoup some of its losses. To do this, it often moves unsold appliances through liquidation channels. Liquidation is essentially the process of selling off unwanted inventory at a reduced price. For Costco, this typically means auctioning off appliances in bulk through liquidation marketplaces. Rather than relying on individual shoppers to buy up every single discounted dishwasher, these appliances are bought up by businesses – often dedicated resellers who aim to make a profit from their investment.

However, the quality of the stock bought through liquidation sales can vary greatly, especially from a company like Costco that's known for its generous return policy. That liquidated stock might consist of mint-condition appliances that simply failed to sell before a new model was released, or may consist of "pre-loved" units that need complete refurbishing before they're suitable for resale. Ultimately, that's the risk liquidation resellers take in their line of work.

Costco's liquidation auctions are predominantly aimed at corporate buyers, and liquidation marketplaces often require bidders to hold a business license. Fortunately, Costco members can still find some impressive appliance deals if they know when to shop. The company will usually try to offload inventory to regular customers before the liquidation stage.

While they can offer superb discounts, Black Friday and Cyber Monday aren't necessarily the best sales events of the year for appliances. Holiday sales events are worth holding out for — while Costco's stores are closed on Memorial Day, the related sales period is known for offering some deep discounts on electrical goods. Meanwhile, the Labor Day event falls toward the end of Costco's summer clearance. And if you're in the market for a new television, January might be the ideal time to take a look at what Costco has discounted. Not only are retailers trying to offload excess holiday stock, but they also rely on the upcoming Super Bowl to help persuade customers to upgrade their screen. You might also find excellent deals on open-box TVs that people bought solely for the big game and returned straight after the final whistle.

Finding the best deals on Costco appliances is all about timing. It requires enough patience to wait until an item has hit its lowest price, but if you wait too long, someone else might grab that new dryer you had your eye on. Or it may end up unsold and bundled on a pallet for liquidation, where another buyer might purchase it from a reseller.