That old phone sitting in your junk drawer could turn into grocery money. Seriously. Most people have no idea that Costco runs a trade-in program that gives you gift cards for electronics you no longer use. We’re talking phones, laptops, tablets, and more. Instead of letting those devices collect dust or tossing them in the trash, you could be loading up your cart with steaks and snacks. Here’s everything you need to know about turning your tech clutter into cold, hard Costco cash.
This little-known Costco program has been around since 2019
Costco partnered with a company called Phobio to create an electronics trade-in program back in 2019. The surprising part? Most Costco members have never heard of it. Unlike their famous rotisserie chicken deals or bulk toilet paper sales, this program doesn’t get much attention. Phobio specializes in handling trade-ins for major retailers. They take your old devices, assess their value, and process everything so Costco can reward you with a shop card.
The whole thing works from home, which makes it incredibly convenient. You won’t need to haul boxes of old phones to the warehouse or wait in any return lines. The program accepts devices from popular brands like Apple, Samsung, and Google. If you’ve upgraded your phone recently or have an old laptop sitting around, this could be your chance to finally do something useful with it. The money goes directly toward things you’d buy anyway.
Six types of devices qualify for the trade-in
The program accepts six different categories of electronics. Phones, laptops, tablets, smartwatches, desktops, and media players all qualify. The media player category currently only includes Apple TVs, so don’t expect to trade in your old DVD player. Each category has its own payout range based on the device’s condition, age, and specifications. Laptops offer the highest potential payout, while media players sit at the bottom of the scale with minimal returns.
According to Phobio’s guidelines, you can receive up to $2,550 for a laptop, $1,125 for a desktop, $931 for a smartwatch, $920 for a phone, $500 for a tablet, and just $5 for a media player. These maximum amounts apply to newer devices in excellent condition. Older or damaged items will get you less, but something is better than nothing. That iPhone 11 you forgot about could net you between $29 and $64 depending on storage and carrier.
Getting a quote takes less than five minutes
The first step involves visiting Costco’s trade-in page and clicking the “Get Started Now” button. This takes you to Phobio’s website where you’ll answer questions about your device. You’ll need to provide the brand, model, original purchase date, and current condition. Be honest about any cracks, scratches, or functional issues. The system generates an instant quote based on your answers. If you like what you see, you can proceed with the trade-in right away.
The quote process is straightforward and doesn’t require any commitment. You can check multiple devices to see which ones offer the best return. Maybe your old tablet is worth more than you expected. Perhaps that smartwatch you stopped wearing could cover a week’s worth of groceries. The instant quote feature lets you make informed decisions before sending anything off. There’s no pressure to complete the trade-in if the offer doesn’t meet your expectations.
Shipping is completely free with prepaid labels
Once you accept a quote, you have two options for shipping. You can print a prepaid shipping label at home immediately or wait three to five business days for Phobio to send you a box with prepaid shipping supplies. Either way, you won’t pay a dime for shipping costs. The prepaid label option works great if you have your own packaging materials. The shipped box option is perfect if you want everything handled for you.
Before packing up your device, you’ll need to follow specific instructions for erasing your personal data. This step is crucial for protecting your privacy. The instructions vary depending on the device type, but Phobio provides clear guidance. Once you’ve wiped the device, pack it securely and drop it off with a shipping courier. UPS and FedEx locations are typically the most convenient options. The whole shipping process couldn’t be simpler.
Expect your payment within two to three weeks
The timeline from shipping to payment involves a few steps. First, your device takes three to five business days to reach Phobio’s inspection facility. Once it arrives, technicians examine the device to verify its condition matches your description. They also perform a final data wipe to ensure all personal information is completely removed. This inspection phase takes another three to five business days to complete.
After everything checks out, you’ll receive your payout in the form of a Digital Costco Shop Card. The entire process takes somewhere between nine and fifteen business days from the moment you ship your device. Since it’s a digital gift card, you won’t need to wait for mail delivery. The card works both in-store at any Costco warehouse and online at Costco.com. You can start spending it immediately once it arrives in your email.
Not every old device will qualify for a payout
The program has limitations on which devices it accepts. For iPhones, the oldest eligible model is the iPhone 11. That means your iPhone 8 or iPhone X won’t make the cut, no matter how good the condition. Similar restrictions apply to other device categories. Very old laptops, first-generation smartwatches, and ancient tablets probably won’t qualify. The program focuses on devices that still have resale or refurbishment value in today’s market.
Devices with significant damage may also be rejected or receive reduced payouts. If your laptop screen is shattered or your phone won’t turn on, expect a lower offer. Some devices might not be accepted at all. It’s worth checking the quote system before getting your hopes up about any particular item. The good news is that checking eligibility costs nothing and only takes a few minutes of your time.
Your old electronics are literally worth billions
Here’s a wild fact to consider. A 2024 report from the United Nations found that people around the world generated 62 million tons of electronic waste in 2022 alone. Less than 25 percent of that waste was properly recycled. Those old devices contain valuable materials like gold, silver, and components used in lithium-ion batteries. When electronics end up in landfills, all that value gets wasted. Experts estimate that improperly discarded electronics represent around $62 billion in lost value.
Trading in your devices through programs like Costco’s allows those materials to be recovered and reused. Companies can refurbish working devices for resale or extract valuable components from ones that no longer function. Your participation contributes to a system that makes better use of limited resources. Plus, you get paid for something you weren’t using anyway. It’s one of those rare situations where doing the smart thing for yourself also benefits everyone else.
You must be a Costco member to participate
The trade-in program is exclusively for Costco members. You’ll need an active membership to receive your Digital Costco Shop Card. If your membership has lapsed, you won’t be able to access the payout. The Shop Card itself can only be used at Costco locations and on their website, so non-members wouldn’t have much use for it anyway. This limitation makes sense given that the program is designed as a member benefit.
The basic Costco membership costs $65 per year, while the Executive membership runs $130 annually. If you’re already a member, the trade-in program adds extra value to your existing membership. If you’re considering joining just for this program, do the math first. A single laptop trade-in could potentially cover several years of membership fees with money left over for actual purchases. Just make sure the numbers work in your favor.
Other retailers offer similar programs worth checking
What if you’re not a Costco member? Other options exist for trading in old electronics. Target runs its own trade-in program that accepts various devices. GameStop takes gaming consoles, controllers, and related electronics. Both programs work similarly to Costco’s offering, though payout amounts vary. Shopping around between different programs might help you find the best deal for your specific devices.
You can also work directly with device manufacturers. Apple and Samsung both offer trade-in programs that give you credit toward new purchases. The Apple Trade In program applies credit toward new Apple products or gives you an Apple Gift Card. Samsung’s program works the same way for Galaxy devices. These manufacturer programs sometimes offer better value if you’re planning to buy a replacement device anyway. Comparing all your options ensures you get the maximum return for your old electronics.
That drawer full of old phones and tablets doesn’t have to stay useless forever. Costco’s trade-in program through Phobio offers a legitimate way to turn forgotten electronics into grocery money or any other Costco purchase. The process is simple, shipping is free, and payouts can reach into the thousands for premium devices. Before your next Costco run, take a few minutes to check what your old tech might be worth. Your future shopping cart will thank you.
