Analysis
Costco is a membership-only warehouse; only individuals who have paid to join are allowed entrance unless accompanied by a member. Their mission statement is “To continually provide our members with quality goods and services at the lowest possible prices." Additionally, their vision statement is to make their business “a place where efficient buying and operating practices give members access to unmatched savings.”
Costco's information system has made great improvements. This includes the digital membership cards on the app as well as an option for digital payment linked to membership cards. All in effort to simplify the members shopping experience. The app includes a digital coupon books and same day in store pickups on qualifying items. It also allows the executive reward program to be tracked based on annual purchases allowing members to earn up to $1000 cash reward.
It's well known that Costco provides a lenient return policy. The company offers members the chance to return merchandise subject to a few limitations and guarantees the superior quality of its products. The membership-based system has multiple benefits, including the ability to retrieve past purchases for a smooth return process that prevents the need for a purchase receipt.
In the image above is the system in which Costcos employees use to navigate the purchase history of their members. With the member own unique identification number and item number of the product being returned, the employee is then able to locate the time, date, and payment method used for that particular item.
An existing problem that Costco's Corporation is currently and consistently improving due to defaults are the app and Costco.com website.