You Can Get “Free” Groceries at Costco if You Trade in Electronics — Here’s How

Going to the grocery store can be a wonderful time, but it can also be overwhelming and financially draining. This is also how I feel about technology; I sometimes love it, and sometimes I feel like it came into this world specifically to cause frustration. However, sometimes your grocery shopping experience and your electronic devices can work together in harmony. How are those two things related, you ask? Thanks to a program at Costco, you can easily turn your unwanted electronic devices into money for groceries. 

Put simply, Costco has partnered with an electronics trade-in company called Phobio, which allows you to exchange your old electronic devices for Costco gift cards. If you’ve ever sent in one of your old smartphones in order to upgrade to a new one, the process is fairly similar. It’s not just phones that qualify, either; an Instagram post by @costco.so.obsessed notes that you can also trade in smart watches, tablets, media players (currently this only includes Apple TVs), laptops, and even desktop computers.

Participating in a device trade-in isn’t just good for your wallet; it also allows these old devices to be refurbished or recycled properly, as many have potentially toxic components like mercury in them. A 2024 United Nations Institute for Training and Research report found that less than 25% of the 62 million tons of e-waste (anything with a “plug or battery”) generated in 2022 was properly recycled.

Instead of heading into a nearby Costco, you trade in your old electronics at home. First, you have to see if your device is eligible for the trade-in program and find out how much it’s worth. Per Phobio, you can get 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. You can’t trade in literally any old device; for example, the oldest eligible iPhone is the iPhone 11, which will net you between $29 and $64 depending on storage capacity and carrier.

Once you’ve confirmed eligibility, you can either wait three to five business days for a box that comes with prepaid shipping labels or print one out at home. Then you have to follow specific instructions for erasing the information on your device. All that’s left to do now is pack up your tech, send it off, and wait for your gift card. Note that it does take three to five business days for your device to reach the Phobio facility, and because the device has to be inspected and “data-wiped,” it’ll be another three to five business days before your Costco Shop Card arrives. It’s a digital gift card, so you won’t need to rely on the mail to receive it, and you can use it both in-store and online.

Don’t want to spend your money on groceries? Here are six practical non-grocery items to buy with a Costco Shop Card instead.