That old phone, tablet, or laptop sitting in a drawer may be worth more than you think — especially if it can help pay for your next Costco run. Costco partners with trade-in company Phobio for its Costco trade-in program, an online electronics buyback service that turns qualifying devices into a Digital Costco Shop Card, which can be spent in warehouses or online. The pitch is simple: get a quote, ship your device, and turn forgotten tech into spending money. But as with any trade-in service, the fine print matters, and shoppers’ experiences have been mixed.
How Does the Program Work?
The official Costco page lays out the process in four main steps. First, you select your device model and answer questions about its condition to get an instant quote. Next, you either print a shipping label or request a box with prepaid shipping supplies and packing instructions. Then you erase the device, pack it up, and send it in. Once the item arrives at Phobio’s inspection facility, the item is inspected and data-wiped; if everything checks out, you receive a Digital Costco Shop Card with the trade-in value in about three to five business days. Costco also says the Shop Card can be used in-warehouse or online.
Phobio’s support materials add a few useful details. The company provides setup help for disabling activation locks, reinstalling operating systems on laptops, reprinting shipping labels, and packing different device types. That matters because failing to remove account locks or prep a device correctly can slow down a trade or affect eligibility.
One thing shoppers should know upfront: The quote is not necessarily final. Phobio says devices are thoroughly inspected after arrival, and if the condition does not match the original description, the value can change. On its trade-in pages, the company also says that if a device is requoted and you do not like the new value, it will ship the item back for free.
What Can You Trade In?
Costco’s main landing page still highlights Apple devices, but the broader Phobio trade-in portal and recent reporting show the program now covers much more than just Apple gear. Eligible categories include smartphones, tablets, laptops, desktops, and wearables, with Phobio also saying it supports thousands of device models. A June 2025 Clark review of Costco’s program listed accepted device groups as phones, laptops, tablets, smartwatches, and some desktop computers and media players, with brands including Apple, Samsung, Google, Lenovo, HP, Dell, Microsoft, Motorola, LG, Huawei, and OnePlus. Exact eligibility depends on the specific model and condition, so the only way to know for sure is to run your device through the quote tool.
In other words, this is not a catch-all recycling bin for every old gadget in your house. It’s a resale-focused trade-in program, which means newer devices in working condition are the best candidates for meaningful value. That’s also why Costco and Phobio emphasize condition questions and inspection before payout.
What Are People Saying About the Program?
The short version: many users appreciate the convenience, though experiences aren’t universally positive.
On Reddit, some users described smooth transactions. In one older r/Costco thread, a commenter wrote, “I got the quoted price,” while another said the service was “legit” and that the “whole process from shipment of my device to receiving the cash card took maybe about 15 days.”
But other Reddit posts are much more skeptical. In another r/Costco thread, one user said, “I’m not going to mail in my perfectly working laptop to Phobio. It’s not worth the risk.” In a separate r/apple discussion, the original poster said that “3 out of 3 times” the trade-in value was reduced after Phobio received the device, while another commenter wrote, “Similarly bad experience. They devalued my MacBook Air down to almost nothing due to nonexistent LCD damage… .”
More recent Reddit threads echo those same concerns — and in some cases, raise the stakes. In a newer r/Costco discussion, one user claimed their MacBook was returned in worse condition and no longer working after being sent in, while also saying Costco declined to step in because the program is handled by a third party. Others in the same thread described reduced trade-in values after inspection or missing accessories when devices were returned, though a few said they’d completed multiple trade-ins without issue.
Elsewhere, review sites show the same split. On Trustpilot, Phobio currently has a 4.1 out of 5 rating based on about 10,000 reviews, and recent verified comments include praise such as “The process was fast and simple. Received Costco shop cards as indicated by Phobio,” and “Smooth Process! The entire process was seamless and transparent.”
What to Know Before You Trade In
Before sending in your device, it’s worth paying attention to a few key details in Costco and Phobio’s official terms.
First, your initial quote is only an estimate. Once your device arrives, it is inspected, and if its condition doesn’t match what you reported, the value can be adjusted. If that happens and you decline the new offer, the company says it will return your device at no cost.
Second, preparation matters more than you might expect. Devices need to be properly reset, with activation locks and accounts removed before shipping. If not, it can delay the process or even affect whether the trade-in is accepted at all.
Finally, timing isn’t instant. While Costco says payment is typically issued within a few business days after inspection, the full process — including shipping and evaluation — can take longer depending on transit times and processing volume.
Is It Worth Using?
If your main goal is convenience, Costco’s trade-in program has a lot going for it. The process is straightforward, shipping is prepaid, Costco says data is securely erased, and the payout comes as store credit you can immediately use on groceries, electronics, or pretty much anything else Costco sells.
If your main goal is squeezing out the highest possible value, though, this may not be your best option. Clark’s review concluded that Costco/Phobio did not offer the highest trade-in values compared with some buyback sites, and several Reddit users said Apple or private resale brought in more money.
The smartest move is to treat Costco as a convenience play, not an automatic best-price winner. Get the quote, compare it with Apple, Best Buy, or a resale marketplace, and take clear photos of your device before shipping it out. That way, if the value changes after inspection, you have documentation. That is not paranoia — it’s just good trade-in hygiene, especially for pricier laptops and phones. The official and user-reviewed record suggests the program can work well, but it works best for people who go in with realistic expectations.
