Costco offers great deals to its members. But if you don't live near one of Costco's 875 warehouse store locations, then you may be hesitant to pay the membership fee to join the warehouse club. After all, you can't take advantage of deals you're unable to access.
Costco has a website that you can order many products from. So, even if you don't have a Costco in or around your neighborhood, it's still possible for you to buy from the warehouse club thanks to the magic of the internet.
If you'll only be shopping at Costco.com, though, you need to think carefully about whether a membership is worth it. Here's how you can decide whether that membership fee belongs on your credit card.
Will you spend enough online to justify a membership?
The first thing to know is that you do not have to be a Costco member to shop online. Anyone can go to Costco.com to purchase the items for sale there. However, if you aren't a member, you will pay a 5% surcharge for your online purchases. In addition, Costco does have a selection of members-only items online that non members aren't allowed to purchase.
So for it to make sense for you to buy a membership in order to shop online without this surcharge, you would have to save enough by avoiding the 5% to cover the cost of your Costco membership.
The entry-level cost of joining Costco is $60.00 per year. If paying the 5% surcharge on your purchases is less than $60, it would not make sense for you to join Costco just to avoid it. You'd be better off doing your online shopping as a non-member and paying the slightly higher prices.
So, if you are spending $1,200 or less at Costco.com, the 5% surcharge would add up to $60 or less -- and paying for the membership probably wouldn't make sense if you couldn't visit the store. But if you bought more than $1,2000 a year worth of stuff at Costco.com, paying for the $60 membership fee would be worth it to avoid the 5% surcharge.
Say, for example, you make $2,500 worth of purchases per year at Costco.com. If you weren't a member, the 5% charge on your $2,500 would cost you $125 a year -- more than double the $60 membership fee you'd have to pay to avoid it. Becoming a member in this situation is an easy personal finance decision.
What other alternatives do you have?
You should also consider whether there might be better options out there for your warehouse club needs.
Costco generally charges more for online purchases (both for members and non-members alike) compared to what you'd pay in the club. So, if you are using its website to do most of your shopping, you aren't really getting the best deals or the rock-bottom prices you may have expected.
Sam's Club, on the other hand, does not charge a premium for purchases made online versus in the warehouse club. So if you want to do most of your warehouse shopping over the internet, Sam's may be a better fit.
Before you buy a Costco membership to shop at Costco.com, you'll absolutely need to consider these two issues. You may just find that becoming a member of this warehouse club makes absolutely no sense for you and your personal shopping budget.
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FAQs
You'd be better off doing your online shopping as a non-member and paying the slightly higher prices. So, if you are spending $1,200 or less at Costco.com, the 5% surcharge would add up to $60 or less -- and paying for the membership probably wouldn't make sense if you couldn't visit the store.
Is Costco worth it for online only? ›
Costco generally charges more for online purchases (both for members and non-members alike) compared to what you'd pay in the club. So, if you are using its website to do most of your shopping, you aren't really getting the best deals or the rock-bottom prices you may have expected.
Is $60 Costco membership worth it? ›
However, with the cheapest Costco membership costing $60 a year, it may not be worth it if you don't plan to shop at Costco often or use its services, and if buying in bulk isn't practical for your living situation.
How much is a senior membership at Costco? ›
There's much to be gained by getting a Costco membership when you're older. Unfortunately, though, Costco doesn't offer senior discounts. You'll need to prepare to pay $60 for a basic membership or $120 for an Executive membership. You may find, however, that the savings you enjoy can more than make up for those costs.
Which Costco membership is best? ›
The Gold Star membership is your better option if you don't spend a lot of money at the warehouse club. It also makes sense to opt for the Gold Star membership if you won't use any of the other perks that come with the Executive membership.
Is Costco more expensive if you order online? ›
If you want to pay rock-bottom prices for your items, you need to visit the warehouse club and buy them there. Since there are extra shipping and handling costs incurred by the warehouse club when you shop on the internet instead of in-store, items purchased online are marked up to help offset this added expense.
How much do you need to spend to make a Costco membership worth it? ›
If you typically spend more than $3,000 a year on Costco purchases, or if you anticipate spending more than $3,000, then you should keep or upgrade to an Executive membership. Why is $3,000 the magic number? It's simple. The cost to upgrade from a basic Costco membership to an Executive membership is $60.
How do I get a $30 Costco membership online? ›
To receive a Digital Costco Shop Card, you must provide a valid email address and set up auto-renewal of your Costco membership. Limit one membership per household. Qualified members will receive their $30 Digital Costco Shop Card by email within 2 weeks of redeeming their purchase.
How do I avoid Costco membership fees? ›
Here are three:
- Shop online without a Costco membership. ...
- Use a Costco gift card without a membership. ...
- Visit the Costco warehouse as the guest of a member.
Yes, there are many items at Costco that you can save money on, even if you do not buy in bulk. There are more than 140,000 different items one could buy at any given Costco store. Generally speaking, you'll find lower prices at Costco that you can elsewhere.
Costco does not offer "senior discounts." But the same low prices that Costco offers to all shoppers can be an especially good value for retirees on a budget. Enjoying life in retirement depends on how you want to spend your time and money.
What is better, Costco or Sam's Club? ›
Costco has more stores across the globe, is expanding rapidly, and generally offers cheaper prices than Sam's Club does, although the latter charges slightly less for membership, has a bigger presence in the U.S., and stocks more name brands.
How to get a $20 Costco membership? ›
Here's how to snag the deal: Purchase your Costco membership through StackSocial, and make sure you provide a valid email address. Within two weeks, you'll receive your $20 Digital Costco Shop Card via email. Once you receive the digital shop card, you can use it to make Costco purchases online or in person.
What is the top seller at Costco? ›
Toilet paper
Yes, that's right! Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue.
How to get a Costco membership for free? ›
While Costco doesn't offer free or discounted memberships, we do provide an exclusive college student offer to join Costco as a new member and receive a Costco Shop Card!
Can you use someone else's Costco card? ›
Can other people use my membership card? The Costco membership card is non-transferable, but there are several ways to share the experience with family and friends. Anyone with a card can bring up to two guests to the Warehouse during each visit. Keep in mind that purchasing items is exclusive to Costco members.
Do you get Costco rewards for online shopping? ›
The Executive 2% Reward can be earned on most purchases made in Costco warehouses and online on Costco. Click here for the list of exclusions.
Does Costco honor their online prices in store? ›
Costco does not price match Costco warehouse prices for Costco.com purchases. Costco.com prices take into account shipping and handling fees not applicable to warehouse purchases. Please view this information to learn more about the difference between online and warehouse prices.
Does Costco have online only items? ›
There are items you'll find online that you won't find in the warehouse, and vice versa. Some items can be purchased online and shipped to your local warehouse for pickup. If a product is eligible, it will be noted on the product page beneath the “Add to Cart” button.
What percentage of Costco's sales are online? ›
First party e-commerce net sales generated by online stores of Costco Wholesale Corporation represented approximately 6% of the total net sales of Costco Wholesale Corporation in 2020.
