15 Big Perks of Shopping at Costco

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Costco is one of the most popular warehouse clubs in the country. Find out why by learning about the big perks of shopping at Costco. 

Costco is many people’s favorite store, but you need to pay for a membership to shop there. That costs $60 per year for a gold star membership or $120 per year for an executive membership, which also includes a 2% annual reward up to a $1,000 limit.

People often wonder if it’s really worth it to pay an annual fee to shop somewhere. In this case, it definitely can be. With all the big perks of shopping at Costco, a membership can quickly become a bargain.

1. Competitive prices on everything you buy

Costco has a well-deserved reputation for affordable prices, and that applies to its entire inventory, so it’s easy on your personal finances. Whether you go to Costco for groceries, electronics, furniture, clothes, or anything else it offers, you can expect good deals.

Costco is able to offer these low prices because of the membership fee and because it’s selective about the products it carries. Costco warehouses carry about 4,000 products, compared to about 30,000 for most supermarkets, according to the Costco website. By being selective and only carrying products it can sell at a competitive price, Costco is able to provide value for its members.

2. Being able to stock up by buying in bulk

Buying in bulk normally saves you money, as long as you use everything you buy. Costco is known for its bulk items, including food and household essentials. It’s a great place to shop if you have a large family to feed, and even if you’re only shopping for yourself, you’ll probably still find some affordable bulk items you can use.

3. High-quality store brand products

Store brand products can be hit or miss, but Costco’s Kirkland Signature is a hit with shoppers. Kirkland Signature products tend to be about 20% cheaper than products from comparable brands. Those savings don’t come at the expense of quality, either. They usually get high marks, and research into who really makes Kirkland products has found that many of the products are made by name brands. For example, Starbucks makes several Kirkland Signature coffees.

4. Filling up at Costco gas stations

Costco warehouse clubs often have the lowest gas prices in the area. A GasBuddy analyst found that Costco’s gas was usually $0.05 to $0.25 cheaper than standard gas stations. It’s not selling low-quality gas, either, as its gas meets top quality standards. The retailer is simply willing to sell gas at a loss to bring more shoppers into its stores.

5. An incredible return policy

On most products, Costco has a risk-free 100% satisfaction guarantee. There are some items you can’t return to Costco, such as alcohol and cigarettes. There are also product categories, such as electronics and major appliances, where Costco accepts returns within 90 days (which is still longer than what most retailers offer).

The vast majority of Costco’s products can be returned practically anytime, often even if you don’t have the receipt. For an example of just how generous Costco’s return policy can be, one shopper returned an ancient Keurig that was several years old, when she was no longer a Costco member. She was still able to return it and get a gift card for the full amount she had paid.

6. Car deals through the Costco Auto Program

Car buying can be stressful, and it has only gotten harder as inventory shortages have pushed up prices. The Costco Auto Program makes it easier. Members have access to prearranged pricing on new and pre-owned vehicles with Costco’s partners, which includes more than 3,000 dealerships. Some shoppers have reported being able to buy a car through Costco for under the current market value, so there are often deals available that would be tough to find elsewhere.

7. Free sample stations

If you like to snack while you shop, Costco’s free sample stations are one of the nice things about shopping there. They’re also a great way to discover new products you wouldn’t have known about otherwise.

8. The Costco food court

While the free sample stations are good for a quick bite, the Costco food court has lots of options if you want a full meal. The $1.50 hot dog and soda combo is a fan favorite and has had the same low price since 1985. If you’re feeling adventurous, or you want something to post about on social media, you can try the Forbidden Glizzy. This strange yet popular combination involves stuffing a hot dog into a chicken bake. Reviews vary. Personally, I’d stick to pizza.

9. Free extended warranty coverage

At most retailers, if you want extended warranty coverage on a purchase, you need to buy it or pay with a credit card that offers it as a perk. Not so at Costco. With eligible items, such as major appliances and electronics, Costco automatically extends the manufacturer’s warranty by up to two years from the purchase date.

10. Special seasonal and holiday products

Costco has its mainstays, as well as a rotation of seasonal products. For example, during the holiday season, you can expect to see more decorations, gift baskets, toys, and yummy sweets. For many members, one of the highlights of shopping at Costco are the special limited-time products.

11. A unique shopping experience

There’s no denying that shopping at a Costco warehouse is a much different experience from shopping at most stores. Everything is bigger, and because you need to navigate through the whole store to get to the food, it feels like you’re going on a journey. I still have memories of going to Costco as a kid and thinking that it was so much more exciting than going to a regular supermarket.

12. Vacation deals through Costco travel

If you’re never quite sure where to book travel, Costco could be the answer. Through Costco Travel, it offers members deals on vacation packages, hotels, cruises, and rental cars. This isn’t just budget travel, either. Many Costco Travel packages offer deals at all-inclusive resorts.

13. Low prescription drug prices

The Costco Pharmacy is an affordable place to buy prescription drugs. In fact, its prices beat several major drug stores, like CVS. To make it even better, you don’t need a membership, as the Costco pharmacy is open to anyone. While greeters usually ask to see proof of membership when you enter Costco, you can just let them know that you’re there to get a prescription.

14. All the latest electronics (and free tech support!)

Costco has a fantastic selection of electronics, including TVs, cellphones, computers, and video game consoles, in stores and on its website. As usual, prices are competitive with other major retailers. One area where Costco sets itself apart is by offering free tech support through its Costco Concierge service. If you need any help with electronics you bought at Costco, you can get assistance by phone or online chat.

15. Supporting a company that treats its employees well

Finally, it’s worth mentioning that Costco is known for providing a good working environment. It has consistently offered starting wages higher than those of other major retailers, and it raised its minimum wage to $17 per hour in 2021. In addition to a competitive starting salary, Costco has a graduated wage program with raises based on hours worked, plus excellent benefits.

While there are plenty of places to shop, Costco’s commitment to offering value for its members makes it stand out. If you can take advantage of the many benefits of shopping at Costco, it’s well worth the price of a membership.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Starbucks. The Motley Fool recommends the following options: short April 2023 $100 calls on Starbucks. The Motley Fool has a disclosure policy.

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