Costco vs. Amazon: Why Costco Isn’t Always the Cheaper Option

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Costco usually has the best prices, but not always. Read on to find out which items to buy on Amazon. [[{“value”:”

Costco members know better than anyone else just how much money they can save when shopping at the discount warehouse store. Recent research shows that some members can save up to $1,000 annually in groceries.

But is shopping at Costco always the cheapest option? Probably not. Here are a handful of items you might be able to find at a lower price on Amazon — and one Amazon perk that could save you even more money.

Four items that will cost you more at Costco

Costco and Amazon require you to be a member to access the best deals. Amazon’s Prime membership will set you back $139 for a year-long membership, or $15 for a one-month memberhsip, while Costco’s basic Gold Star membership costs $65 annually. Costco also offers a $130 Executive membership, which gives you additional perks, like 2% cash back on purchases.

I’m an Amazon Prime member and, until recently, had a Costco membership, so I know that both have their strengths. But sometimes assuming that one store will have cheaper prices than another is a good way to go over budget when shopping.

So, I combed through both company’s websites, comparing prices in a variety of categories to find a few deals where Amazon wins out. Here’s what I found:

Computer: A previous-generation (but still new) 13-inch Apple Macbook Air M2 costs $849 on Amazon right now, a $100 discount compared to Costco’s online price.Toothpaste: I found a four-pack of Colgate Optic White Platinum toothpaste on Amazon for less than $14, a $5 savings over Costco’s online price.Batteries: Both Amazon and Costco have their own brand of batteries, but a 48-pack of AA Amazon Basics batteries costs $0.50 less than the same number of Kirkland brand batteries.Paper shredder: An Amazon Basics 12-sheet paper and credit card shredder costs just $59, compared to the cheapest 14-sheet paper shredder I could find on Costco’s website, which was $80. Two pages fewer of shredding power is probably worth the $21 in savings.

While I found these items for a cheaper price on Amazon, it’s worth mentioning that Costco’s in-store prices may vary. Also, Amazon’s prices can fluctuate, so there’s no guarantee the products I found on Amazon will continue to be cheaper than at Costco.

An extra way to save with Amazon

It’s important to note that when I was comparison shopping, I found a lot of items on Amazon that would have been even cheaper if I added them to my Subscribe & Save list.

Subscribe & Save is Amazon’s free service that saves you money for getting certain items delivered regularly. For example, if you know you’ll need batteries, laundry detergent, cereal, tissues, and dish soap every month, you can add them to your Subscribe & Save list, pick the delivery frequency, and receive a discount on your order.

You can save 15% or more when you add five or more items to your Subscribe & Save list, and thousands of items are available for a discount. My wife uses it all the time for everyday household products, which have the added convenience of being delivered right to our doorstep.

I have to admit that it took me a while to find a handful of items cheaper on Amazon than at Costco. Apparently, beating the discount warehouse club’s prices is no easy feat. And if you have a Costco credit card or regularly buy gas at the store, then Amazon may not be your best choice. Unless, of course, you’re really looking for a sweet deal on a paper shredder.

Top credit card to use at Costco (and everywhere else!)

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Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Costco Wholesale. The Motley Fool has a disclosure policy.

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