Should You Join Costco if You’re Already an Amazon Prime Member?

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Doubling up on an Amazon Prime and Costco membership might work to your benefit. Read on to see why. [[{“value”:”

For many people, Amazon Prime’s $139 annual fee is more than worth paying. In exchange, you not only get unlimited free two-day shipping, but you also get access to other helpful programs like Try Before You Buy, where you can try on clothing and see if it fits before having your credit card charged. And if you’re someone who loves a quiet evening at home, the free content from Prime is apt to make for some nice entertainment.

If you’re already fitting the cost of a Prime membership into your budget, then you may not be in such a rush to sign up for a Costco membership. Although you’ll only pay $60 for a basic annual Costco membership (an Executive membership costs $120 a year), you may feel that you’re not going to get the best value out of a Costco membership if you already have Prime. But here’s why joining Costco could make a lot of sense.

Amazon Prime has its limits

Amazon offers a world of products, from electronics to apparel to toys. But one area where you may not benefit so much as a Prime member is fresh groceries.

Granted, with Amazon, you get access to Amazon Fresh, which gives you access to a wide range of fresh grocery products and even delivery. But Amazon Fresh isn’t known for its bulk discounts on groceries the way Costco is. And that’s where you might reap a world of savings.

Let’s say you have a larger family and normally spend $600 a month on groceries at a regular supermarket. With Amazon Fresh, you may not save any money. At Costco, you might manage to whittle your monthly grocery bill down to $540 by purchasing so many of the items you use frequently in bulk. That $60 savings could be enough to make you whole on your $60 membership fee — and come out ahead financially the rest of the year.

Costco offers a world of perks

While access to fresh food in bulk is a good reason to join Costco even if you’re a Prime member, another thing you should know is that Costco offers a world of benefits outside of just food and household products. For one thing, Costco’s travel service gives members access to hundreds of competitively priced vacation packages. On Amazon, you might be able to find a great deal on luggage — but you can’t book your upcoming trip through Amazon.

Also, Costco stores commonly have an auto center where you can purchase tires and have them installed at no additional cost. You can also get free rotations and flat tire repairs. That’s not a service Amazon provides.

And don’t forget Costco’s affordable gas. Filling up your tank may be a lot less painful if you do it at Costco.

Of course, your Prime membership might make it so you’re doing less shopping in person and therefore aren’t filling up your car as much. But still, it’s nice to save money for those times when your vehicle does need some fuel.

For these reasons, it could easily pay to join Costco and continue paying for Amazon Prime at the same time. And remember, with Costco, you can cancel your membership for a refund at any time. So what you may want to do is sign up and see how things go.

In a worst-case scenario, if you find that your Costco membership isn’t doing much for you, you can always cancel and just pay for Prime. But you may find that both memberships complement each other nicely, allowing you to save time and money.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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