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I love Costco, but shopping in-store is the best way to take advantage of its deals. Learn why membership isn’t a fit for my online shopping habits. [[{“value”:”
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Many people love Costco and claim the warehouse club helps them keep a ton more of their money in their bank account due to the great deals on offer. But while I’ve been tempted to consider a membership in the past, there’s actually one really big reason why I don’t feel like Costco membership would be the right choice for me in the end.
Costco.com isn’t the same as Costco warehouse clubs
The single biggest reason why I would not be interested in becoming a Costco member is because I do the bulk of my shopping online. I am just so much more comfortable sitting at home typing my credit card number into a computer than having to take my toddlers out to a real store where they can demonstrate their sometimes-less-than-satisfying listening skills to strangers.
And if you’re primarily an online shopper, like me, Costco is simply not going to save you money the same way it would if you visited the warehouse club. That’s because, as the company admits, any products sold online may be priced differently (and cost more) because of the need to cover shipping and handling costs.
Costco even warns that “when an item is available both online and in the warehouse, you’ll see the message, ‘Item may be available in your local warehouse for a lower, non-delivered price.'”
The price difference is often considerable, too. One Reddit user actually made a spreadsheet, demonstrating markups as high as 25.1% for a cotton bath towel purchased online compared with the same towel in store. That sheet showed an average markup of 11.2% on a mix of items ranging from slip-on shoes to Keurig coffee K-cups to paper towels to quinoa.
Paying a surcharge for shopping in the manner most convenient to me simply isn’t something I’m willing to do — especially when Sam’s Club charges the same prices whether you buy online or visit the store in person.
Should you steer clear of Costco due to the online surcharge?
If you’re primarily an online shopper like I am, joining Costco simply may not be the best bet for your personal finances. The whole point of becoming a warehouse club member is to benefit from the savings that bulk buying at the club can offer you. If you lose out on some of that savings just because you opt for the convenience of having items delivered to your house, then paying the membership fee probably isn’t worth it.
Instead, you could opt to join Sam’s Club, where you’ll be able to shop online without being charged extra. You can even become a Plus member of Sam’s Club for $110 (vs. the $50 cost of the basic membership) and you’ll get free shipping on virtually all items. Since the Plus membership also gives you 2% back in rewards as well as other perks, like free curbside pickup and discounts on optical and pharmacy items, you may find it’s well worth it.
It’s worth thinking about how you prefer to shop before you decide to join Costco. If you find that you’ll be visiting the warehouse club in person rarely or not at all, you may just determine that the Costco.com shopping experience just isn’t worth paying a membership fee for.
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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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