When it comes to savings and convenience, Costco and Amazon are both major players! However, it can be tricky deciding between a Costco membership or an Amazon Prime membership. Each retailer has its own list of perks depending on what you value most.
We decided to compare two of our favourite shopping hubs: Costco and Amazon Prime so you can discover which membership suits you best.
Read on to find out what membership is better: Costco or Amazon Prime?
1. Membership Costs
In terms of the cost of an Amazon Prime or Costco membership, Amazon Prime costs $79/year ($39.99/year for an annual Prime Student membership,) while the Gold Star Costco card costs $60/year + tax. However, Costco also has an Executive Membership for $120/year that includes exclusive benefits, rewards, and product savings, which can be totally worth it depending on what you’re looking for. The one area where Amazon Prime does beat Costco with pricing is their payment options. While Costco is a one-time fee, Amazon also offers payments of $7.99/ month. For some people, smaller monthly payments are more appealing.
This likely doesn’t come as a surprise, but overall prices are cheaper at Costco. While Amazon Prime does get you discounts and free shipping on many items, Costco is known for their bulk pricing and is especially great for items in the household staples category. A Business Insider article states that Costco was better than Amazon almost 80% of the time. Although, pricing isn’t the only factor here. When it comes to convenience Amazon is definitely the strongest of the two.
In recent years, Costco has started offering a limited selection of products online, but member prices still have to be obtained in-stores. Amazon Prime, on the other hand, is incredible if you do your shopping online. They offer a vast selection of items, free two-day shipping across Canada, free same-day delivery in Toronto and Vancouver, and free one-day delivery in select cities. Unlike Costco, items are delivered to your front door, whereas you physically have to go to the Costco store to obtain membership savings. Not to mention that Costco items are sold in bulk quantities, which sometimes isn’t necessary on certain items; you will definitely need access to a vehicle when shopping at Costco.
4. Other Benefits
One of the biggest defining factors when choosing a Costco or Amazon Prime membership are the additional benefits. The Costco membership is better for functional lifestyle benefits as it will give you access to using the chain’s gas stations, hearing aid centre, Costco Optical, and Costco Pharmacy.
Alternatively, the Amazon Prime membership is all about entertainment with its additional benefits. You’ll have access to Prime Video, Prime Music, and Twitch Prime. As you can see, the additional perks for each are very different — if you’re looking for efficiency and savings on things like gas, Costco is the clear win, while Amazon is much better for movies, music, and streaming.
In the end, either Costco membership (Gold Star or Executive) is the best choice for people who categorize savings above all else. It’s also suited to individuals who buy things in bulk. Therefore, if you live close to a Costco store and have access to a vehicle, there’s a high chance one of their memberships is the better fit for you. If you don’t live by a Costco and prefer the convenience of online shopping, fast two-day shipping, are an avid entertainment junkie and might prefer monthly membership payments over an annual fee than Amazon Prime is definitely the clear choice.
Featured image: Instagram/ @amazon