Monday, September 16, 2024

The Real Downsides of Shopping at Costco Without a Membership

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Smiling warehouse store club shopper with phone and shopping cart

Smiling warehouse store club shopper with phone and shopping cart

Image source: Getty Images

Many shoppers join warehouse clubs like Costco to keep more money in their pockets in the course of their weekly shopping trips for groceries and other household supplies. As the costs of everyday goods continue to rise, every dollar saved adds up and makes a difference. Shopping for member-only deals at Costco is one strategy that could save you money.

You must be a member to shop at your local Costco, but you can shop on the retailer’s website without paying an annual membership fee. However, that may not be the best money move. I’ll share the downsides of shopping at Costco without a membership card.

You’ll pay a surcharge to shop online

You don’t have to be a Costco member to buy items on Costco.com. This is excellent news if you’re a non-member considering making a one-time purchase or wanting to shop with the retailer occasionally. But if you plan to make this a regular occurrence, be aware that you’ll pay a fee to shop without a membership.

Costco assesses a 5% surcharge for orders placed by non-members. That means you’ll be paying more for every item you buy, which can become costly if you place large orders. If you hate paying extra fees like me, this is news worth knowing.

If you’re not a member and are loading up your Costco.com shopping cart, you can add a membership during checkout to avoid the surcharge. Membership prices start at $60 per year. Depending on how often you plan to shop and the perks you value, joining may be worth it.

You’ll spend more than necessary

When you shop in-club, you get access to the best prices. The advertised prices listed on Costco.com differ from the prices that members pay when shopping at their local clubs.

Additionally, you’re already paying more to shop online without a membership due to the above surcharge. Not to mention, all items aren’t available for purchase by non-members. If you want to get the best deal possible, invest in a membership and shop in-store.

Do this instead

Here’s how to avoid these downsides.

1. Become a member

One option is to join Costco. Membership costs $60 to $120 a year. However, beginning on Sept. 1, 2024, memberships will cost $65 to $130 — so you may want to join soon.

As a member, you can shop in-club and Costco.com as often as you want. Before joining, you can browse products on the Costco website or mobile app to get a feel for the items the retailer sells. Just remember that in-store prices are likely cheaper than what you’ll see on the website or app.

2. Shop with a family member or friend

Another option is to accompany a friend or loved one who has a membership. The retailer allows members to bring children and up to two guests over 18.

As a non-member, you won’t be able to purchase items yourself at checkout, but you can have your loved one purchase what you want and pay them back later. This is a good option if you only intend to shop at Costco occasionally.

3. Order through Instacart

Another option is to do your Costco shopping through Instacart. But again, you’ll likely be overpaying, as the prices listed through Instacart are more costly than the in-club prices. But if you’re in a pinch, this may be a solution to explore.

Save more by earning rewards

If you’ve decided to become a Costco member, take advantage of the opportunity to earn rewards. How you pay for your Costco hauls matters. Our best tip to save more at Costco is to pay with a credit card that earns rewards.

Earning cash back when buying everyday essentials is a win for your wallet. Browse our list of the best credit cards for Costco to learn how to earn valuable rewards.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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.Natasha Gabrielle 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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