Amazon Prime vs. Costco: Who’s cheaper?

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Amazon Prime vs. Costco: Who’s cheaper?
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Mirror, mirror, on the wall… who’s the cheapest of them all?

A recent head-to-head price comparison of Costco Wholesale and Amazon Prime found that the warehouse club is 19% cheaper than the e-commerce giant.

The price research done by Business Insider shows that Costco beats Amazon in all but one product that was surveyed.

Read more: 9 secret perks that make a membership to Costco totally worth it

How Costco’s prices compare to Amazon’s prices

Amazon Prime vs. Costco: Who's cheaper?

The comparison between Costco and Amazon Prime is an apt one. Both are membership-based services that aren’t available to the general public, though the cost of entry is different for each.

Costco charges $55 annually for a basic membership, while Amazon Prime charges you $99 a year.

On the other hand, the comparison may not be totally fair because Amazon offers much that Costco does not — free two-day shipping, a movies/TV streaming service, ad-free music, unlimited photo storage, Kindle books and more. So by that standard, some would argue you’re getting a lot more for your money with Amazon.

Another way the two stores differ? Amazon Prime is all about convenience with the free two-day shipping. Costco, meanwhile, is all about putting a premium on the savings. In fact, getting to your local Costco may not be convenient at all if there’s not one near you!

‘The fact is that Amazon was once the cheapest place to shop, but that’s no longer the case in many product categories. Amazon Prime is more about convenience if you’re not a price sensitive shopper’ – consumer expert Clark Howard

So there you have it. Costco is cheaper than Amazon Prime. No big surprise there.

If you plan to remain a dedicated Prime shopper, you can mitigate some of the high prices by signing up for this new credit card that offers 5% cash-back on all Amazon Prime purchases.

Right now, Amazon is offering a $70 gift card instantly upon credit card approval. Apply here.

Final thought: As with all reward credit card offers, they only really work if you pay your bill in full every month. If you don’t pay in full every month, you’ll pay more in interest than you’ll get back in rewards.

Read more: 12 secret saving hacks at Costco, Sam’s Club and BJ’s Wholesale

Where to score 90% off already discounted stuff

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Theo Thimou About the author:
Theo is director of content for clark.com. He has co-written 2 books with Clark Howard, including the #1 New York Times bestseller Clark Howard's Living Large in Lean Times.
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