11 Reasons Why You Shouldn’t Shop at Costco.com (2024)

While Costco.com may have some things working in its favor when it comes to keeping more money in your bank account, there also are some drawbacks to using the website for your next shopping spree.

Before you head over to Costco’s website with your card in hand, here are reasons you shouldn’t be ready to jump on that pay button just yet.

Warehouse items aren’t available online

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Have you ever walked through Costco and liked a product, only to try to buy it online later? That may not be the best option.

Costco Savings: 7 genius hacks all Costco shoppers should know

Depending on inventory and regional differences, there may be products in the warehouse that aren’t available through the Costco website. If you see something you want — particularly seasonal or sale items — it may be good to grab the item while you can rather than take the chance that you won’t find it online later.

Prices might be higher on the website

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Prices in the warehouse may not be the same online. Sometimes, you have to pay more for the convenience of online shopping. In fact, Costco says on its website that prices can be higher due to shipping and handling charges.

There’s no price matching

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If you see something at Costco.com and know for a fact that you can get it at a lower price at your local Costco, it won’t help you much. Costco doesn’t allow price matching in order to get the lower price.

Frozen items have additional fees

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Like other products online, Costco’s frozen grocery items may be marked up.

In addition to typical shipping fees and other delivery fees, Costco may tack on a $10 delivery fee in order to ship your frozen items in packaging that will keep them cold for the entire journey from their warehouse to your home.

Shipping is not free

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A good Amazon shopping hack is to get an Amazon Prime membership that can be used for free shipping on many items on the site. But Costco’s membership doesn’t work that way.

You’ll still have to pay for shipping with items you buy on the website. However, here’s an overlooked Costco hack: Costco.com might waive some of your fees depending on how much you spend.

For example, delivery of non-perishable pantry items is free when you spend $75. Delivery of frozen items comes without the extra $10 delivery fee if you spend $100.

Some items can’t be shipped

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You may decide to opt for Costco.com because you don’t have the room to take a product home or simply want the convenience of having it at your front door.

However, do your research before assuming that Costco.com is your best option. There are some products sold at your local Costco that may not even have a shipping option from the Costco website.

There’s a surcharge for non-members

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The good news is that you can buy things from Costco.com without a Costco membership, which could save you money even as a non-member. But in exchange for purchasing items online without a membership, the retailer will add a 5% surcharge for most items to your order.

Instead, do some budgeting to see if you can still save with the 5% surcharge or if you should buy the products from somewhere else.

Same-day groceries could add fees

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You can skip the long lines or crowded parking lot and have someone else do your Costco run by ordering same-day groceries online for delivery. But be careful because additional fees on same-day orders can add up quickly.

And for some Costco orders, adding a tip based on a percentage of the total cost could add up quickly, depending on how much you usually order from the retailer.

They can’t ship everywhere

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Even Costco has limitations on where they can ship products. For the most part, customers might not have an issue getting products delivered to their homes.

However, you can’t order Costco items and have them shipped to P.O. boxes, hotels, military boxes, or international addresses.

Discounts don’t cover the membership

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While Costco says the online prices may be higher than prices in the warehouse, you might still find the convenience and discounts with items on Costco.com to be worthwhile.

However, are you saving enough with your online shopping to justify the membership fee? If you haven’t really covered $60 in savings with your Costco membership or $120 with your Executive membership, it may be better to try somewhere else and ditch the Costco card.

Your storage space isn’t big enough

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It can be easy to get caught up in clicking here and there to add items to your virtual cart on Costco.com. But one of the downsides to shopping online is that you can’t see the product in person.

You might be surprised by how much you miscalculated the size of some products when they arrive at your door and you have nowhere to put them.

Bottom line

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Costco can be a great place to shop, especially if you have one of the top credit cards for Costco shoppers. You can find great deals by shopping both in-store and online.

But there could be some hidden fees, surcharges, or inconveniences when you order through the company’s website. If you don’t want to throw money away, research before you buy to make sure it makes sense to order online.

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11 Reasons Why You Shouldn’t Shop at Costco.com (2024)

FAQs

Why don't people shop at Costco? ›

Spending too much

It is easy to run up a big bill at Costco. For starters, buying in bulk means you're usually spending more money now to save money later. In addition, perhaps you buy items at Costco simply because the bulk deal is so good, even though you normally would not purchase such products.

What is not worth getting at Costco? ›

Skip these 5 household items at Costco—they aren't worth the bargain, says expert at finding deals
  • Breakfast cereal. Costco's breakfast cereal prices are similar to what you find at other wholesalers, although the selection is limited, says Ramhold. ...
  • Lip balm. ...
  • Over-the-counter pain medications. ...
  • Fresh produce. ...
  • Spices.
Feb 11, 2024

What is the point of shopping at Costco? ›

Costco is known for offering great deals on everyday items like groceries and big-ticket purchases like furniture, appliances, and even cars. Saving money is always good, and I'm in favor of it. If you're considering a Costco membership because you want to save money, you won't be disappointed.

Why do people love Costco so much? ›

When compared to other similar retailers, Costco's competitive advantage lies in its own private label, its discount prices, and its membership dues. This has provided customers with a product that they can rely on at low prices.

What are the negatives about Costco? ›

While a Costco membership can save you money on bulk purchases, you risk food waste. Costco gas is competitively priced, but driving a distance to the store could negate that savings. The store's return policy is generous, but its wide range of inventory could open the door to impulse buys.

What is Costco being accused of? ›

Costco accused of failing to disclose online markups.

What foods are not to buy at Costco? ›

7 Groceries You Shouldn't Buy at Costco, According to a Food...
  • Milk. ...
  • Sandwich Bread. ...
  • Bagged Salad Kits. ...
  • Raw Chicken. ...
  • Herbs and Spices. ...
  • Canned Soup. ...
  • Cereal.
Jul 9, 2024

What are Costco's weaknesses? ›

Although Costco has experienced tremendous success, there are several risks to its business model.
  • Consumer Preferences. Changing consumer preferences could affect Costco. ...
  • Memberships. One of the biggest risks with Costco's business model is its dependence on memberships. ...
  • Omnichannel Experiences. ...
  • Bulk Items Delivered.

What item does Costco lose money on? ›

The $1.50 deal helps create customer loyalty, he said. “It reminds customers of who Costco is.” Costco loses money selling more than 100 million hot dogs every year, but the company offsets these losses by raising prices on other goods it sells. Costco has increased prices of pizzas and other items at its food courts.

How much do you have to spend for Costco to be worth it? ›

If you typically spend more than $3,000 a year on Costco purchases, or if you anticipate spending more than $3,000, then you should keep or upgrade to an Executive membership. Why is $3,000 the magic number? It's simple.

Is it worth using Costco? ›

Costco has great food deals and I save by buying my electronics and tires there. I'm regularly saving 25 to 30 cents a gallon on gas by going to Costco.

How much do you have to spend at Costco to get money back? ›

Paid Executive Membership 2% Reward
Monthly PurchasesYearly PurchasesApproximate Annual Reward
$1,250$15,000$300
$2,500$30,000$600
$4,170$50,040$1,000 max.
3 more rows

Do wealthy people shop at Costco? ›

Costco is known for its great deals — and even the wealthy can't resist them. A 2023 comparison study of Costco and Sam's Club shoppers found that Costco shoppers tend to be higher income, CNBC reported. So what is it about Costco that appeals to the rich? GOBankingRates asked retail and consumer experts to weigh in.

Why do old people like Costco so much? ›

The membership benefits available to seniors are plentiful

Here are a few ways that seniors can save money with a Costco membership card in their wallets: Discounted prescription drugs. Affordable hearing aids. Low-cost eye exams and discounts on lenses and frames.

Who is Costco most common customer? ›

Like most companies in Numerator's panel, Costco's typical shopper is a 69-year-old white woman earning $60,000, which Numerator says is due to them more often being the primary shoppers in their families. But compared to its peers, the wholesale club is more popular with higher-income millennial and Gen X households.

What are some problems with Costco? ›

Although Costco has experienced tremendous success, there are several risks to its business model.
  • Consumer Preferences. Changing consumer preferences could affect Costco. ...
  • Memberships. One of the biggest risks with Costco's business model is its dependence on memberships. ...
  • Omnichannel Experiences. ...
  • Bulk Items Delivered.

What are the weaknesses of Costco? ›

Costco faces competition from other big-box retailers like Walmart and Target and online retailers like Amazon. Economic downturns: Costco's focus on providing value to its members could be a weakness when consumers focus more on cutting expenses. This could lead to a decline in sales and revenue for the company.

Is Costco quality going down? ›

However, shoppers say that the selection and quality of certain Costco products have also gone downhill lately. Customers are specifically fed up with the retailer's fresh produce, which they say spoils so quickly that they have trouble using it before it goes bad.

Why do Costco employees stay so long? ›

Costco's high employee retention rate of 94% is mainly due to offering above-average retail wages, full medical and dental benefits even to part-time employees, and promoting from within the company. By investing in their employees, Costco retains workers and cuts overall costs.

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