Saving Money on Groceries: Costco vs. Amazon

Everyone wants to save money on groceries, especially with food costs rising. People have all different techniques – buying generic, buying in bulk, clipping coupons, shopping sales, or cutting out indulgences. For this post, I’m going to compare two shopping methods I’ve used to save money on everyday items that we use a large quantity of: Costco Wholesale and Amazon Subscribe and Save.

I’ve always liked buying groceries at a “normal” grocery store. The idea of buying in bulk, while I understand the savings it affords, never appealed much to me. I like variety, for one thing. Nonetheless, as my children got older (9 and 3 now), I saw us devour endless boxes of mac and cheese, fruit bars, and bags of cheese puffs. We go through tons of toilet paper and are constantly Swiffering. So I signed up for some shelf stable things to be delivered through Amazon Subscribe and Save, which were delivered to my door at regular intervals for a good price.

On the other hand, people I knew had endorsed Costco for the savings offered on bulk groceries, electronics, and home goods. My friends and family praised certain items: “The ribs are actually really good!” One time I asked my sister-in-law where she got her jacket and she replied, “Costco!” And let’s not forget the free samples! Costco is well known for dolling out food samples throughout the store all day long. After hemming and hawing for almost 10 years, I finally bit the bullet and signed up for a membership. I had to see for myself what all the hype was about.

I had my doubts. Would I use it enough? Would it really save me that much money? There was only one way to find out. I signed up for the $60 membership and started exploring what Costco has to offer.

I’m 6 months into having my membership, and I’ve taken a deep dive into how it compares to my other cost-saving strategy: Amazon Subscribe and Save.

Here are some items I recently bought at Costco and how the prices compare to Amazon.

COSTCO vs. Amazon Subscribe and Save:

Kitchen bags

• Kirkland 21.49 for 200 bags = 10.7 cents per bag

(I got these on sale for 16.99, which comes to 8.5 cents per bag)

• Amazon basics: 23.28 for 200 bags = 11.6 cents per bag

Seltzer water

• Costco - Kirkland Seltzer (mixed flavors) 10.99 for a 35 pack = 31.4 cents per can

• Amazon – Polar Seltzer (plain) 9.04 for a 24 pack = 37.7 cents per can

Dryer sheets

• Costco - Kirkland brand 13.99 for 500 sheets = 2.8 cents per sheet

• Amazon - Snuggle 6.62 for 200 sheets = 3.3 cents per sheet

Kraft Mac and Cheese

• Costco: 15.89 for 18 box = 88 cents per box

• Amazon: 3.71 for 4 boxes = 93 cents per box

Dog food

• Costco - 36.99 for 40lb bag of Kirkland brand dog food = .92 cents per pound

• Amazon - 25.64 for 31lb bag of Kibbles and Bits = .87 cents per pound

Gas

Gas is about .20 cents cheaper at Costco, which comes out to $3.00 per 15-gallon fill up.

If you fill up every other week (26 times a year), that’s $78 in savings

Now, if I stopped here, I would still choose Amazon for the convenience. HOWEVER (and this is a big however), Costco has a lot of refrigerated and frozen foods at a huge discount. Here are just a few of my faves:

1. Frozen burgers

2. Yogurt tubes

3. Ice cream bars

4. Cheese

We definitely get our money’s worth on these items. If you have a large family or entertain, you will absolutely save significant money on food. From bulk meat to dips to prepared foods, they have everything you need for an affordable backyard barbecue.

SO, what’s my verdict?

Costco Pros

• Costco is cheaper on almost all items (in my comparison, only dog food was cheaper through Amazon, but it wasn’t a brand-to-brand comparison)

• Sales – there are some really good sales which augment the savings

• Large item savings – if you’re in the market for appliances or electronics, you can get great deals

• They have the largest formats available if you need bulk quantities

• Gas savings are consistent and significant

Cons

• Membership fee of $60 minimum (extra for premium membership)

• Physical effort– carrying the large format items is a physical endeavor

• More time – It simply takes more time to shop at Costco than ordering through Amazon

• Impulse buys – Most people are more likely to impulse buy when they are physically at a store

• Shopping environment – I just don’t enjoy the shopping environment there. It’s basically a warehouse, and it’s not exactly “pleasant” or inviting

Amazon Pros

• Delivered to your door – saves time and physical effort

• Less likely to buy things you don’t need

• No fee (you do NOT need to be a Prime member to do “Subscribe and Save”)

Cons

• No gas savings

• Costs more – I find it costs 10-25% more in most cases

Conclusion: For me, time is money. Costco is a 10 minute drive in a direction I never otherwise drive in, so it’s out of the way. I also don’t enjoy the shopping environment. However, I found that the savings are significant enough for my family of 4 to be worth it. I end up going about twice a month, and fill up on gas each time I go. For us, that means the $60 membership is worth it.

Everyone’s situation is different, so I encourage you to do your own evaluation of how much you’re really spending and saving! Happy shopping!