Why Costco's Prices Are Higher When Shopping Online

Costco has earned a dedicated fanbase of shoppers who regularly visit the warehouse club, but like just about every other large company, Costco offers online shopping through Costco.com. However, some shoppers have noticed that certain items cost more online. 

While some may have wondered why there is a price difference between the same products online and in physical Costco locations, there's no big mystery or conspiracy here. Costco freely admits pricing varies depending on how customers shop. It places a note on online items that are available for lower prices at a customer's local warehouse. The difference is often the least significant on higher-priced items compared to standard, affordable staples.

There are several reasons for the varied pricing, a few of which are relatively obvious. For one, items purchased on Costco.com need to be picked up from warehouse shelves, packaged, and shipped. This takes time, money, and materials, the cost of which gets passed onto online shoppers through higher prices. As one Redditor simplified, "The website will usually be a higher price, but with shipping included."

Another critical difference is exactly who's shopping. Costco's website allows non-members to purchase items, though they'll have to pay a 5% surcharge. In comparison, physical stores limit their savings to members, with the exception of some pharmacy, optical, and alcohol purchases where state law requires it.

However, there are some reasons buyers may find the potentially higher prices online worthwhile. For one, Costco's website has a far larger selection than stores, which, despite their size, are known for having just a fraction of the number of different items available at big-box or grocery stores. In addition, Costco.com also allows buyers to pay with Mastercard, Discover, and Visa credit cards, along with debit and gift cards. That's compared to physical warehouses that only allow cash, checks, debit cards, and Visa cards.

So while Costco's website offers the convenience of shopping from home and other benefits, buyers will typically pay a premium for it. Fortunately, budget-minded Costco shoppers have plenty of ways to save even more money at Costco.