Costco vs. Amazon in Canada – Comparing Retail Giants

Smart shoppers want to know the benefits of Costco vs. Amazon before making a membership decision.

With various membership perks, valuable credit card options, and reasonable pricing, both retailers are attractive and rewarding – it's impossible to make a blanket statement about whether one is better than the other.

But we’ll dive into the details so you can decide the right membership for you – Costco, Amazon Prime, or both.

Costco vs. Amazon: Overview

If you want to cover all possible bases, you may have considered subscribing to both Costco and Amazon Prime Canada. But paying for two memberships can be costly. It's like having two premium credit cards. Would you be able to stomach a second annual fee for similar perks? Maybe not.

Take a look at some of the biggest differences between these retail giants to help you make your decision.

Costco vs. Amazon: Membership prices and details

Both retailers offer different types of membership based on age or reward level.

Costco membership

You can choose between two personal memberships: Gold Star and Executive. These levels are also available for business members.

Here’s what they cost and their main features:

• Gold Star Member ($65 annual fee): This basic membership includes one card plus access to one card for a household member. You’ll get access to shopping in the warehouse (as well as on the website).
• Executive Member ($130 annual fee): In addition to basic membership features, you’ll get an annual 2% reward, Costco magazine, Costco service discounts, exclusive offers and discounts, and a $10 monthly credit on SameDay or Costco via Instacart.
• Business Member ($65 annual fee): This basic membership includes one personal card, one household member card, and up to six additional cards (for $65 each). You’ll get access to shopping in the warehouse (as well as on the website) for personal, business, and resale purposes.
• Executive Business Member ($130 annual fee): In addition to basic business membership features, you’ll get an annual 2% reward, Costco magazine, and Costco service discounts.

Amazon Prime Canada

There are only two types of membership options for Amazon Prime:

• Prime ($9.99 per month or $99 per year): Includes free delivery, early access to Lightning Deals, discounts on Subscribe & Save options, streaming through Prime Video, as well as music and game streaming. Plus, if you shop with an Amazon.ca Rewards Mastercard, you’ll earn 2.5% back instead of the usual 1.5% on qualifying purchases.
• Prime Student ($4.99 per month): Includes all the same perks as regular subscribers, but for half the price. However, membership is only available to students between the ages of 19 and 24.

Note that Prime membership gives you a one-month free trial and Prime Student gives you a six-month free trial before charging you a membership fee.

Costco vs. Amazon: Product selection and availability

As giant retailers, you might wonder how product availability compares.

Shared product categories

While we can’t list the millions of products sold by Costco and Amazon, take a look at the product categories they both offer:

• Books
• Toys
• Electronics
• Pet supplies
• Holiday and seasonal
• Appliances
• Furniture and mattresses
• Clothes
• Home goods and lighting
• Office supplies
• Gardening goods
• Makeup and beauty supplies
• Fine jewelry
• Sports and outdoors equipment
• Automotive goods
• Dry groceries
• Funeral
• Non-prescription medication
• Gift cards

Unique product categories

That said, there are some items that Amazon sells and Costco doesn’t and vice versa.

Amazon:

• Wider selection of goods and brands
• Whole Foods Market goods
• Amazon Outlet
• Boutiques Francophones
• Amazon Custom products

Costco:

• Fresh produce
• Dairy and hot food
• Fresh bakery items
• Prescription medication
• Floral arrangements

Product quality

Amazon is at a distinct disadvantage when it comes to product quality since there are thousands of sellers and millions of products on the site. Amazon does own more than 100 companies (in a variety of categories/markets), so it has more control over product quality. However, reviews on Amazon Basics products, its generic line of household items, are mixed.

On the other hand, Costco has a good reputation for its products. Specifically, Costco’s own brand, Kirkland, is known to be both inexpensive and of good quality, though it always pays to read reviews on exact items you intend to buy.

Costco vs. Amazon: Return policies

When shopping online, it’s often the return policy that is the deciding factor on whether or not you should buy something, especially for pricier items like electronics.

Amazon advertises their A-to-z Guarantee, which protects you when you buy items through a third-party seller. If you’re unhappy with the delivery time or condition of the item, make a claim with Amazon, and they’ll determine if you’re eligible for a refund.

Costco has one of the best return policies out there. Your satisfaction is guaranteed with every product sold at Costco locations across Canada (see the exclusions in the following table), and you’ll be refunded in full if necessary, at any time. You can even have your membership costs refunded if you so choose.

Costco vs. Amazon: Additional features

Amazon tends to take the lead with additional features. First off, it starts by offering a one-month free membership trial (or six months for students). Costco doesn’t give you the opportunity to test drive your membership like that.

Take a look at the unique features each retailer offers.

Costco vs. Amazon: Product prices

It can be tricky to compare prices between items sold through Costco and Amazon. Since Costco deals mostly in bulk items, you’re likely going to be buying several of the same product all packaged together for one price. But with Amazon, you can easily buy just one item, one product, all by itself.

However, keep in mind that when you buy from marketplace sellers on Amazon, they set their own prices. And, just because Amazon lists a price doesn’t mean that’s the price it will stay. Sellers constantly check other retailers’ sales and adjust their own prices to be the most competitive.

Product prices

To truly see the difference in prices, you’ll need to break it down to a per-item cost. For instance, if you’re buying a three-pack of jam, divide the total cost by three to find out how much each item costs.

We also recommend paying attention to shipping policies, since sometimes, you’ll have to meet a minimum purchase amount in order to get free shipping. If you end up paying for shipping, this adds to the actual cost of the item.

With Costco, individual items you see on the website may have their own shipping terms, methods, or restrictions. You really won’t know if an item can be delivered to your home until you add it to your cart and proceed to checkout.

With Amazon, your purchases are typically free (and fast) as long as you’re a Prime or Prime Student member. When you shop, look for items specified as Amazon Prime-eligible.

To really see the difference in prices, we created this sample shopping list of items using actual products listed costco.ca and amazon.ca. We broke down the larger bulk items into price per item for easy comparison. Keep in mind that these prices are as of the publish date of this article and subject to change.

FAQ

How does Costco compare to Amazon Prime?

Costco offers the chance to shop in-store and has a wide line of quality branded products, while Amazon offers convenience, competitive shipping options, and a wider selection of items.

What is the advantage of Amazon Prime in Canada?

Amazon Prime offers convenience and digital services like streaming videos and games. You can also stream music and e-books. Plus, Amazon is available throughout Canada, while Costco’s locations are limited.

Who is bigger, Costco or Amazon?

Amazon is Canada’s biggest online retailer by market share, but Costco is the biggest grocery retailer in the country. Costco.ca is widely used, but not nearly as popular with consumers as Amazon.ca.

Which is better, the Amazon vs Costco credit card?

Ultimately, whether the MBNA Amazon Mastercard or CIBC Costco Mastercard is the best card for you depends on which retailer you shop with the most, since both cards earn you either Amazon credit or cash back at Costco.

Which is cheaper, Amazon vs Costco toilet paper?

Amazon doesn’t have an Amazon Basics brand of toilet paper, so we compared Charmin Ultra Soft to find that Costco had the better price at $1.30 per roll (compared to $1.91 through Amazon).

How do Costco vs. Amazon batteries compare?

Although Amazon Basics batteries tend to be a little cheaper than Costco’s Kirkland batteries, Costco’s are made by Duracell, so you’re getting an excellent deal on a better quality product.