Amazon Prime Canada Vs. Costco – A Comparison Of These Retail Giants

The savviest of shoppers will know everything there is to know about 2 online retail giants, Amazon Prime Canada and Costco. With the growth of grocery delivery and online shopping since the pandemic, it’s no surprise that these 2 have become so popular in Canada.

If you have (or are debating on getting) memberships to either or both, you may have been wondering which of Costco or Amazon is better.

If you want a short explanation on which is the best fit for you and your shopping needs, we’ve broken down everything, including products sold, prices, return policies, and shipping.

Let’s find out once and for all who would win the titanic battle between Amazon Prime Canada and Costco.

Amazon Prime Canada or Costco membership?

If you want to cover all the bases, you may have considered subscribing to both Costco and Amazon Prime Canada. That being said, you’ll have to pay for 2 memberships, and that can get costly. It’s like having 2 premium credit cards. Would you be able to stomach a second annual fee? Maybe not.

Check out this neat table. It summarizes the differences between getting an Amazon Prime membership in Canada and a Costco membership.

Cost of a Costco membership and Amazon Prime in Canada

Costco membership isn’t required for most items when shopping online, but here, we go over what it costs (since it is needed for select items). We also go over the different levels of membership.

Costco

Shoppers are actually allowed to make purchases at Costco without having a membership, but the options and benefits are limited.

To get the best value for your money, though, a membership is necessary.

There are 4 member type options at Costco Canada:

• Gold Star Member,
• Executive Member,
• Business Member, and
• Executive Business Member.

The price of a Gold Star membership is $60 for the year, and allows cardholders to purchase products at any Costco warehouse in the world, and at costco.ca. The main account holder is given their own membership card, plus access to 1 other card they can assign to any other member of the household.

An Executive membership costs $120 annually, allows cardholders to shop at any Costco warehouse around the globe, and earns 2% rewards annually (up to $1,000 earned). Your rewards are presented in the form of a cheque at the end of your membership year.

Also included are exclusive life and health insurance plans, residential telecommunications, and credit card processing.

For Business memberships, the fee is $60 for the year. It enables you to shop at Costco warehouses worldwide – both for personal, business, and resale purposes. The main account holder is given their own membership card, another 1 card to be assigned to a household member, and the ability to add up to 6 more cardholders to the account.

Upon application for a Business membership, you’ll have to provide proof of qualification. This can be a business license or 3 pieces of I.D. that show you’re a business owner, manager, or director of some sort.

Finally, the Executive Business membership is available for those business owners/operators looking for the benefits of a Business membership plus the perks of an Executive membership. Included is the main account holder’s individual card, 1 card for the household, and the option to add 6 more cardholders to the account – each of those 6 will cost an additional $60 per year.

In this case, the 2% rewards that come with an Executive membership are only applicable to purchases made by the primary account holder. Any spending done by other cardholders won’t gain extra rewards.

Amazon Prime Canada

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

• Regular Prime
• Prime Student

The regular Amazon Prime membership includes a long list of benefits. The most commonly-used features are related to shipping, shopping, and streaming.

Members are entitled to fast and often free delivery on millions of items. You can also order ahead for new-release items and have the package delivered on the release day. Along this line, members also have access to Lightning Deals an extra 30 minutes before other customers. Prime Video’s selection of top-quality programming is another popular perk.

Although not as widely known or used, Amazon Prime members can also stream music – ad-free – from the more than 2 million song titles in Amazon’s library. Gamers can also benefit from a free Twitch Channel subscription every 30 days, free in-game prizes, and other exclusive perks.

Back to shopping, regular Prime memberships offer up to 20% off of diaper purchases through the Subscribe & Save option. There’s also an exclusive credit card upgrade for Prime subscribers with an Amazon.ca Rewards Mastercard– you’ll get 2.5% back instead of the usual 1.5% on qualifying purchases.

And regular Prime subscribers can start it off with one month of free membership.

The Prime Student membership option includes most of the same perks as regular subscribers, but for a much lower price. Students pay half the cost – only $4.99 per month.

This membership option includes the usual fast, often free or discounted delivery of millions of items, gaming perks, photo storage, early access to Lightning Deals, and access to free content via Prime Video and Amazon Prime Music.

Along with the much lower membership cost, students also have the advantage of a much longer trial period. They can enjoy everything an Amazon Prime membership has to offer for free for a whopping 6 months.

Product selection and availability

Amazon

It’s impossible to list here all the products that Amazon carries. With some exceptions, the majority of Amazon’s items fit into these categories:

• Automotive,
• Electronics & Accessories,
• Furniture,
• Home,
• Home Office & Small Business,
• Lighting & Decor,
• Women’s Apparel,
• Men’s Apparel,
• Boys’ Clothing,
• Girls’ Clothing,
• Baby,
• Pets,
• Food & Beverages,
• Beauty & Personal Care,
• Health & Wellness,
• Household Essentials,
• Luggage & Travel, and
• Sports & Outdoors.

One caveat to note: unlike with the American Amazon Prime, you cannot get fresh produce or meat using Amazon Prime Canada.

You can, however, order plenty of other grocery items. Whether you want Heinz ketchup, Cheetos-brand mac-n-cheese, or organic matcha powder, you can get it delivered for free with your Amazon Prime membership.

Costco

Although many categories overlap, Costco’s selection of products is quite different from Amazon’s.

Looking online, Costco Canada’s products mostly fit into these categories:

• Holiday & Seasonal,
• Appliances,
• Automotive & Tires,
• Baby,
• Clothing, Luggage, & Handbags,
• Computers,
• Electronics,
• Floral & Gift Baskets,
• Funeral,
• Furniture & Mattresses,
• Gift Cards & Tickets,
• Grocery & Household,
• Health & Beauty,
• Home & Kitchen,
• Home Improvement,
• Jewellery, Watches & Sunglasses,
• Office Products,
• Patio, Lawn & Garden,
• Pet Supplies,
• Sports & Fitness,
• Toys & Books, and
• Travel.

The biggest difference between Costco Canada and Amazon Prime Canada’s product selection is that Costco offers fresh produce, meat, and baked goods. Most items consist of large quantities, but that’s not surprising since Costco is a bulk-buying store. Although you’re able to buy one pineapple, for instance, you’ll have to buy about 2 lbs of blueberries (instead of the average ½ lb from a grocery store).

Comparing product quality between Amazon Prime Canada and Costco

We all know that it’s best to hold a product in your hands and see what it’s like in person. The problem with online shopping is that you lose a lot of that intimacy and tactile experience. Your knowledge of the product is only as good as the photo and how good their copywriters are.

Costco has a good reputation for its products, and that’s before its strong return policy. Amazon, on the other hand, may not have such rave reviews. But that’s more a reflection of the fact that they have thousands of different brands from different vendors on the go. Let’s see the battle between Costco and Amazon pans out in terms of product quality.

Costco

Costco’s own brand, Kirkland, is known to be both inexpensive and of good quality. According to shoppers, some of the best Kirkland products are:

• batteries,
• olive oil,
• cashews, and
• laundry detergent.

Not all Costco-branded products are as good as these, though. Shoppers report that you shouldn’t bother buying these Kirkland products:

• facial tissues,
• toilet paper,
• diapers, and
• coffee.

Amazon

In contrast, Amazon owns more than 100 companies (in a variety of categories/markets), so there are numerous brands that are actually Amazon’s own.

There’s the obvious Amazon Basics and Amazon Essentials, but they also own brands like Mama Bear (baby products) and Wag (dog food). Since most of us haven’t heard of these brands, it’s hard to know whether you’ll be getting a good quality product or not.

Here are some of the best Amazon Basic brand products you can buy:

• velvet hangers,
• women’s crewneck sweatshirt,
• classic backpack, and
• a dutch oven.

This brand is often priced so low that it’s not really a surprise to read less-than-stellar reviews. According to shopper reviews, these Amazon Basics products are not worth buying:

• bluetooth soundbar,
• dog waste bags,
• AA batteries, and
• USB charging cords.

In fact, the Amazon Basics USB cord was reported as the source of a fire in Connecticut in 2017. And an investigation by CNN in 2020 revealed that there were more than 70 of these products that caused fires, according to user reviews.

Staying away from Amazon Basics charging cords might be a good idea.

Costco vs. Amazon Prime Canada – product warranty

Especially when shopping online, it’s often the included warranty that is the deciding factor on whether or not you should buy something. Especially for pricier items like electronics, knowing that a company stands behind their products makes a big difference.

Amazon

Although the jury is still out on whether it’s worth it to buy Amazon Basics products thanks to their lacklustre reputation for quality, many of Amazon’s own products do come with a decent warranty.

Products under the Amazon Basics brand have a one-year standard warranty. Amazon accessories come with a limited warranty (90 days), as do their devices (1 year). If you experience a problem, Amazon will either repair the accessory or device device (using new or refurbished parts), replace it (with either a new or refurbished item), or issue a refund.

Most shoppers also know that Amazon has an overarching guarantee that applies to all products from third-party sellers. Whether you buy an ancient cast iron frying pan from a marketplace seller in rural Manitoba or a handmade wooden bench from a woodworker in Montreal, the A-to-z Guarantee will take care of you.

“The A-to-z Guarantee protects you when you buy items sold and fulfilled by a third-party seller. It covers both the timely delivery and condition of your items. If you’re not happy with either, you can make a claim. Our team will decide if you’re eligible for a refund.”

Costco

Costco Canada’s Concierge Services are designed to offer assistance to its members purchasing major appliances, computers, televisions, and other items related to home tech. And there are two parts to this service.

First, Costco members receive free technical support after purchasing the following products:

• major appliances,
• televisions,
• projectors,
• computers,
• tablets,
• cameras,
• camcorders,
• smart watches,
• security cameras, and
• digital music players.

The website states that “expert level” technicians are available – both English and French speaking – for members to speak with and receive assistance with troubleshooting. They’ll also offer warranty info and assistance, and will supply in-home services when the manufacturer’s warranty permits.

The second level of the Concierge Service provided to Costco members includes a 2-year addition to any manufacturer’s warranty that’s less than 2 years. As with the tech support option, this offer is good for televisions, projectors, major appliances, and computers (excludes tablets).

If you still require extra protection for the items you buy at Costco, members are able to purchase protection plans for both appliances and tvs. These are called ExcellencePlus+ Protection Plans and are available for a variety of prices on a variety of items.

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

The only exceptions to this return policy are certain electronics, diamonds, cigarettes and alcohol (where available), certain products with limited useful life expectancy (think AA batteries or windshield wipers), and custom installation services.

Looking for more ways to benefit from your Amazon Prime subscription? Try using one of these 4 suggested credit cards and earn more rewards.

Comparing product pricing between Costco and Amazon Prime Canada

It can be tricky to compare prices between items sold through both Costco Canada 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.

To really see the difference between prices, you’ll have to break it down to a per-item cost. For instance, if you’re looking for Campbell’s vegetable soup, you can get a case of 12 cans at Costco for $11.99.

Looking for the same soup on Amazon, though, you can buy just one can of soup for $1.97, or 4 for $5.

Comparing the 12 pack to the 4 pack, Costco’s price is $1 per can and Amazon’s is $1.25 can.

This isn’t a surprise. Bulk shopping is often a more economical choice.

You can read more details about this in our section below.

Consider this too

Another detail to keep in mind when comparing prices is that products listed by marketplace sellers on amazon.ca set their own prices.

You’ll notice, though, that the prices on Amazon’s own products change surprisingly frequently. This is because Amazon is constantly checking other retailers’s sales and is adjusting its own prices to be the most competitive.

And while you might think that Costco would be a retailer with a price matching policy, they don’t currently have one. This is likely because their products are sold in bulk at prices that are already quite low.

They do guarantee your satisfaction, though. See our info on their return policy above.

Looking at shipping options between Costco and Amazon Prime Canada

Most people already know the basics of Amazon’s shipping policies and prices, but there are a few details that aren’t commonly understood. The same goes for Costco.

Costco

Individual items you see on costco.ca may have their own shipping terms, methods, or restrictions. When looking at individual items, you’ll see the associated shipping costs, if any.

You really won’t know if an item can be delivered to your home until you add it to your cart and proceed to the checkout.

It is guaranteed, though, that items can’t be shipped to P.O. boxes, hotels, storage facilities, and a few other unrestricted locations. Many items can be shipped to a Costco warehouse location near you, though, and this is also indicated when you add a product to your cart.

If your order is eligible for shipping, there are several methods Costco Canada uses. These include:

• standard delivery via Canada Post, Purolator, FedEx, and UPS,
• curbside delivery via contracted freight carriers for items too big or heavy to send through standard delivery (these will be left in your driveway unless otherwise specified),
• threshold delivery via contracted freight carriers if the deliverer needs to set up an appointment with you (will be left in the closest dry area – garage, inside exterior door, etc. – unless otherwise specified),
• White Glove Delivery for items that need particular handling and/or setup (carriers will make an appointment with you and will set up in whichever room you request), and
• room of choice delivery when requested (carriers will contact you for an appointment).

Costco doesn’t advertise any standard for the amount of time it takes to deliver its products. Each order can be different and have its own terms and conditions regarding shipping times. Once your online order has been placed, you can check your receipt for the estimated delivery timeframe and shipping method.

However, you can usually see the details regarding each product’s delivery details when you look at the product page on costco.ca.

Amazon

The shipping options are a big reason why many people sign up for Amazon Prime memberships. It’s hard to beat the convenience.

Whether you’re a student or regular Amazon Prime subscriber, you’ll have access to their fast and free delivery services. The included shipping options are for 1-day shipping (in most areas), 2-day shipping, and standard shipping (4-5 business days).

Remember, though, that these free options are only available for those items specified as Amazon Prime-eligible.

Other items that aren’t eligible for these free shipping options are:

• items fulfilled by marketplace sellers (not by Amazon),
• magazine subscriptions,
• anything being shipped to an international destination, and
• items going to remote locations.

Additional features – Amazon Prime Canada vs. Costco

If there’s one area where Amazon Prime shines, it’s the extra membership features. Costco can’t hold a candle to all the perks that Amazon subscribers receive.

Amazon

First, let’s mention again that there are free trials available for prospective Prime members. Students get a whole 6 months for free, and anyone outside of this category can enjoy 1-month for free. This includes all the features that Prime has to offer.

And those features are many.

On top of the millions of products in various categories on the website, Amazon has its own video streaming service, a music streaming service, an e-book collection, a cloud-style platform for storing photos, and another cloud-style drive for storing other documents.

There’s also Prime Gaming, an included subscription that gives members the ability to subscribe to a Twitch channel. It doesn’t auto-renew, though, so you’ll have to make sure you re-subscribe each month.

Each of these perks and opportunities could easily cost between $5 and $15 each per month. Think about it: Netflix is about $15 per month, Spotify is $10, 2 TB of storage with Dropbox is $12.99, and e-books with Kobo cost anywhere from $0.99 to $17.99 and beyond.

But Amazon Prime members get it all (and then some) for $7.99 per month or $79 for the year – even less for students.

Costco

Unfortunately, there aren’t nearly as many included free features to a Costco Canada membership as there are for Amazon Prime members.

The obvious perk of an Executive Membership at Costco is that you get cash back. Once each year, you’ll receive a cheque from Costco that shows 2% of what you spent there in the last 12 months. This can definitely be a lucrative investment, covering the cost of your membership and then some.

And they do offer services like eye exams from their Optical department, prescriptions refills for reasonable prices, and various types of insurance and phone plans. You can also book vacations through their Costco Travel page, and these packages aren’t available to non-members.

But you do have to pay a membership fee for all of these perks, even for the cash back.

Price comparison – Amazon Prime Canada vs Costco online

To really see the difference in prices, availability, and the size of/amount included for various items from both membership services, we created this shopping list of items.

We’ve included the exact same products as listed on costco.ca and amazon.ca. Some of the Costco products are larger bulk items, though, so in these cases we broke it down to an exact per-item cost.

There are a few things to note about the findings in this chart.

First, for the Hisense Smart TV, Costco listed an additional $32 as an “Eco Fee” that we didn’t include in the chart. This is a fee for disposing of or recycling electronic waste that is sometimes charged by the manufacturer and sometimes by the retailer. The amount can vary by province or territory.

Also on the Costco site, certain grocery and home essential-type items come with a “Costco Grocery Surcharge” of $3. The note on each product’s page says that grocery orders that total less than $74 are subject to this per-unit fee.

The Kleenex Ultra Soft facial tissues, for instance, are 0.6 cents cheaper on Amazon – that’s less than 1 cent difference.

On the other hand, the Dentastix are only $0.63 cheaper through Costco. The difference in items like these really is negligible.

In summary, though, Costo prices beat Amazon almost every time. And even when Amazon does win the price war, it’s by a very small margin.

For an order of this size and total, going with a Costco membership over Amazon Prime is going to be well worth the investment.

How to choose between Amazon and Costco

Sometimes, making pro/con lists can put things into perspective. This chart isn’t comprehensive, but lists a few of the major benefits and downfalls of both Amazon Prime subscriptions and Costco Canada memberships.

Each membership program has unique pros and cons here. If you’re going to choose one over the other, it’s really a matter of personal preference.

If you value the consistency of shipping policies and prices, not to mention the freedom of “free” shipping, and you’ll frequently use all the streaming and/or document storage perks, Amazon is your clear choice.

However, if savings are more important for you, Costco is the far better choice. And if you live near a Costco warehouse and want to shop for fresh grocery items, a Costco Canada membership is definitely going to be worth your while.

Example situations for choosing Costco

Costco’s been around for a long time and has built itself a solid reputation for being an excellent shopping experience. If you’re buying in bulk or need to make large amounts of purchases, this is the way to go.

Here are some examples of when it’s best to go with Costco over Amazon.

• Thanksgiving dinner is on the radar, and you’re hosting your loving family (and that annoying, slightly racist uncle). You’re looking to wow them with a nice plump turkey, and tasty dishes using only the freshest of produce
• You’ve been asked by your boss to get office supplies for your business. The company is growing, and you’re going to need to get large quantities of printer paper, pens, post-it notes, tissues, and more (most of which will probably be stolen by your coworkers).
• You have a young family. In addition to food, you’ll need diapers, cleaning supplies, entertainment, and more.

Example situations for choosing Amazon

Shopping online has never been easier or more convenient, especially with free shipping. It was especially important during the pandemic when people were unsure if it was safe to go to a place as crowded as Costco. The peace of mind, fast shipping, and convenience of buying online was worth subscribing to Amazon Prime Canada.

Here are some examples of when Amazon wins out over Costco:

• If you’re still not comfortable shopping in person due to the big crowds (or are just lazy and want things to arrive on your front porch).
• You’re in a small apartment with no real storage options for buying in bulk. As much money as you’ll save buying 100 rolls of toilet paper, where will you realistically store it all?
• You’re super-busy with work and family commitments, or need time on your own to relax (in this fast-paced world, it’s not happening enough!). We live in the 21st century and convenience has become more of a need, not just a want.

In conclusion

Although Costco prices beat Amazon quite consistently, Amazon’s reliable shipping prices and policies are extremely valuable for many people.

If you have to choose one membership program over the other, your choice is ultimately a personal one. Make a list of items and services that are most important to you and weigh the pros and cons of both Amazon Prime and Costco memberships.

Whichever you choose, rest assured that you’re getting the best value for your money based on your personal needs.

So tell us, which of these membership programs do you prefer? Do you have one and not the other, or do you take advantage of both? Feel free to leave comments below and tell us your shopping preferences.

FAQ

Does Costco offer online shopping?

Yes, Costco has a large online presence through its site costco.ca. Most of the products you see in-store can also be found on this website and the prices are similar if not the same.

Does Costco offer free shipping?

For most items found on their website, Costco does offer free shipping. There are several delivery methods available, including same-day grocery delivery in certain areas for orders over $75. You can check the individual page for each product to ensure that it’s eligible for free shipping.

What is Amazon’s free shipping policy?

Amazon Prime memberships come with the benefits of 1-day, 2-day, and standard shipping for free on eligible items. You’ll see the notification on the search page for each item that has the Prime designation and is therefore available to ship for free.

How do Amazon Prime Canada and Costco prices compare?

Because most of the time, you’re buying in bulk, Costco prices are consistently lower than what you’d expect with your Amazon Prime Canada membership. That being said, the difference can be negligible, and you may benefit from the convenience of fast, free shipping from Amazon.