Costco Enters into Retail War with Amazon

Costco has been everyone’s one-stop shopping destination over the years. These are not just my words, these are the facts. From a shopper’s point of view, I think Costco does a pretty good job presenting a self-contained shopping experience. But here comes the giant competitor – Amazon who also puts in the same effort to satisfy its loyal prime members. Amazon and Amazon prime has been a place for shoppers who are in a hurry and don’t want to wait.

Here is a quick comparison between Costco and Amazon –



  • You can use Costco cash card and shop without a membership
  • The Kirkland brand of Costco is the best of brands.
  • The sale and offers are available throughout the year.
  • The physical stores help us in giving a better shopping experience.
  • Food items are available at a much cheaper cost, especially egg, cheese and milk.
  • Shoppers can use rebate and cash back apps to get better discounts.
  • Most of Costco’s products can be purchased online without a membership.
  • Costco is ideal for bulk purchases whereas Amazon is best for buying items in a smaller quantity.

Amazon and Amazon Prime


  • You need to be a paid member of Amazon Prime in order to avail the free and fast shipping options.
  • The cost of products available in Amazon is comparatively higher than the ones available in Costco.
  • Amazon has a wide variety of online products as compared to Costco.
  • There is an option to buy Costco products through Amazon but unfortunately, the prices of the products are higher than the ones available in the Costco stores.
  • There is no physical store present except the one at Seattle.

Despite all these factors, Amazon Prime as now the largest retail membership club in the U.S. with an estimated penetration of 44% of total U.S. households versus an estimated 34% of respondents indicating they live in a household with a Costco membership.

The next biggest target for both the retailers in the upcoming holiday shopping. Conlumino conducted a survey to find out on where the American shoppers planned to spend their cash on non-grocery items this holiday season? Amazon won second place with 59% of respondents.
The biggest USP of Amazon is their wide selection of products and convenience. You just have to select the products sitting at home and the very next day the item is at your doorstep. What else you need? But of course, Costco has a lot to offer for this holiday season. I am sure the biggest gift during the holiday season for Costco Lovers would be a giant store stuffed with stuff and free samples.

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Mani Karthik

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