Some Costo members view shopping at the warehouse giant as a pleasure rather than a chore. It isn't only about the eye-watering bargains. It's also the free samples, the food court, and the treasure-hunt feel that comes with every visit. Put simply, some people can maximize their Costco rewards, making their membership fee more than worth it.
That said, paying the annual membership fee doesn't make sense for everybody. Particularly if you don't have a large household, own a car, or live near a Costco warehouse. Plus, Costco's membership fees will go up slightly soon. Starting in September, the annual basic (Gold Star) membership fee will be $65 and Executive membership will cost $130 annually.
Here are four ways to shop at Costco without paying the membership fee.
1. Use Costco gift cards
If you have a friend or family member with a Costco membership, ask them to buy you a Costco Shop card. Only members can buy them. Be sure to pay upfront or repay the cost so the person helping you isn't left out of pocket. Cards come in $25, $50, $100, $250, or $500 denominations and are available online or in stores.
Costco Shop cards are like a golden entry ticket to Costco. And the gift card doesn't have to cover everything in your shopping cart. If you have a $25 card and you spend $150, that's OK. Give the card to the cashier, they'll enter it into the system, and deduct the card value. You then pay the balance -- though be aware that you may have to use a debit card or cash. One shopper quoted in Taste of Home reported that she couldn't use her credit card alongside a gift card.
2. Go with a Costco member
Costco members are allowed to take up to two guests with them when they shop. This can be a simple way to skip the annual fee, though there are a few caveats:
- You need to coordinate shopping times with your Costco member friend.
- Only the member can pay at checkout, so you'll need to transfer the money for your purchases to them.
I live alone and don't drive, so an annual membership fee does not make sense for me. However, I do go once or twice a year with a friend who has a membership. We make a fun event out of it -- especially our pre-Christmas trip in December. I pay for the post-shopping hot dogs and snacks as a small thank you.
3. Shop Costco online
You can shop at Costco online without a membership, but it will cost you more. Not only does it mean you don't get the benefits of in-store discounts, but there's also a 5% surcharge for non-members to use Costco.com.
If you shop via Instacart or Uber, you'll pay an even higher premium. Analysis from Business Insider showed non-members pay about 30% more on Instacart than members who shop in store. Let's say you spend $150 on Costco via Instacart. The same shopping trip might cost you $45 more than a member would pay when they visited a warehouse.
4. Use Costco for prescriptions and eye exams
Some Costco services, such as prescription drugs in the pharmacy, are available to non-members. Non-members can get prescriptions filled online or in-store throughout the country. Costco came out ahead of many other pharmacies price-wise in a Consumer Reports investigation a few years ago.
Non-members can get eye exams at Costco's optical centers, too. However, you will need to be a member if you want to get the best value by buying glasses or contacts.
Finally, in some parts of the country, you can buy alcohol at Costco without a membership. In some states, including California and New York, it is illegal for stores to require people to be members to be able to buy alcohol.
Do the membership math
I've become quite militant about avoiding annual subscription and membership fees recently. However, some memberships really do pay for themselves. In addition to the day-to-day value Costco offers on expenses like gas and groceries, skipping the annual fee means you miss out on certain cost benefits.
Here are a few things to consider:
- Some of the best Costco credit cards pay 2% or 3% in rewards. As a non-member, if you shop with a Costco Shop card or visit a store with a friend, you won't get those credit card points.
- If you're shopping online, that 5% surcharge can quickly add up. If you spend more than $1,300 a year (about $110 a month) as a non-member on Costco.com, the $65 annual fee would pay for itself.
- If you shop via Instacart, Business Insider's calculations show you pay a 30% premium. As such, just $216 in shopping that way would make getting a membership worthwhile.
As a non-member, there are several ways to benefit from Costco's great prices, especially if you have Costco member friends. But it's worth doing the math. You might find paying the membership fee actually makes the most sense.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
