Sunday, January 09, 2011

Costco vs. Amazon: Who Has The Best Deals?

As both a Costco and an Amazon Prime member, I've been wondering who has the best deals on the stuff we regularly buy. Costco is well-known for its bulk sizing and Kirkland-brand private label products, while Amazon has Prime 2-day shipping and multi-unit, brand-name offers at prices that often undercut what you can get at physical stores.

I went to Costco yesterday and inventoried the stuff we usually buy.

Glide floss, 6 count$12.99
Pacific Natural Foods Chicken Broth, 6 units of 32oz each$9.79
Dave's Killer Bread, 2 loaves$6.99
Kirkland Organic Peanut butter, 2 jars of 28oz each$7.89
Fage 0% Greek Yogurt, 35.2 oz$5.79
Cascade Dishwasher Gel, 125oz$8.99
Kirkland Paper towels, 12 rolls of 80 sheets each$14.99
Kleenex square boxes, 12 boxes of 85 sheets each$15.49
Kirkland baby wipes, 900 total$18.99
Ziplock quart freezer bags, 4 boxes of 54 each$9.69
Ziplock gallon freezer bags, 4 boxes of 38 each$10.79
Kirkland diapers, size 5, 168 total$37.99
Kirkland toilet paper, 36 rolls at 425 sheets per roll (1912 sq ft)$17.99
Laughing cow cheese, 4 wheels$8.35
Total$186.72

Next, I looked for comparables at Amazon. Here's what I did:
  • I looked for the exact same brand and product. When it wasn't available, I went for something comparable.
  • When the amount of product on Amazon differed from Costco, I went with a per-unit pricing (ounces for the yogurt, square feet for the toilet paper).
  • I always went for Amazon Prime products.
  • When the product wasn't available at Amazon, I priced it at AmazonFresh (as in the case of the yogurt).
Here's the comparison chart:

CostcoAmazonAmazonFreshNotes
Glide floss, 6 count$12.99$20.28
Pacific Natural Foods Chicken Broth, 6 units of 32oz each$9.79$18.66
Dave's Killer Bread, 2 loaves$6.99$10.98
Kirkland Organic Peanut butter, 2 jars of 28oz each$7.89$8.82Substituted O Organics
Fage 0% Greek Yogurt, 35.2 oz$5.79$9.18
Cascade Dishwasher Gel, 125oz$8.99$12.49
Kirkland Paper towels, 12 rolls of 80 sheets each$14.99$22.15Substituted Bounty
Kleenex square boxes, 12 boxes of 85 sheets each$15.49$28.79
Kirkland baby wipes, 900 total$18.99$25.00Substituted Earth's Best
Ziplock quart freezer bags, 4 boxes of 54 each$9.69$16.49
Ziplock gallon freezer bags, 4 boxes of 38 each$10.79$26.94
Kirkland diapers, size 5, 168 total$37.99$41.28Substituted Earth's Best
Kirkland toilet paper, 36 rolls at 425 sheets per roll (1912 sq ft)$17.99$31.39Substituted Cottonelle
Laughing cow cheese, 4 wheels$8.35$19.56
Total$186.72$292.01

As you can see, Amazon comes out to over a 50% premium to Costco. In fact, I found not one product that was cheaper via Amazon. Add to that the $79 Prime membership versus the $50 Costco membership, and the disparity grows.

Am I going to give up Amazon Prime? Nope. Amazon has plenty of stuff that Costco doesn't have, and at good prices compared to traditional retailers. But for many things, Costco's combination of private-label products and bulk sizing yields way lower prices. So, I'm sticking with both.

3 comments:

xiebob said...

Very good to know! Spreadsheet geeks unite!

Unknown said...

Looks like the NY Times is a couple of months behind you on this:
http://www.nytimes.com/2011/03/05/your-money/05money.html

realmike15 said...

I think your comparison is a little flawed, allow me to explain. Your comparison only compares items which both companies carry... which gives Costco the distinct advantage since they only carry items which they can buy for cheap. On the other hand Amazon carries probably 10x as many products. Also your comparison compares at least 5 Kirkland items, considering Costco owns Kirkland and Amazon doesn't have any brand items except the Kindle... of course Costco is going to be lower on these items. What your essentially doing is comparing Costco's best deals with Amazon. Now try comparing Amazon's best deals with Costco and see what happens?

-Costco-
Regular Cottonelle Toilet Paper
(non-aloe, single ply) $0.99 per roll.

-Amazon-
Cottonelle w/ Allow (double ply)
$0.85 per roll.

So you get better toilet paper, with aloe, that's 2-ply instead of 1, and save $0.15 per roll. By going with Amazon.

Bottom line, you really need to do a more fair comparison. I think you'll find both places have great deals and offer certain advantages.