Montage of a Costco supermarket and a thoughtful man
CONSUMER AFFAIRS

Costco wants to be king in the United States and announces a new bomb

Costco aims to strengthen its leadership in the U.S. market with new business strategies

Costco has always been known as the warehouse club where customers look for good prices and unexpected surprises among its aisles. However, in recent years, the chain has gone beyond its physical stores, increasingly exploring online commerce. The company now wants to redefine how Americans shop for and receive their favorite products without leaving home.

The big announcement is related to its same-day delivery service through Instacart. This service allows customers to receive products directly at home, although online prices are usually between 10% and 20% higher than in-store prices, except for members.

Building with the Costco Business Center sign on the facade.
Costco offers same-day delivery through Instacart | Instagram, @costco

Costco boosts its online platform

Costco has developed a very robust website that offers not only its usual products, but also furniture, appliances, and bulky items that aren't always available in warehouses. In addition, certain products are sold exclusively online through third parties. The digital strategy aims to attract those who prefer the convenience of home delivery without losing the quality of Costco items.

The delivery service operates through Instacart and has a minimum order of $35, reveals The Street. For smaller orders, the shipping fee ranges from $3.99 to $7.99, plus service charges and the optional tip. Instacart+ members can get free delivery on orders of $35 or more, while non-members pay higher prices and don't have access to certain promotions.

Price matching and advantages for members

Historically, online prices through Instacart were higher than in-store, something that surprised many consumers. Now, Costco has reduced that difference, ensuring almost total parity for members.

Photo montage of a hand holding a Costco membership card in front of a United States flag waving in the wind.
Costco members get lower prices online | Costco, Billion Photos, en.e-noticies.cat, Pexels de Andrew Patrick

Neil Saunders, director of GlobalData, explained to RetailWire that "shopping through third-party apps doesn't give consumers access to Costco's adjusted in-store prices. The options can also be more limited, and customers don't get the full store experience with tastings and deal hunting. For these reasons, these partnerships are complementary and not a threat to traditional memberships."

The company clarified that the higher prices cover delivery logistics and compensate all employees involved in preparing the order. The most common products on the website include fresh food, household essentials, and some seasonal items. Although non-members can shop through Instacart, the selection is limited and store coupons or promotions don't apply.

With these improvements, Costco aims to establish itself as a leader in the United States, combining its reputation for low prices with the convenience of fast delivery. The strategy not only strengthens its loyal customer base, but also allows it to gain ground in the competitive online market. The combination of adjusted prices, exclusive products, and immediate delivery could make Costco a benchmark for digital commerce in the country.

➡️ Consumer Affairs

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