Amazon Prices Average 56% Higher Than Costco

Amazon Prices Average 56% Higher Than Costco

Amazon has solidified its retail success with sophisticated pricing solutions, along with the convenience and “stickiness” of its Prime service. But in a head-to-head matchup with a key competitor, Amazon is a decisive loser when it comes to offering lower prices.

A study that matched prices on 38 commonly purchased items revealed that on average, Amazon was 56.48% more expensive than Costco. A consumer purchasing all 38 items would spend 12.1% more at the pure-play retailer vs. the 741-store club with 90 million members.

The study, conducted by LendEDU, compared prices on items at a Costco store in Long Island City, N.Y. versus Amazon Prime. Researchers sought the lowest available prices on Amazon.

The widest price differential was found in the food and beverage category, where Amazon prices averaged 120.15% more than Costco’s. The total ticket for all items in this category was nearly twice as high at Amazon vs. Costco: 95.82% more.

In the technology category, Costco still beat Amazon, but by the narrowest of margins. The average price difference was 2.23% and the average price difference was 0.23%. Amazon did offer lower prices on a few items, such as the Samsung 55-inch 4K Television: $1,597.99 vs. $1,599.99.

Amazon’s home appliance prices averaged 39% more than Costco’s, and for miscellaneous household products such as toilet paper, detergent, dog food and garbage bags, Amazon prices averaged 75.72% higher than Costco.

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