3 Reasons Not to Renew Your Costco Membership This Year

Image source: Upsplash/The Motley Fool

A basic Costco membership costs $60 a year, while an Executive membership costs $120. The fee you pay for your membership may be more than worth it when you consider the savings you're able to reap on the various items you buy there, from groceries to apparel to household essentials.

But there may come a point when it doesn't make sense to renew your Costco membership. Here are a few signs it may be time to part ways with Costco.

1. You don't use your membership all that often

Maybe you joined Amazon Prime last year and have gotten into the habit of ordering items on the site and having them shipped rather than hitting the store. Or maybe a shiny new Target opened up down the road, and you've been running there frequently instead of making the 15-minute drive to Costco.

If you realize you rarely go to Costco anymore, then it may be time to rethink your membership. However, don't automatically cancel because your Costco visits have declined. Instead, run the numbers.

Perhaps you're now only visiting Costco once every three months. But if you're paying $60 for a membership and are saving $20 each time you go, then paying the fee still makes sense. But if you only see yourself going once every three months and you only save an estimated $10 per visit, then the numbers don't quite work out.

2. Every time you go to Costco, you overspend

Because Costco's inventory is so extensive, it can be hard to control your spending. After all, when you're looking at a great price on everything from clothing to electronics to snacks, it's hard to say no to things that don't really quite fit into your budget.

If you find that pretty much every Costco outing of yours results in you spending money you weren't supposed to, to the point where it's impeding financial goals or leading to debt, then it may be time to cancel your Costco membership. While you might spend a little more at the regular supermarket on things like food, if spending an extra $6 per week saves you from a $20 impulse purchase, it may be worth it.

3. Costco is no longer convenient for you

If you've moved and no longer have easy access to a Costco store, then that alone may be reason enough to cancel your membership. You can tell yourself you'll place orders online and use your membership that way, but the value there isn't as great.

Costco commonly builds the cost of shipping into its online prices. Item prices are often 10% to 20% higher on Costco.com than in stores.

Plus, sometimes, you have to meet an order minimum to get free shipping, such as on items that are part of Costco's two-day delivery program, which require you to spend $75. So what may happen is that you spend extra to get free shipping, thereby shelling out money when you didn't need to.

For many people, keeping a Costco membership is a no-brainer. But if any of these situations apply to you, then you may want to consider not renewing yours.

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.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Target. The Motley Fool has a disclosure policy.