Costco operates on a membership-only warehouse club model, where customers must pay an annual fee to access its stores (physical warehouses and online at Costco.com). This model allows Costco to offer lower prices on bulk goods, Kirkland Signature private-label products, gasoline, services, and more, while generating significant revenue from membership fees rather than high markups on merchandise.
As of 2026 (following a fee increase effective September 1, 2024), Costco offers three main membership types in the U.S. (prices are annual, plus applicable sales tax; fees are similar in Canada but may vary slightly by region):
Gold Star Membership — $65 per year
This is the standard personal membership for individuals and households.
Key features:
- Access to all Costco locations worldwide (in-warehouse and online).
- Includes one free Household Card for another person aged 16+ living at the same address.
- Valid for personal shopping use.
Business Membership — $65 per year
Designed for business owners/operators (requires proof of business, such as a license or other ID).
Key features:
- Allows purchases for business use, resale, and personal use.
- Includes one free Household Card (similar to Gold Star).
- Option to add additional cardholders (Affiliates) for $65 each per year.
- Some business-specific perks, like bulk resale options.
Executive Membership — $130 per year
This is the premium tier (essentially a $65 base + $65 upgrade fee from Gold Star or Business).
Key features:
- All benefits of the base membership (Gold Star or Business equivalent).
- Annual 2% Reward on qualified purchases (e.g., most merchandise at warehouses, Costco.com, and Costco Travel; excludes items like gas, tobacco, alcohol in some states, food court in some cases, membership fees, etc.). The reward is capped (recent sources mention up to $1,250 annually in some contexts, though historically around $750–$1,000 depending on spending). Rewards are issued as a certificate redeemable like cash at Costco.
- Extra savings and perks on select Costco services (e.g., greater discounts on Costco Travel packages).
- Additional 2026-specific perks for Executive Members, including a $10 monthly credit on purchases over $150 (in some reports) and rewards now applying to food court purchases in certain locations.
- Often includes the ability to cancel/refund more flexibly.
All memberships provide:
- Access to exclusive deals, bulk buying, and high-quality products at low margins.
- One free Household Card (for a spouse/domestic partner or household member 16+).
- Worldwide validity at Costco warehouses.
- Satisfaction guarantee on most purchases.
Recent updates (into 2026): No major fee changes since the 2024 increase, but Costco has enhanced perks (especially for Executive Members) like app improvements, food court reward eligibility, and other member-friendly additions to justify the premium tier. The model remains highly successful—membership renewals are strong, and fees contribute substantially to profits while keeping product prices competitive.
For the most precise/current details or to sign up/upgrade, check Costco's official site (costco.com/join-Costco or the membership section) or visit a warehouse, as minor terms can vary by location or change over time.
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