Sam's Club Takes Away Perk That Gave Them an Advantage Over Costco

Sam's Club, as part of Walmart, emphasizes keeping prices low, but its approach to online services differs from that of Walmart.com and Amazon. While Walmart.com offers free shipping for paid members, Sam's Club does not follow the same model.

Historically, Sam's Club offered free shipping on most items to Plus members, who pay $110 annually. This membership included benefits like free shipping, Curbside Pickup, and early shopping hours, particularly advantageous for business owners.

However, starting August 19, Sam's Club will add shipping charges for Plus members.

Costco, on the other hand, maintains uniform shipping policies across its membership tiers. Gold members pay $60 annually for warehouse access, while Executive members pay $120, gaining 2% cash back on most items up to $1,000 per year.

This additional benefit makes the Executive membership appealing, as reflected in Costco's third-quarter report showing 34.5 million paid Executive members, representing over 46% of total members and 73.1% of worldwide sales.

Sam's Club's Plus membership also includes a 2% cashback reward. However, the introduction of an $8 shipping fee for orders under $50, applicable to both same-day delivery and standard shipping, marks a significant change in its benefits structure.

This new pricing scheme replaces the previously free shipping benefit, altering the value proposition for Plus members.