As a savvy shopper and self-proclaimed "deal detective," I‘m always on the hunt for the best prices on everyday essentials. And while searching for discounts on groceries, clothing, or electronics may be second nature, many people don‘t think to compare prices when it comes to postage stamps. After all, a stamp is a stamp, right? Not quite.
It turns out, like many other products, stamp prices can vary quite a bit depending on where you buy them. And one retailer known for its low prices across the board – Costco – just happens to sell stamps too. But are Costco‘s stamp offerings actually a good deal compared to other options? I dug into the data and analyzed the stamp market to find out.
Costco‘s Stamp Offerings: The Basics
First, let‘s cover exactly what types of stamps you can purchase at Costco. According to Costco‘s website, the retailer sells First-Class Mail Forever stamps issued by the United States Postal Service (USPS). These are the standard stamps used to mail a regular 1 oz. letter within the U.S.
The key feature of Forever stamps is that they never expire – they will always be valid to mail a 1 oz. letter regardless of future postage rate increases. So if you stock up on Forever stamps at today‘s price and rates later go up, you‘ll avoid paying more down the line.
At Costco, the Forever stamps are sold in bundles of 100. The 100 stamps come packaged as five sheets of 20 stamps each. The stamp design depicts the U.S. flag.
Stamp Prices: Costco vs. Competitors
Now let‘s get to the heart of the matter: pricing. How much does that bundle of 100 Forever stamps cost at Costco compared to other retailers? Here‘s a breakdown:
| Retailer | Price for 100 Forever Stamps | Price Per Stamp |
|---|---|---|
| Costco | $54.75 | $0.55 |
| USPS | $58.00 | $0.58 |
| Walmart | $58.00 | $0.58 |
| Target | $58.00 | $0.58 |
| Walgreens | $58.99 | $0.59 |
| CVS | $58.99 | $0.59 |
As the data shows, Costco handily beats competitors‘ prices for Forever stamps, offering a savings of about 5-6% compared to other major retailers. A bundle of 100 stamps costs $54.75 at Costco, while the same 100 stamps purchased directly from the USPS (or retailers like Walmart and Target that sell at face value) would cost $58.00. Drug stores like Walgreens and CVS charge even a tiny bit more at $58.99 per 100 stamps.
This means that by purchasing your stamps in bulk at Costco, you can snag a savings of about $0.03 per stamp. That may not sound like much, but it can really add up over time if you mail a lot of letters. For example, if you mail 500 letters a year (about 10 per week), buying stamps at Costco vs. the Post Office would save you about $15 annually.
Costco‘s Pricing Strategy
You may be wondering, how is Costco able to sell stamps for less than face value when other retailers can‘t? The answer lies in Costco‘s unique business model.
"Costco‘s strategy is to provide their customers with the lowest possible prices on a limited selection of nationally branded and private-label products in a wide range of merchandise categories," explains Chuck Grom, a retail analyst at Gordon Haskett Research Advisors. "They are able to do this by keeping costs down through volume purchasing, efficient distribution, and the elimination of frills."
In other words, by selling items in bulk quantities only to members who pay an annual fee, Costco maintains a lower overhead cost than other retailers. They can then pass those savings on to shoppers in the form of reduced prices.
While most retailers sell stamps at cost as a convenience to customers, Costco deliberately takes a slight loss on stamps in order to reinforce its low-price reputation. "Selling stamps for slightly less than face value is a strategic move for Costco," says Grom. "It‘s a way to demonstrate to members that Costco has the lowest prices, period – even on something as mundane as postage."
Consumer Stamp-Buying Behavior
So if Costco has the best price on stamps, why doesn‘t everyone buy their stamps there? As it turns out, many consumers don‘t give much thought to where they buy stamps at all.
"For the typical consumer, buying stamps is often an afterthought," notes Jack Milgram, a consumer behavior expert and author of the blog Consumer Instincts. "They may buy a book of stamps once or twice a year at most, whenever they happen to need them – maybe when mailing holiday cards or a birthday card. Convenience and immediacy tends to trump price for these occasional purchases."
Indeed, a 2020 survey by the USPS found that 58% of consumers purchase their stamps at the Post Office, likely out of habit or because it‘s seen as the default choice. Grocery stores were the next most popular place to buy stamps according to respondents, with 43% saying they bought stamps there. Only about 8% reported purchasing stamps at a warehouse club like Costco.
For small business owners or anyone who regularly sends a lot of mail though, it‘s definitely worth seeking out the best price on stamps. "If you find yourself needing to replenish your stamp supply frequently, buying stamps at Costco can lead to huge savings over time compared to paying full price at the Post Office or other retailers," advises Milgram.
The Future of Stamps
One factor that could affect stamp prices in the coming years is a decline in overall stamp usage due to digitization. According to USPS data, total mail volume has declined by 33% over the past decade, driven largely by a massive decrease in First-Class Mail. As a result, stamp price increases have become more frequent in recent years to offset lost revenue.
"The boom in online bill pay, e-invitations, and digital greeting cards has definitely taken a toll on stamp sales," says Paul Steidler, a senior fellow at the Lexington Institute and expert on the postal service. "To remain financially viable, the USPS will likely continue to raise stamp prices periodically despite lower usage."
However, this doesn‘t necessarily mean that the gap between Costco‘s stamp price and USPS‘s will grow. Costco‘s ability to offer discounted stamps depends on its agreements with the Postal Service as a licensed stamp vendor. Should the USPS decide to limit such agreements or demand a higher minimum purchase price from partners, Costco may have to adjust accordingly.
It‘s also worth noting that some experts predict a resurgence in stamp popularity in the near future. "We‘ve started to see a renewed interest in letter writing, particularly among younger generations," notes Linda Li, a trends expert at The Future Laboratory consultancy. "Sending physical mail is becoming trendy as an intentional way to connect more meaningfully in our digital age. Stamps could soon be quite in demand." Such a renaissance could potentially lead to greater price stability in the stamp market overall.
Creative Stamp Uses
One way to take advantage of lower-priced stamps (or use up extras you may have lying around) is to get creative with how you use them beyond mailing letters. Here are a few fun ideas:
- Use stamps as a template for an art project. The uniform size and interesting designs can make for cool collages or mixed media pieces.
- Incorporate stamps into your gift wrapping. Stick a few colorful stamps onto solid-colored wrapping paper for an artistic touch.
- Jazz up your snail mail. Even if you‘re mailing something ordinary like a bill, adding a unique or extra stamp can make it feel more special and personal for the recipient.
- Collect stamps as a hobby. Many stamp designs are miniature works of art. See if you can find every stamp in a particular series or theme. You may even be able to sell rare stamps for a profit.
Key Takeaways
Circling back to our original question: yes, stamps are cheaper at Costco compared to other retailers and the Post Office. You‘ll save about 3-5 cents per stamp by purchasing them in a bundle of 100 at Costco. However, you‘ll need to be a paying Costco member to access these savings.
Whether buying stamps at Costco makes sense for you will depend on your typical mailing habits and other shopping preferences. If you send a lot of mail regularly and already shop at Costco, it‘s a no-brainer to stock up on stamps there. If you only need stamps occasionally and don‘t live near a Costco, it may not be worth the extra effort.
Regardless of where you decide to purchase your stamps, one thing is clear: in today‘s digital world, sending physical mail is becoming an increasingly special gesture. So next time you need to mail a letter, take a moment to appreciate the art and history behind the humble postage stamp – and of course, don‘t forget to scout out the best deal. Your wallet (and your lucky mail recipients) will thank you.
