After circling the Costco parking lot three times on Saturday morning, I started to think: wouldn't it be better to just order delivery? Then I suddenly remembered that Executive members receive a $10 delivery credit each month.

So today, I'm going to break down whether this credit is truly worth it. To cut to the chase, the conditions are more complicated than I expected.

First, let's clarify the basic facts. This benefit started on June 30, 2025, for Executive members in the U.S. and Canada. This was announced in a joint press release from Costco and Instacart.

The amount is $10 per month, totaling up to $120 if you use it for a full year. Just looking at the numbers, it seems quite appealing.

The problem lies in the conditions. You must place an order of at least $150 for the credit to apply. This is calculated based on the product amount before tax and tip, after any discounts.

Alcohol and prescription co-pays do not count towards the $150 calculation. Those hoping to fill their cart with a few bottles of wine will be disappointed.

Additionally, this credit does not roll over. If you don't use it this month, it simply disappears at the end of the month, and a new one appears on the first of the next month.

There's another confusing aspect. You can use both sameday.costco.com and the Instacart app, but you can only apply it once a month, and only on one of the two. You can't double dip and get $10 from both.

If you link your member number, the credit automatically applies to your cart when you reach $150. It's convenient that you don't need to enter a coupon code or anything like that.

Up to this point, it sounds like a free $10. But the real calculations start now.

Costco's same-day delivery prices are set higher than in-store prices. Costco has stated this directly, explaining that the difference covers delivery and service costs.

The exact difference varies by item and time, so it's hard to pinpoint. So let's make a simple assumption for calculation.

Let's say it's 10% more expensive than in-store. If you order $150 worth of items for delivery, it will cost you $165. You're paying an extra $15 to get back $10.

This means you're actually losing $5, not breaking even. The credit is more like a coupon that reduces part of the delivery fee rather than a true discount.

So does this benefit have no value? Not necessarily. If you're already ordering delivery, the situation changes completely.

For families with two kids where going to the store feels like a battle, those whose commute is complicated by one car, or individuals who struggle to lift heavy items like water or paper towels, this means a guaranteed savings of $10 off their usual expenses.

On the other hand, if you're someone who goes to the store every week, switching to delivery just for this $10 is not advisable. It's like biting the bait and buying the fishing rod.

You also need to consider the Executive upgrade itself. Starting September 1, 2024, Gold Star membership will be $65 annually, while Executive membership will rise to $130. The difference is $65.

Executive members receive 2% back on their in-store purchases as an annual reward, with a maximum limit of $1,250. To make up the $65 difference solely through the 2% reward, you would need to spend $3,250 in a year.

That breaks down to about $270 a month. If your household doesn't spend that much, the Instacart credit of $120 could effectively cover the cost of the upgrade.

However, this only holds true if you actually place delivery orders of over $150 each month. If you only order a few times a year, you might only get $30 to $40 at most.

Here's my guideline: If you already order Costco delivery at least once a month, definitely take advantage of this. If not, don't change your shopping habits just for this credit.

If you plan to use it, there are some tips. Try to consolidate your shopping for the month into one order that exceeds $150. Focus on heavy and bulky items like paper towels and water, as that maximizes the value of delivery.

Also, check alternative product options in advance when ordering. If the item you want is out of stock, the shopper will substitute it with something similar, and if you don't like it, the return process can be cumbersome.

For fresh produce, I believe it's better to pick it out yourself. If you open a box of fruit and find bruised ones at the bottom, that $10 can disappear quickly.

And before you check out, make sure the credit has actually been applied. It's entirely possible to end up with $149 after excluding alcohol.

Personally, I see this as a benefit that adheres to market principles. From Costco's perspective, they're trying to create a habit of delivery, and consumers can use it wisely if they're aware of that.

If I were to do it, I would continue going to the store and only order heavy essentials for delivery during busy months, ensuring I exceed $150. The lesson today is to avoid being lured by a free $10 into spending $30 instead.