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US Giant Costco Takes On Kogan, But It Will Cost You Initally

US-based online shopping outfit Costco is continuing to build up its Australian business, opening a new store in Melbourne, and flagging plans for new online operations in Sydney but it will cost you to shop there.

The US Company plans to launch the online service early next year, following completion of a new $78m warehouse at Kemps Creek in western Sydney, according to reports.

People wanting to use its online shopping service will need to fork out an annual “membership fee” – currently $55 for businesses and $60 for “gold star” individuals.

“While some people don’t like the idea of the fee, if you’re buying an expensive item like a TV or computer, you’ll get that back on your first purchase given some of the discounts they offer,” says

It notes that Costco’s US store charges a little more for online purchases, but delivery is included if a user want items shipped the same day – and is not located out in the sticks.

Initially, perhaps, the Aussie services may be limited to Victoria and New South Wales operations.

Recent research from the Melbourne-based Roy Morgan group showed Costco as Australia’s leading discount department store, despite its relatively small coverage outside Melbourne.

It had a customer satisfaction rate of 88.6pc in July, just ahead of rivals Target on 88.5pc and Kmart on 88.4pc, Morgan said.