As an e-commerce expert, I know that online grocery delivery services like Instacart have become increasingly popular in recent years, offering convenience and time-saving benefits to busy consumers. However, the question on many people‘s minds is whether Instacart is actually more expensive than traditional in-store shopping.
In this comprehensive guide, I‘ll dive deep into the world of Instacart pricing, exploring the potential markups, delivery fees, and membership options to help you determine if Instacart is the right choice for your grocery budget.
Can You Save Money Using Instacart?
Believe it or not, Instacart can actually help you save money in a few key ways. One of the primary benefits is its ability to curb impulse purchases. When you‘re shopping in-store, it‘s all too easy to toss a few extra items into your cart, only to find that your total has skyrocketed. With Instacart, you can see the running total of your order in real-time, making it easier to stick to your budget.
"I experience this firsthand every time I put together my weekly grocery cart at Aldi, especially for Wednesdays," says Cara Suppa, a freelance writer with over a decade of experience. "The number of times I have taken an unnecessary candy or a treat (or five) out of my cart because I saw it was making me go way over budget is pretty high. It‘s a lot easier to monitor your cart when the total changes right before your eyes!"
Another way Instacart helps its customers save money is through the Instacart Express membership. For just $10 per month or $99 annually, this program offers unlimited free delivery and pickup, as well as reduced service fees. "Basically if your household uses Instacart three times per month or more, you can save by signing up for Instacart Express," Suppa explains. "That is, a $3.99 delivery fee x 3 orders = $12 in delivery fees, whereas you‘re only paying $10 month for Instacart Express."
The flexibility of the Instacart Express membership is also a significant advantage. "One thing I personally love as an Instacart Express member is that if you‘re signed up for the monthly membership, you can cancel at any time, no penalties," Suppa says. "So if your budget changes a little and you need to cut out online grocery shopping, you can cancel it without any issues. And if you‘ve cancelled but want it back, it‘s a breeze to sign up again. Instacart doesn‘t make you jump through hoops either way."
Are Instacart Prices the Same as In-Store?
When it comes to the prices on Instacart, the answer is not a simple yes or no. The retailers, not Instacart, set the prices on their marketplace. This means that some retailers may choose to mark up prices to offset the costs associated with their partnership with Instacart.
"You should be aware that the retailers actually set the prices on their marketplace, not Instacart," Suppa explains. "They may choose to do so in order to offset the costs on their end, which they incur through their partnership with Instacart."
To determine if a retailer has marked up their prices on Instacart, you can look for one of three phrases under the retailer‘s logo on the app: "Higher than in-store prices," "View pricing policy," or "Everyday store prices." The first option indicates that the prices are indeed marked up, while the second means that some items may be marked up, and the third means the prices are the same as in-store.
It‘s important to note that even if a retailer offers "Everyday store prices" on Instacart, the in-store prices can still vary by location. "An NYC CVS on Instacart, therefore, isn‘t going to have the same prices as it would in-store at a Lakewood, NY location," Suppa says. "There are also delivery fees and different service fees that you must pay to use Instacart, and which you obviously do not incur when shopping in-store."
While Instacart prices are often higher than in-store, the convenience and time-saving benefits it provides may be worth the trade-off for some consumers. "Are Instacart prices normally higher than in-store? Yes," Suppa acknowledges. "But for some, the trade-off between that and the service the app provides is worth every penny."
How Much is the Instacart Markup?
If the retailer you‘ve chosen on Instacart has marked up their prices, you can expect to pay between 15 to 24 percent more than you would in-store. "However, some retailers on the app have special partnerships with Instacart and have no need to upcharge," Suppa notes. "Drugstores like Walgreens and CVS are an example, as well as Dollar Tree and Petco."
To provide some additional context on the potential Instacart markup, let‘s look at some real-world data. According to a 2021 study by NBC Los Angeles, the average markup on Instacart was around 15% across various retailers, with some items seeing markups as high as 24%. However, the study also found that certain retailers, like Costco and Aldi, maintained the same prices on Instacart as in-store.
As you can see, the markup can vary quite a bit depending on the retailer, so it‘s important to do your research and compare prices before placing an order on Instacart.
Is Instacart Cheaper if You Pick Up?
One way to save money with Instacart is to opt for pickup instead of delivery. "Instacart is cheaper if you opt for pick-up!" Suppa exclaims. "Not only is the service itself cheaper ($1.99 vs. $3.99 normally), there are no service fees for pickup orders."
Instacart pickup can be an excellent money-saving alternative, as someone else still does the shopping, but you don‘t have to get out of your car. And for Instacart Express members, pickup is often free, even on small orders.
To illustrate the potential savings, let‘s look at a hypothetical scenario. If you were to place a $50 order on Instacart with delivery, you‘d pay the $3.99 delivery fee plus a 5% service fee, which would come out to $5.49 in additional charges. However, if you opted for pickup, you‘d only pay the $1.99 pickup fee, saving you $3.50 on that order.
What‘s Cheaper Than Instacart?
When comparing Instacart to other major grocery delivery services, such as Amazon Fresh and Walmart+, Instacart actually comes out as the most cost-effective option.
"Amazon Fresh is included with Amazon Prime memberships (which cost $139 per year, as of 2022), and offers free delivery with orders over $35," Suppa explains. "Walmart‘s delivery program costs between $7.95 to $9.95 per order or is free for orders over $35 with Walmart+, which costs $12.95 per month or $98 per year."
In contrast, Instacart‘s Express membership is only $10 per month or $99 per year, making it the more budget-friendly choice for regular grocery delivery. "I would say that Instacart is actually the cheapest out of the three grocery delivery services," Suppa concludes. "To use Amazon Fresh you have to shell out $139 per year (or $14.99 per month) for free delivery, whereas with Instacart Express you only pay $10/month or $99/year."
To further illustrate the cost differences, let‘s look at a comparison table:
| Service | Membership Cost | Delivery Fees |
|---|---|---|
| Instacart Express | $10/month or $99/year | $1.99 for pickup, $3.99 for delivery |
| Amazon Fresh | $139/year or $14.99/month | Free for orders over $35 |
| Walmart+ | $12.95/month or $98/year | $7.95 to $9.95 per order, or free for orders over $35 |
As you can see, Instacart Express is the most affordable option, especially if you‘re a frequent online grocery shopper.
Conclusion
While Instacart may have a markup on some items compared to in-store prices, it can still be a cost-effective option for many consumers, especially with the Instacart Express membership. The service‘s ability to curb impulse purchases and provide convenient delivery or pickup options can make it a valuable investment for busy households.
Ultimately, the decision to use Instacart or stick to in-store shopping will depend on your individual needs and preferences. By understanding the potential markups, delivery fees, and membership options, you can make an informed decision that fits your budget and lifestyle. Remember, the key to saving money is being an informed and savvy consumer, no matter where you choose to do your grocery shopping.
As an e-commerce expert, I hope this comprehensive guide has provided you with the insights and data you need to determine if Instacart is the right choice for your grocery budget. Whether you opt for Instacart or continue shopping in-store, I encourage you to always keep an eye on your spending and look for ways to maximize your savings. Happy shopping!