Costco Pallet Requirements: A Guide to Get Your Product in Costco

Costco Pallet requirements image with a UE Boom pallet display case

Marketing products in stores is an essential part of successfully selling your brand to customers. Eye-catching signs and unique displays can help you attract customers and make your products stand out. When creating displays for stores, you must understand the requirements retailers have for displays and packaging. Many prominent club stores, like Costco and Sam’s Club, have specific guidelines.

Customers love club stores because of their deals and the treasure hunt to find a variety of products. You can practically find anything at your local club store, from large furniture items, groceries, electronic devices, health, personal care and jewelry.

Making a creative display for a club store is an excellent method for advertising your products among the endless aisles and various items you will find inside the warehouse. This guide to creating a successful Costco activation gives insights into club store pellet requirements and other display guidelines that can help boost foot traffic to your products.

Table of Contents:

Why Does Costco Have Pallet Requirements?

Costco Wholesale is an excellent option if you are searching for a warehouse club to place your products in. Costco is a large membership-only big-box store that has locations around the globe, making it one of the largest retailers in the world. They are a popular choice for grocery shopping and carry various products for your home, lifestyle and other products. Consumers can purchase bulk quantities of favorite snacks, new clothing, TVs and furniture all in the same warehouse.

To get your products into Costco, you have to meet their pallet requirements. These stringent standards are in place for several important reasons:

Safety: Pallets need to meet certain specifications to help ensure customer and employee safety. Pallets that are damaged or unstable can cause avoidable but dangerous accidents for customers on the floor. Pallets that do not meet the club’s requirements are especially hazardous to the employees who handle and move them. Costco’s standards for load capacity and pallet condition help minimize the risk of potential accidents.
Efficiency: Costco’s pallet requirements make their floors more organized and efficient. Standardizing the sizes and types of pallets, vendors can use streamlined operations, as it helps ensure that pallets fit correctly in racking systems. It also helps optimize floor layouts and maximize space. All of these factors can also contribute to greater cost savings.
Consistency: Standardized pallets help club stores create a uniform presentation on the sales floor that looks visually pleasing and organized. This consistency can also lend itself to simpler inventory management. Costco prioritizes its positive brand image, and pallet requirements are one way they maintain a smoother, more uniform presentation.
Sustainability: Over the years, Costco has placed a greater emphasis on sustainability and its importance to the brand, even launching Costco’s Sustainability Commitment initiative. It is possible that Costco’s packaging requirements will evolve to align with its eco-friendly efforts, and manufacturers may see more focus on using displays made from recyclable materials.
Compliance: One of the most important reasons Costco implements pallet requirements is to comply with the relevant safety and transportation guidelines, like the International Standards for Phytosanitary Measures No. 15 (ISPM 15). This international standard regulates the treatment of wood packaging materials, like pallets, to prevent the spread of diseases and pests. These regulations may also include requirements set by the Occupational Safety and Health Administration (OSHA) for forklift safety and ergonomics and requirements set by the Consumer Product Safety Commission (CPSC).

The Benefits of Club Store Pallet Displays

Club store pallet displays can be great in-store marketing tools for manufacturers, offering the following benefits:

Visibility: Pallet product displays can be large, allowing you to have a significant footprint on the sales floor. Pallet product displays are an excellent way to make your product more visible in the warehouse environment. With a good display, you can draw customers’ attention far more easily, which can increase brand awareness and drive sales.
High-volume sales: Costco is known for its Volume Sales Program, which allows customers to buy Costco wholesale pallets in bulk. Bulk sales are an excellent offer that benefits product manufacturers and customers who love a good deal. For you, pallet displays help facilitate high-volume sales, which allows you to potentially enjoy greater revenue and larger orders from retailers.
Brand storytelling: Costco allows manufacturers to use pallet skirts. The skirts are usually corrugated coverings that wrap around the bottom of the pallet display. This conceals the pallet to create a more visually pleasing and polished look. However, the greatest benefit of pallet skirts is the valuable space they provide for conveying product information and brand messaging. You can use these skirts for promotional offers, seasonal themes, QR codes, CTAs and other branding opportunities. It is important to note that not all club stores allow skirts and that Sam’s Club does not permit them.
Simplified logistics: Getting your products into a club store is a significant step, and one of the greatest benefits is that the requirements for pre-packaged pallet displays help you get larger orders into stores more efficiently. The standardized setups and requirements help you streamline your logistics as you move large volumes of your product into stores and to customers.

What Are Costco Pallet Requirements?

The requirements for Costco pallets may change at any time, especially as regulations are updated and amended. It is highly important to always contact Costco or any other club store directly to ensure your product packaging and displays meet the most recent standards.

However, these are some of the requirements Costco has previously published for pallets entering their facility:

The pallets must measure 48 inches by 40 inches and have no product overhang.
Pallets must be able to handle 1500 pounds of bottom layer weight when they are loaded with less than 750 pounds.
Costco accepts general-use block pallets from certain manufacturers. Other types of pallets will require approval from Costco before use. This approval process is on a case-by-case basis.
Stringer pallets are not allowed as general-use pallets.
Pallets must have the ability to handle 2500 pounds of the lowest layer weight when they are loaded with more than 750 pounds.
Costco’s pallet height limits require that complete loads cannot surpass 58 inches, including the height of the pallet.
The total load weight of the pallet should not exceed 2500 pounds.
Packaging must comply with the International Safe Transit Association (ISTA) pre-shipment tests 1a and 3e, freight carrier rules and mandatory government regulations.
Packaging must be designed to withstand a minimum of four weeks under the load weight without damage.
Pallets must be engineered to withstand over 500 miles in transit without breaking.

Additionally, Costco has a “no-touch” policy for any products. The policy enables pallets to flow directly into their system without extra handling. It is vital for increasing efficiency while minimizing potential damage. For you as a product manufacturer, this means designing the pallets you will use in such a way that they can reach their end destination, with further handling being necessary.

Consulting with a team member at Costco will help your business ensure it is aware of all relevant standards and can tailor your pallets to meet all regulations comprehensively.

Costco Pallet Inspections

When you deliver pallets to Costco, the Costco team will inspect them, including pallets approved by certain manufacturers. These pallets are visually checked for soundness, load support, cleanliness and floor use serviceability.

Pallets should be in good condition and must show no signs of physical damage. The pallets should not have broken or missing boards, and there must be no wide cracks on the boards.

Additionally, stringers — the parallel wooden boards running between the top and bottom deck boards — must not show any visible cracks or damage. There should also be no long splinters. They should also have no protruding nails, and there should be no attachments glued or stapled directly onto the pallets.

Pallets should be dry and free of any stains or contamination. If a pallet does not meet the visual inspection or other guidelines set by Costco, it will not be approved for use.

If you are a vendor that wants to have your products in Costco, you should understand all of the pallet guidelines and always stay up to date on changes in Costco’s requirements for pallets and pallet displays in their stores.

Costco’s Move to Plastic Pallets

Guidelines for pallets can always change, and Costco has had plans to switch to plastic pallets for several years now. The brand first announced to the public that it intended to move from wood to plastic pallets circa 2019-2020.

Costco hoped to make these changes for several reasons, including a greater focus on sustainability and minimizing waste. Plastic pallets can be reused for many years. Plastic pallets are also lighter than wood but are just as durable.

Though Costco had aimed to complete the transition by the end of 2021, there were several setbacks and challenges, including economic factors and cost concerns. With these challenges, Costco’s initial transition status remains uncertain. Therefore, product manufacturers do not need to comply with any changes related to converting to plastic pallets just yet.

With that said, as a vendor, it is good to keep an eye out for changes in big-box store pallet policies. Staying abreast with the club store’s trends helps you always be prepared to change up your pallet displays.

What Are Sam’s Club Pallet Requirements?

Sam’s Club is a big-box warehouse store that is owned by Walmart. The club store is membership-only for customers and is a go-to location for people searching for great deals on clothing, household items, groceries, and more. Sam’s Club relies on Walmart’s distribution centers and logistics guidelines to support the club store’s supply chain. That means that Sam’s Club pallet requirements are practically the same as those of Walmart. The general pallet requirements for Walmart and Sam’s Club are simple to understand and implement in your pallet product display.

Sam’s Club utilizes grade-A flush, 4-way, non-reversible 40-inch by 48-inch Consumer Brands Association (CBA) pallets or pallets that measure 20 inches by 48 inches. The wooden pallets should be free of knots, have clean saw cuts and be in good condition. The requirements listed for these Sam’s Club pallets are regarding stringer pallets.

Pallets must also meet the following criteria:

Pallets must have a minimum of seven top boards.
Pallets must have a minimum of three stringers.
Pallets must have a minimum of five bottom boards.
Pallets should include spacing that does not exceed four inches between each board.

Sam’s Club has a list of guidelines that these pallets must pass to utilize in their stores. Check out the other requirements that the grade-A CBA pallets must meet before they enter a Sam’s Club facility:

All pallets must have no stains, arrive odorless and be clean.
Pallets must not have any broken boards or boards missing from the bottom or top deck of the pallet.
The stringers on the pallet should have no patches, metal plates or other additional boards.
Pallets cannot have cracks on the boards wider than an eighth of an inch and 15 inches long or longer. However, Sam’s Club may allow
The stringers should not be cracked or broken, including cracks longer than an inch and visible from all sides.
Nails on the pallet should be flush with the surface.
There should be no splinters on the pallet that are longer than three inches.
Pallets should be free of tapered breaks that are deeper than an inch on a 10-inch or longer run.
Partial footings where the stringer connecting to the bottom board is a quarter of an inch in width or length, or the nails are not flush, are not allowed.
You cannot glue or staple Product Displayed Quickly (PDQ) floor stand displays on pallets.
While not specifically listed as a pallet requirement, it is important to note that Sam’s Club, like Costco, supports sustainable practices and mindfully made products. Prioritizing recyclable materials for your pallets and pallet displays can go a long way if you are hoping to get your goods into club stores.

The requirements listed for Sam’s Club are specific to single-use wooden stringer pallets. With previous approval from Sam’s Club, the use of wooden block pallets or pallets made of plastic or other alternative materials may be allowed. It is essential to use the correct type of pallet that Sam’s Club approves of when you create a custom pallet display for your products, making the supply chain process seamless.

Here are some other best practices to consider:

Customers and associates can easily identify your product.
Pallets are easy and quick to open without tools.
Customers can effortlessly remove all varieties of the product from the pallet.
Packaging and display materials are recyclable or reusable.

How Can You Maximize Impact in Club Stores?

Working with club stores is an excellent opportunity for your business because of the high volume of customers they attract. Companies selling consumer packaged goods can find success in this retail channel and notice the competition between products in big-box warehouses. Stationing your product in a vast store among thousands of other items is a big task, and designing an impactful pallet display will help get people to notice your product as they shop around Costco or Sam’s Club.

Entering the retail space of a wholesale store is simple when you tackle the process differently than a traditional retail store. You should handle packaging and design to compete with other products in a large space while complying with the requirements set by the big-box store.

Check out these four ways to maximize your impact as a vendor in a club store:

1. Create an Eye-Catching Display

Your products need to stand out in a club store for customers to consider purchasing. Traditional retail stores will have promotional signs posted all over their interior, but wholesale warehouses are a completely different type of retail. These stores have everything a typical warehouse has, like high ceilings, concrete floors and warehouse racking and shelving. This type of setup is an excellent way to shop if customers want to buy items in bulk or snag great deals because they are shopping from a distributor. You can attract more customers to your products in this large space by making eye-catching pallet displays.

Creating an attention-grabbing pallet display is essential to your success in a club store. You can make an excellent pallet display by following these design tips:

Choose colors that stand out: Incorporate your brand’s signature colors and logos into the design efficiently, so it stands out to customers. Be sure to include contrasting colors to increase the visibility of your display and guide customers to your products.
Create an indoor billboard: Design your packaging to blend together and create a bigger picture that resembles an indoor billboard. Your customers will have something easy to look at and understand from far away.
Include images and icons: Pictures and graphics are some of the best ways to communicate with customers. If you have a logo, image or icon that directly relates to your brand, ensure you include it on your pallet display and packaging.
Take advantage of four-sided branding: Because of the traffic patterns in a club store, your pallet display should relay your message from all sides. Be sure to utilize all sides of your pallet display and packaging to create an advertisement that catches the customer’s attention on any side of the pallet.

2. Make Your Display Retail-Ready

When your pallet of products is delivered to the club store, it goes out on the store floor as-is. That means you will need to make sure your display and packaging is retail-ready to start attracting more customers and sales. You should also ensure that your entire product display arrives safely at the club store by preparing it before it ships out. Using pallet wrap is a helpful way to keep everything secure and contained during the delivery process. Once your pallet arrives, the wholesale store will place it on the floor, and the packaging and display are ready to attract customers with minimal handling from the club store employees.

3. Create Packaging That Tells Your Story

Your designs for pallet displays, primary packaging and secondary packaging should all tell your brand’s story and describe what the product does. In a club store environment, products will often need to sell themselves on their own. That means your designs should tell customers about your product and its appeal quickly and efficiently.

You can help customers learn more about your products and brand by including:

Information about your brand or product
The shape, size, contents and use of the product
The value of your product and potential savings

When designing packaging, especially the display on your pallet, it is essential that you meet the requirements of the club store you are working with. Creating packaging, then finding out the club store will not approve of the materials or other factors, can result in costly changes.

4. Other Considerations

Some other considerations that you can make when creating your packaging and pallet display include:

Innovation: Your packaging needs to sell itself because the employees and other aspects of the club store will not sell it for you. The products in club stores need to stand out to the high number of customers entering the stores daily. Find unique methods in your packaging design to catch customers’ attention.
Sustainability: Club stores are becoming more aware of their environmental footprint and their impact on the planet. Including sustainable packaging and other ecological initiatives can help you stand out to club stores and their customers.
Change: Club stores change up their presentations and freshen up the layout often to keep customers interested. You can keep up with club stores by occasionally switching up your packaging and display design to keep customers interested and attract new customers.

How Can Custom Displays Help Comply With Requirements?

Creating custom pallet displays for your products can help you be successful in a club store. Quality pallet display providers, like Great Northern Instore, have the knowledge and skillset to create superb eye-catching displays that meet top big-box stores’ requirements. Their knowledge of club store pallet guidelines and packaging ensures that the supply chain process runs smoothly and your products are on the floor quickly. Custom displays are created with helpful insight, exceptional design and excellent execution.

Pallet display providers understand the ins and outs of retail in club stores and understand the shopper’s mindset in these stores. They will also have the ability to quality-check all of the printing and fabrication to ensure the displays look great in club stores. As a result, custom pallet display providers can design attention-grabbing displays that meet club store requirements so you can attract more potential customers and increase sales for your business.