Costco pallet requirements: pooled block pallets and purpose-built exceptions
Costco requires iGPS, PECO or CHEP block pallets throughout North America and refuses GMA/Grade A stringer, CHEP stringer, CHEP Euro and corrugated pallets. Purpose-built pallets need advance approval per item; Costco's published supplement requires them to be designed with PDS.
Costco runs a lean operation: goods stay on the delivery pallet from the receiving dock to the sales floor, overstock sits on that same pallet in open-beam racking above the aisle, and members shop directly off it. So Costco's pallet rules are strict, and they are unusual in two ways. It requires pooled block pallets for almost everything, and when it does allow a custom pallet, it asks for an engineering analysis.
This page summarizes Costco's Structural Packaging Specifications (Section 5, Pallets) in the June 2022 and September 2018 editions and the purpose-built pallet supplement, which are the editions we could read. Costco revises these documents and approvals are item-specific. Confirm current requirements with your Costco buyer and the addresses given in the current specs before you ship.
Costco pallet requirements at a glance
| Requirement | Costco (North America) |
|---|---|
| Required pallets | iGPS, PECO or CHEP USA block pallets |
| Not accepted | GMA/Grade A stringer pallets, CHEP stringers, CHEP Euro, corrugated or paperboard pallets |
| Applies to | All deliveries and locations, including Business Centers, e-commerce, production and packaging sites |
| Other pallets | Purpose-built pallets only with advance approval, per item and destination country |
| Pallet exchange | Costco does not participate and does not return pallets |
| Heat treatment | Not required within North America or Canada–US; required Mexico–US and overseas |
| ISPM 15 mark | Both long sides, fully legible |
| Moisture | Containerized pallets: 19% maximum |
| Inspection | Visual assessment at every delivery |
Why pooled block pallets?
Costco's specs explain the reasoning: pooled block pallets are uniform, full four-way, rack well in open-beam racking and are inspected and repaired by the pooler. Stringer pallets, even Grade A GMA pallets, do not meet that standard for Costco's racking and handling. So a supplier to Costco rents pallets from one of the three poolers:
| Pooler | Pallet | Notes |
|---|---|---|
| CHEP | Blue 48 × 40 in wood block pallet | CHEP USA-HT available for export and some imports |
| PECO | Red 48 × 40 in wood block pallet | PECO-HT available |
| iGPS | Blue 48 × 40 in plastic pallet | Plastic; ISPM 15-exempt |
See pallet pooling for how rental works and what it costs.
Heat treatment and cross-border rules
| Shipment | Required pallet |
|---|---|
| Within Canada, US or Mexico | CHEP (block), PECO or iGPS |
| Canada ↔ US | CHEP (block), PECO or iGPS; HT not required at the border |
| Mexico ↔ US | iGPS, PECO-HT or CHEP USA-HT |
| Overseas imports, unloaded at a non-Costco facility | Deliver already palletized: CHEP USA-HT from overseas, or transfer to iGPS/PECO/CHEP in North America, or approved purpose-built |
| Overseas imports, unloaded by Costco | Floor-loaded (by arrangement), CHEP USA-HT or UK-HT, or approved purpose-built HT pallets |
| Overseas exports from North America | CHEP USA-HT to some regions; approved purpose-built HT pallets to others (the June 2022 edition names Japan, Korea and Taiwan) |
Costco requires ISPM 15 heat treatment (HT) specifically, with marks on both long pallet sides. When pallets travel in containers, their moisture content cannot exceed 19%. See heat-treated pallets and pallet lumber moisture.
Purpose-built pallets
A purpose-built pallet is any pallet not supplied by iGPS, PECO or CHEP, and also any platform or feet used for equipment handling. Costco approves them only for specific reasons:
- Oversized goods that need a custom-sized pallet
- Fixtures or goods that must be bolted or screwed to the pallet
- The pallet is sold to the member with the goods
- The poolers cannot supply pallets (for example, from an overseas location)
Approval rules in the June 2022 edition:
- Approval is required in advance.
- Approvals are specific to each Costco item number and each destination country.
- Approvals are valid for one season or rotation, and only for pallets from the approved source.
- Requests go to the pallet email address given in the current specs.
The PDS requirement
The September 2018 edition of Section 5 states that purpose-built pallets must be solid wood, that "pallet providers must use PDS software", that approvals last one year, and notes that many pallet providers lack the software or expertise to build to Costco's needs. The separate purpose-built pallet supplement says pallets must be designed with PDS (Pallet Design System) software and manufactured accordingly, and that the approval request must include the PDS report.
The June 2022 edition of Section 5 that we reviewed says purpose-built pallets must conform to Costco's "detailed technical specifications" and require approval, and names a pallet network for purpose-built HT pallets. It does not repeat the PDS sentence in the pallet section itself. Treat a PDS report as expected unless Costco tells you otherwise, and confirm with Costco.
Purpose-built technical requirements (supplement)
The purpose-built supplement sets design criteria that a PDS report must demonstrate. Key items:
| Area | Requirement |
|---|---|
| Size | No smaller than 48 × 40 in; oversized pallets no smaller than the unit load |
| Class | 48 × 40 in purpose-built pallets must be stringer construction (block pallets follow a separate block spec) |
| Deck | Double-faced; stringer pallets deckboard style; 48 × 40 flush; block pallets need a perimeter base |
| Entry | Accommodate rider trucks, electric and manual pallet jacks, and forklifts; bottom deck chamfered |
| Stringer pallets | Partial four-way; stringers at least 3 in high; notches at least 1-1/4 in deep and 6 in wide; minimum 3 stringers; no stringer between 3-1/2 and 15 in from center |
| Block pallets | Full four-way; blocks at least 3 in tall; minimum 30 in between outer blocks |
| Materials | New softwood or hardwood lumber, Utility grade or better; no engineered wood or composites; softwood dried, preferably kiln-dried |
| Racking | Racked across the shorter dimension on 34 in spans, 2-beam support |
| Deflection | User-specified deflection limit of 0.5 in; 48 × 40 pallets designed to 2,500 lb maximum load for that limit; custom sizes to the unit load weight |
| Lateral collapse | At least "Good" for stringer pallets |
| Durability | Service life analysis: average handling, medium duty (48 × 40), at least 2 predicted cycles to first repair |
The supplement dates from 2011 with revisions to 2013. Some of its details may have been superseded; check with Costco before designing to it.
Inspection and rejection
Costco visually assesses pallets at every delivery, even if the same pallet was accepted before. Pallets must be sound and serviceable, properly support the load, and be dry and uncontaminated for as long as the goods stay on them. Costco rejects:
- Pallets that fail the visual assessment
- Export pallets without heat treatment
- Purpose-built pallets without prior approval or that do not match the approved specification
- Pallets that appear to be iGPS, PECO or CHEP but have unauthorized modifications or repairs (June 2022)
Goods on rejected pallets are refused, or Costco may transfer them to acceptable pallets at the supplier's cost. The supplier is responsible for costs such as delivery refusal, border denial, third-party re-palletizing, detention, fumigation and remediation charges.
How to spec a compliant pallet for Costco
For most items: open an account with CHEP, PECO or iGPS and ship on their 48 × 40 in block pallets. Nothing to design.
For an approved purpose-built pallet, give your pallet supplier:
| Field | Value |
|---|---|
| Costco item number(s) and unit load weight(s) | From the item agreement |
| Reason for purpose-built | Oversized, bolted fixture, pallet sold with goods, or poolers cannot supply |
| Footprint | 48 × 40 in or the oversized unit load size |
| Class and entry | Stringer, partial four-way, chamfered bottom (or block, full four-way, perimeter base) |
| Lumber | New solid wood, Utility grade or better, KD softwood |
| Racking requirement | Across the shorter dimension, 34 in span, 2 beams |
| Deflection limit | 0.5 in; maximum load for deflection limit ≥ 2,500 lb (48 × 40) or ≥ unit load |
| Analysis | PDS report with deflection limit, lateral collapse, service life analysis |
| Treatment | HT with marks on both long sides if crossing Mexico–US or overseas; ≤ 19% MC in containers |
| Builder | Name, location and email of the manufacturer |
pallet.design can route a purpose-built design to shops that hold PDS licenses. Draw the pallet, note "Costco purpose-built, PDS report required" in the spec, and request quotes. pallet.design is not affiliated with Costco, CHEP, PECO, iGPS or Woodpack Global.
Frequently asked questions
What pallets does Costco accept?
iGPS, PECO or CHEP (US) block pallets throughout North America. Other pallets (purpose-built) only with Costco's advance approval for a specific item and destination.
Does Costco accept GMA stringer pallets?
No. Costco's pallet policy states it does not accept GMA/Grade A stringers, CHEP stringers, CHEP Euro pallets, or corrugated and paperboard pallets.
Does Costco require a PDS report?
For purpose-built pallets, Costco's published purpose-built supplement states pallets must be designed with PDS software and that a PDS report must accompany the approval request. The June 2022 edition of the main pallet section refers to its detailed technical specifications and approval process; confirm the current wording with Costco.
Does Costco return pallets?
No. Costco states it does not participate in pallet exchange and does not return pallets to suppliers or shippers.
Do Costco pallets need to be heat-treated?
Not within Canada, the US or Mexico or across the Canada–US border. HT pallets are required across the Mexico–US border and for overseas imports and exports, with ISPM 15 marks on both long sides.
Sources and references
- Costco Structural Packaging Specifications, North America, Section 5 Pallets, June 2022 edition (Costco Wholesale)
- Costco Structural Packaging Specifications, Section 5 Pallets, September 2018 edition (Costco Wholesale; hosted by Woodpack Global)
- Costco Pallets Supplemental Requirements, 5.2 Whitewood Purpose-Built (Custom) Pallets (Costco Wholesale; hosted by Woodpack Global)
Related
- GuidesPallet pooling: how CHEP, PECO and iGPS rental worksPallet pooling is renting pallets instead of buying them. A pooler such as CHEP (blue), PECO (red) or iGPS (plastic) owns standard 48 × 40 in pallets, issues them to shippers, collects them from receivers, then inspects, repairs and reissues them. You pay fees per use, not a purchase price.
- GuidesCHEP pallets: what the blue pallets are, how rental works, and what to do if you have oneCHEP pallets are the blue pallets rented through CHEP's pool. In North America they are 48 × 40 in (1219 × 1016 mm) wood block pallets CHEP rates at 2,800 lb (1,270 kg). CHEP owns every one and never sells them: if you receive some, keep them apart and request a collection.
- GuidesPECO pallets: the red rental pallets, specs, and how to return themPECO pallets are the red pallets rented through PECO Pallet's pooling network in the US, Canada and Mexico. They are 48 × 40 in (1219 × 1016 mm) wood block pallets that PECO rates at 2,800 lb (1,270 kg). PECO owns them and does not sell them: if you find red PECO pallets, report them to PECO for pickup.
- GlossaryPallet Design System (PDS)The Pallet Design System (PDS) is proprietary wood pallet design and structural analysis software from Woodpack Global (formerly the National Wooden Pallet & Container Association, NWPCA). Licensed pallet manufacturers use it to produce specification sheets, drawings, safe load ratings and service-life estimates.
- TypesBlock pallet: construction, dimensions and usesA block pallet is a wooden pallet whose deck sits on blocks, usually nine arranged 3 × 3, joined by stringerboards. The gaps between blocks give full 4-way entry for both forklifts and pallet jacks. EUR/EPAL, CP and the pooled 48 × 40 in pallets of CHEP and PECO are all block pallets.
- GuidesWalmart pallet requirements: supplier DCs and Walmart Fulfillment ServicesWalmart's supplier standards require 48 × 40 in (1219 × 1016 mm) four-way Grade A pallets: stringer pallets with 7 top and 5 bottom boards on 3 stringers (2,100 lb loaded), 9-block pallets (2,800 lb) or approved pooled pallets. Loads max 96 in (244 cm), no overhang. WFS has its own rules.
- GuidesHeat-treated pallets (HT): what they are, when you need them, and costA heat-treated (HT) pallet's wood core was held at 56 °C (133 °F) for 30 minutes under ISPM 15, then stamped with the IPPC mark and HT. Most countries require it on wood pallets crossing their border. It adds roughly $1–3 per pallet (2026 US estimate) and kills pests; it does not dry the wood.
- GuidesAmazon FBA pallet requirements: size, height, weight, wrap and labelsAmazon FBA calls for 40 × 48 in (1016 × 1219 mm) four-way pallets, at most 72 in (183 cm) tall including the pallet and 1,500 lb (680 kg), in clear stretch wrap with box labels facing out. GMA Grade B or better wood and four pallet labels are widely reported rules. Confirm in Seller Central.
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Last reviewed 2026-09-24. 1,476 words.