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Standards

Costco pallet requirements for suppliers

Reviewed

In short

As documented in 2026, Costco's supplier pallet policy requires pooled block pallets and accepts purpose-built pallets only by exception. A purpose-built whitewood pallet needs a PDS report that includes racking capacity and a user-specified deflection limit, and approval lasts one year. Confirm with the current Costco vendor guide.

On this page
  1. Summary of Costco's pallet policy
  2. Pooled block pallets are the default
  3. Purpose-built pallets by exception
  4. Other requirements in the policy
  5. What this means for a supplier or pallet mill
  6. Questions to settle with your Costco buyer
  7. Related requirements at other buyers
  8. How it shows up on a spec or RFQ
  9. How palletdesign.ai helps

Summary of Costco's pallet policy

This page summarizes Costco's pallet policy as documented in our research in 2026, from the Costco pallet policy PDF distributed through Woodpack Global. Supplier requirements change, so confirm every point with the current Costco vendor guide and your Costco buyer before building pallets.

Pooled block pallets are the default

According to the policy, Costco requires pooled block pallets. In North America the pooled block pallets from CHEP and PECO, and iGPS plastic pallets, are all 48 x 40 in. A pooled pallet is rented from the pool operator rather than bought, so for most suppliers the "pallet requirement" is really a pooling arrangement.

Pooled vs purpose-built at a glance

Pooled block pallet Purpose-built pallet
Status in the policy Required default Exception only
Who owns it Pool operator (rented) Supplier (bought)
Footprint in North America 48 x 40 in As approved
Paperwork Pool account PDS report, renewed yearly

Purpose-built pallets by exception

Costco accepts purpose-built (non-pooled) pallets only by exception. For a purpose-built whitewood pallet, the policy calls for:

Requirement Detail
Design analysis A PDS report
Racking The report must include racking capacity
Deflection A user-specified deflection limit, with the corresponding maximum load
Approval period One year

The policy also observes, in our paraphrase, that many pallet suppliers do not have the software or expertise to produce this analysis. Plan for it early: only PDS-licensed manufacturers can run the report. See what a PDS report contains.

Other requirements in the policy

Topic Requirement as documented
Moisture content Below 19% for containerized shipments
ISPM 15 marks On both long sides of the pallet
Canada to US Heat treatment not required at the border
Mexico to US Heat treatment required
Build method Machine-built
Receiving Non-conforming pallets can be rejected at receiving

What this means for a supplier or pallet mill

  1. Start with pooling. If a pooled block pallet works for your product, that is the expected path.
  2. If you need a purpose-built pallet, find a PDS-licensed manufacturer and ask for a report covering racking and your deflection limit, then submit it for Costco's approval.
  3. Diarize the renewal. Approval lasts one year.
  4. Get the details right at the mill: kiln drying below 19% for containers, ISPM marks on both long sides where required, and machine assembly.

Questions to settle with your Costco buyer

  • Can this item ship on a pooled block pallet, and which pool operator does the receiving depot work with?
  • If not, what makes the exception necessary (product size, weight, configuration), and who approves it?
  • What deflection limit should the PDS report use?
  • Which lanes are containerized, so the 19% moisture limit applies?
  • Which border crossings are involved, so you know whether heat treatment is required?
  • Where should the ISPM 15 and any supplier marks go?

Writing the answers into the RFQ saves a round of revisions with the pallet mill, and it gives the mill what it needs to set up the PDS analysis the first time.

Other large buyers publish their own pallet rules. As documented in our research: Home Depot asks for a PDS analysis or ASTM D1185 test with a 2,800 lb minimum stacked 3 high (see Home Depot pallet requirements); Snap-on sets a safe working load of at least 2,200 lb and recommends ISPM marks on all four sides; and BJ's is reported to cap loads at 2,500 lb and require double-stackable pallets. Confirm each with the current vendor guide.

How it shows up on a spec or RFQ

An RFQ for a Costco purpose-built pallet should state: footprint and construction, "PDS report required, including racking capacity and deflection limit of X in with corresponding maximum load", moisture below 19% if containerized, ISPM 15 HT with marks on both long sides if crossing a border that requires it, and machine-built. The pallet RFQ guide has the full field list.

How palletdesign.ai helps

palletdesign.ai produces the drawing, parts list, nail count, weight and indicative cost you need to brief a manufacturer, and it sets heat treatment and a KD19 moisture option when you ask for them. It does not produce a PDS report, and its capacity figures are indicative beam checks, not the racking rating Costco asks for. Use it to define the design, then have a PDS-licensed mill run the analysis.

Questions

Does Costco accept regular wood pallets?
As documented in 2026, Costco requires pooled block pallets and accepts purpose-built pallets only by exception, with a PDS report. Confirm with the current Costco vendor guide.
What does Costco require in a PDS report?
Racking capacity, plus a user-specified deflection limit and the maximum load at that limit, per the policy as documented in 2026. Approval lasts one year.
What moisture content does Costco require?
Below 19% for containerized shipments, per the policy as documented in 2026. Confirm with the current Costco vendor guide.

Sources