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Costco Pallet Height Requirements

Updated: 2 days ago

By The Costco Packaging Guys — About Us/ LinkedIn


If you're selling at Costco — or trying to get there — understanding pallet height requirements isn't optional. Its also not very clearly laid out in Costco Structural Packaging Specifications


What this article covers: Costco's pallet height requirements vary by depot type — Dry, Wet, and OTC — and getting them wrong means rejected shipments, expensive re-work, or worse, a conversation you don't want to have with your buyer. This guide breaks down the maximum pallet heights by department, explains why Costco's cross-dock system demands such precision, and walks through the structural and testing requirements your packaging team needs to know before your first PO hits.


pallet height requirements and specs.  "Complete Guide"

Costco's supply chain is one of the most precise, high-speed logistics operations in retail, and pallet specifications sit at the center of it. Its frankly how Costco's operating costs stay so remarkably low — with SG&A expenses of only around 9.82% of sales — Costco's supply chain strategy is built around minimizing product "touches."


The core idea is the "no fingerprints" philosophy: every time a human touches a case of merchandise between the manufacturer and the store shelf, it adds cost.


Costco minimizes these touches by routing goods through cross-dock depots, moving full pallets directly to warehouse, so the first time a Costco employee touches a product is often at the cash register.


There are 15 primary depot locations across the country, each split between Dry (non-refrigerated) and Wet (refrigerated) operations. Pallet heights and handling are different pending your items path through the Depot
Diagram illustrating cross-docking at Costco Depots. Inbound and outbound trucks are shown, with sorted goods inbound and outbound through cross dock

All goods shipped to Costco must be on 48" x 40" x 5.5" block pallets. Period.

Costco requires the use of pooled (rented) pallets from one of three approved providers:

  • CHEP

  • PECO

  • iGPS

These are 4-way entry block pallets, which enable the mechanical handling and mixed-load stacking that Costco's cross-dock system depends on. Exceptions for purpose-built pallets are very rare and reserved only for genuinely oversized goods.


Pallet Height Requirements by Department


Here is a breakdown by department. Notice how th

Costco Pallet Height Requirements  by department
Pallet height requirements for Costco's Dry, Wet, and OTC Depots, detailing stacking methods and maximum pallet heights for various product categories.

In all cases: height measurements include the pallet itself.

Costco's Loadable Dimensions Guide can be found on our Specifications page:


Product type

Clamped at depot?

Stack mode (supplier → depot)

Max pallet height

Refrigerated

No

Double-stacked

46″

Non-refrigerated

No

Double-stacked

52″

Non-refrigerated

No

Single-stacked

58″

Refrigerated

No

Single-stacked

58″

Refrigerated

Yes

Single-stacked

92″

Non-refrigerated

Yes

Single-stacked

104″


Pallets in Dry Depot (Non-Refrigerated) — HABA, Electronics, Sundries

For dry goods categories (HABA/D20, Dry Grocery/D13, Electronics/D19)


These pallets generally ship as feature pallet displays — intact from dock to depot to club. They are not broken down during the distribution process. During receiving at the club, pallets will be multi-stacked.


Pallets ship double-stacked to the warehouse at a maximum of 52" tall (including pallet). Single-stacked pallets may reach 58". If product is clamped at the depot for the club floor, the combined stack height can reach 104".


A cap and v-boards are needed to create the full shipping system. Shrouds are often used but not strictly required.


Pallets in Wet Depot (Refrigerated) — Cooler, Deli and Frozen

Refrigerated pallets — Cooler (D17), Deli (D19), and Frozen (D18)


These pallets are generally distributed in layer quantities and need to be designed to support mechanical clamping and mixed loads. This is a unique structural challenge for packaging (up to 2.300 psi of force).



Forklifts with 2-way and 4-way clamping. Diagram shows pallet dimensions and labeling for clubs.

Clamping happens in two configurations: 2-way clamping and 4-way clamping, with mixed pallet loads going outbound directly to clubs.


Pallets ship double-stacked at a maximum of 46". Product clamped at the depot for the club floor can reach 92".

  • Mechanical clamping at up to 2,300 psi / 159 BAR.

  • Moisture Resistant Adhesive (MRA) is required for all corrugated packaging in wet categories

  • For folding cartons, SUS (Sustainable Unbleached Sulfate) board is recommended

  • Compression and ship/clamp testing is strongly recommended before finalizing your packaging

  • HSC (half-slotted container) style top covers are most commonly used in these departments

  • no chimney or pinwheel stacking is permitted. These stacking patterns create instability under clamping pressure and are explicitly prohibited.


Dry (Non-Refrigerated) — OTC

These pallets are generally distributed in layer quantities and need to be designed to support mechanical clamping similar to Wet items but through the Dry depot. Some have promotional opportunities that should be treated as Feature pallets similar to HABA. Lots of nuance here and needs to be carefully reviewed with the buying team.


Product clamped at the depot for the club floor can reach 104".


Pallet height requirements aren't glamorous. But they are the kind of thing that separates suppliers who scale with Costco.


Costco's entire supply chain is engineered around the assumption that your pallet arrives ready — the right height, the right stacking method, the right materials. When it does, product flows from your facility to a Costco club floor with minimal human intervention.


If you have questions about your specific department or depot routing, reach out — we're happy to dig into the details with you.


Cheers,

TCPG


FAQ

Q: Do pallet height limits include the pallet itself? Yes. All height measurements are inclusive of the pallet. Your 5.5" block pallet counts toward your limit.

Q: What pallets does Costco accept? Costco requires 48" x 40" x 5.5" block pallets from one of three approved pooled pallet providers: CHEP, PECO, or iGPS. Purpose-built pallet exceptions are extremely rare.

Q: My product is in the Dry depot — does it get clamped? Most dry goods (HABA, Electronics) ship as intact feature pallet displays and are never clamped. However, some Dry Grocery (D13) items are clamped at the depot before going to the club floor, which changes your height requirement to 104". OTC also routes through the dry depot but is distributed in layer quantities and clamped — similar to wet. Always confirm your handling method with your buyer.

Q: What is the difference between double-stacked and clamped height limits? Double-stacking refers to how pallets are loaded onto trailers for transport — two pallets high. The height limit applies to each individual pallet so they can safely stack. Clamped height refers to the finished pallet on the club floor after layers from multiple pallets have been combined — that's why the numbers roughly double (52" → 104", 46" → 92").

Q: What is MRA and do I need it? Moisture Resistant Adhesive is a treatment applied to corrugated packaging that prevents delamination under refrigerated conditions. It is required for all corrugated used in Wet depot categories (Cooler, Deli, Frozen). If your packaging uses a folding carton in these departments, SUS board is recommended instead.

Q: What is chimney or pinwheel stacking and why is it banned? These are stacking patterns where cases are offset or rotated — common in some retail settings for stability. At Costco's wet depot, they create weak points under mechanical clamping pressure and are explicitly prohibited.

Q: How do I know if my packaging can handle clamping? It needs to be tested. Compression testing and ship/clamp testing are strongly recommended before you finalize packaging for any wet or OTC category. Don't assume — clamp force reaches up to 2,300 psi / 159 BAR.

Q: What if I'm in OTC — is that wet or dry? OTC routes through the dry depot but is handled more like wet: distributed in layer quantities, clamped, 104" max club floor height. Some OTC items also have promotional feature pallet opportunities. This one has a lot of nuance — review your specific setup with your buying team.



 
 
 

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This site is for Costco packaging geeks only. 

michael@goberkley.com

619-931-3003

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