Critical to Costco Packaging Design - How product quantity per pallet is determined.

Costco’s retail model is built on efficiency, pallet presentation, and speed. Unlike traditional retailers that rely on individual shelf stocking, Costco presents directly from full pallets. That means the number of units per pallet isn’t arbitrary or based on 100% on maximizing the available space on the pallet. Quantity is carefully engineered at the intersection of packaging design, logistics, safety, and expected sell through.

Quantity is carefully engineered at the intersection of packaging design, logistics, safety, and expected sell through.

Let's dive into more details on what influences the quantity per pallet in 3 different categories.

Packaging structure considerations

Costco packaging guidelines are the 1st level of consideration

• 48"x 40" pallets

• 52" pallet height (allows double stacking in a trailer)

• 48" in the main side shoppable

• Recommended case weight not exceeding 25 lbs (maximum 40)

Optimizing Costco's 5x5 rule

Product orientation are on a pallet will influence how to make your pallet display as visually stunning as possible. A few things which will effect this:

• End cap vs "under the steel" otherwise known as 1 sided or 3 sided shoppable.

• Primary product graphics and what side best communicates the product.

• Prominent Value Statements

• Showing offering value by presenting every item to the member

Costco buyer guidance

There are numerous reasons that a Costco buyer may direct a specific amount of product per pallet based on:

• Experience (is your product completely new to Costco)

• Expected product sell though and dollar per week metrics

• Product value

All the constraints above push and pull on each other. Always partner with an expert who will ensure you will maximize your sell through.

As with any Costco packaging program, details matter. All the constraints above push and pull on each other. Always partner with someone who will ensure you will maximize your sell through.

Reach out to us with any questions or sign up for a Costco Packaging 101 class.

Until next time.

Cheers!