Pallet

What Is a Pallet?

A pallet is the base that bulk inventory sits on. Cartons are stacked on it, wrapped in stretch film and moved as one unit by forklifts or pallet jacks. In the United States, the most common pallet size is 48 by 40 inches.

In warehousing, the word pallet also describes a unit of storage. Many warehouses price storage and receiving by the pallet.

How It Works

Manufacturers and freight forwarders build pallets by stacking master cartons in a stable pattern, keeping heavier boxes on the bottom and staying within the pallet's footprint so nothing hangs over the edge. The load is wrapped and labeled, then shipped by truck or container.

At the warehouse, pallets are unloaded, checked and received. Some pallets are broken down so units can go into pick bins, while others are stored whole in pallet racking as reserve stock. For example, a brand shipping 960 units of a protein powder might send two pallets. One is broken down for picking and the other is stored as reserve.

• Stack heavy cartons on the bottom.
• Keep cartons within the pallet edges.
• Label each pallet with its contents.

Why It Matters for Ecommerce Brands

Palletized freight is usually cheaper and safer to ship than many loose cartons. It also speeds up receiving, because the warehouse can handle many cartons at once.

Pallet storage is also a big part of your fulfillment cost. Knowing how many pallets your inventory fills, and how quickly they sell down, helps you plan inbound shipments and avoid paying to store slow stock.