Costco Structural Packaging Specifications (Aug 2023)

Source: Costco Wholesale Corporation, August 2023 edition. Ingested from Structural_Packaging_Specifications_-_Aug_2023.pdf.

Purpose

These specifications define the structural packaging requirements for all merchandise sold through Costco’s supply chain. The goal is to minimize handling, damage, and cost while ensuring products arrive safely to members. Suppliers are responsible for structural quality; Costco does not give structural approval.

Non-compliant packaging may result in item deletion or a 2% chargeback to reimburse operational costs.

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1. Costco’s Supply Chain Handling

1.1 Merchandise Handling Equipment

Anticipate handling by:

• Quad Forklift / Standard Forklift
• Appliance Clamp (29"L x 48"H)
• Standard Merchandise Clamp (36"L x 36"H or 48"L x 36"H)
• 4-Way Layer Clamp
• Pallet Jack / Quad Electric Pallet Jack

1.2 Inline: Depot to Warehouse

• Depots are cross-dock facilities — no long-term storage.
• Palletized product: offloaded by forklift or EPJ.
• Floor-loaded product: offloaded and palletized by mechanical clamp truck.
• Slip sheets prohibited under floor-loaded product.
• Less-than-full-pallet quantities are mechanically clamped (2-way or 4-way) for layer sorting and outbound mixed pallets.

1.3 Warehouse Handling

• Merchandise displayed on 48" x 40" pallets.
• Pallet loads may be multistacked during receiving and in cooler/freezer storage.
• Replenishment stock stored in steel shelving above the pallet run.
• Empty trays removed and reused on the Front End for members to carry purchases.

1.4 Ecommerce — Big and Bulky (DDC → MDO)

• Most merchandise received floor-loaded; moved via clamp trucks.
• Goods stacked and stored up to one year.
• Stack heights:
  • Cartons ≥ 30" / 76 cm: stacked 15 ft – 25 ft (4.6 m – 7.6 m)
  • Cartons < 30" / 76 cm: stacked up to 15 ft (4.6 m)
• Handling graphics (pictograms) required on all items.

1.5 Ecommerce — Small-Pack (Depot to Member)

• Palletized goods may be stored up to one year and stacked up to 25 ft / 7.6 m.
• Orders floor-loaded into 53' trailers for final-mile small-package delivery.

1.6 Ecommerce — Drop Ship (Supplier to Member)

• Supplier ships directly to member.
• Supplier is responsible for ensuring damage-free arrival, whether in original package or overpack.

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2. Package Engineering & Performance Requirements

2.1 Minimum Package Engineering Requirements

Packaging must withstand, under load, without failing:

• Item-appropriate ISTA pre-shipment tests and carrier/government regulations
• Long-haul transit dynamic load factors (> 500 miles / 804 km)
• Repeated forklift, pallet jack, and up to 2,300 psi / 159 BAR mechanical clamping
• 80%–90% high-humidity conditions
• Minimum 4 weeks storage time
• Cooler/freezer: packaging must withstand refrigerated, moist environments
• Moisture Resistant Adhesive (MRA) required for corrugated in moist/refrigerated environments; recommended for all
• Expanded polystyrene not allowed (exception: minimum 20 kg foam spec if no alternative exists)

Additional Ecommerce Requirements

• Stacking up to 25 ft / 7.6 m, vertically stable without external support
• Up to 2,300 psi clamping 15+ times without damage
• Up to one year storage after receipt
• Stack lean ≤ 3% of total stack height

2.2 Minimum Dynamic Stacking Strength Requirements

Pallet Load Weight (incl. pallet)	Bottom Layer Must Withstand
Under 750 lbs / 340 kg	1,500 lbs / 680 kg
750 lbs / 340 kg or more	2,500 lbs / 1,134 kg

Pallet loads must maintain stacking strength for end-aisle/focus-area merchandising ≥ 6 ft / 1.8 m tall regardless of inbound height.

2.3 Essential Packaging Functions

• Containment, protection, convenience, legal/regulatory compliance
• Orient goods for stacking on largest surface
• Vertical corrugation (fluting) per stacking orientation
• Internal supports (dividers, inserts) as needed

2.4 Performance Testing

• Strongly recommended; reduces damage, rework, returns
• ISTA pre-shipment procedures provide probability assessment
• ISTA testing does not guarantee damage-free shipments
• Supplier remains ultimately responsible

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3. Pallet Load Requirements

3.1 Unit Load & Pallet Load Configuration

• Footprint: 48" x 40" (121.9 cm x 101.6 cm) max; minimum 45" x 37" (111.8 cm x 94 cm)
• Recommended: 47" x 39" (119.4 cm x 99.1 cm)
• No overhang allowed
• Underhang ≤ 3" in either direction
• Maximize pallet area without gaps between units
• Chimney stacking prohibited
• False bottoms prohibited unless requested by Costco
• Use layer pads or grip sheets for small-footprint stability
• Reverse-engineer to ensure proper fit

3.2 Pallet Layout Guidelines

• 48" side is the main shopping side
• Dry items: orient on three or all four sides (preferred), or at minimum one 48" side and one 40" side
• Cooler/freezer items: orient to face one 48" side
• Non-pallet items (deli, books): any direction acceptable
• Column stack for stacking strength
• Center the largest/heaviest portion of multi-box sell units

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4. Unitized Pallet Requirements

4.1 Fully Enclosed Corrugated Containers

• Unit load weight ≤ 2,500 lbs / 1,134 kg
• Packaging must support double stacking in transit (unless shippable weight limits exceeded, then max 58" / 147 cm total height including pallet)
• If distributed in layers, height limited only by inbound equipment
• Secure with stretch film or strapping:
  • Uncolored, minimum 0.79 gauge, wrapped 3 times (or performance equivalent)
  • No metal strapping, metal buckles, stretchable tape, or netting

4.2 Display-Ready Packaging

• Must adhere to all 4.1 conditions
• Use non-skid coated paper sheets to stabilize/tie layers together
• Avoid corrugated sheets between layers; do not use layer caps
• Use layer pad/cap atop unit loads to protect open-top display trays
• Paper/fiber corner posts only if necessary; plastic corner posts prohibited
• Vertically unstable goods must use supports to prevent tipping on sales floor
• Stretch film/strapping must not damage display trays or consumer packaging

4.3 Bags Exceeding 10 lbs / 4.5 kg

• Unit load weight ≤ 2,500 lbs / 1,134 kg
• Pallet load height ≤ 50" / 127 cm (including pallet)
• Layer sheet or tray required between bottom layer and pallet, and atop unit load
• Unit load secured to pallet by one of:
  • A. 1.2 mil one-side-cling, puncture-resistant, uncolored stretch film. Minimum 3 layers around top third and bottom third. Must secure to pallet.
  • B. Corrugated shroud fully enclosing unit load + stretch film top to bottom, secured to pallet.
  • C. Pallet-sized tray, minimum 12" / 30 cm height + stretch film top to bottom, secured to pallet.
• Anticipate settling during shipping; ensure containment at delivery.

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5. Package Design

5.1 Sell Unit Packaging

• Rigid sell units providing stacking strength are ideal
• Gusseted and squared bags (self-standing bags) optimal for display and space use
• Flexible films should be mono-materials that are widely recyclable
• Product can ship without secondary display tray if it is:
  • Self-supporting
  • Unitizable into stable pallet load without damage
  • ≥ 7.5" x 7.5" x 7.5" (19 cm x 19 cm x 19 cm)
  • Able to withstand mechanical clamping if layer-distributed
  • Supports product weight without buckling (independent of corner boards/ancillary components)
• Bottle closures must have adequate stacking strength if self-supporting

5.2 Sell Unit Packaging — Blister

• Preferred: paper card and trapped paper card
• Requires buyer approval: card-and-blister (trapped blister), stretch card (stretch pack)
• Not allowed: blister box, blister card (face seal/skin board/mock clamshell), clamshells (two-piece)
• Not acceptable: rigid PVC, plastic with cracking/sharp edges, clamshells, blister boxes, blister cards
• Exceptions: produce clamshells, unit-dispensing blister cards (pharmacy, gum)

5.3 Sell Unit and Display Tray Integration

Sell Unit Condition	Tray Design Requirement
No structural support (pouches, bags, soft goods)	Tray must carry 100% of load weight
Partially stable, insufficient for full load	Tray + sell unit together provide proper strength
Supports load weight, but < 7.5" cube	Low wall tray for containment
Supports load weight, ≥ 7.5" cube	Refer to Section 5.1 (no tray required)

5.4 Display Trays — Style and Function

• Ship in display tray only if necessary for stability or product protection
• Must be display-ready — no box cutters or labor required to stock
• Tray should support product inside without product blocking dividers
• Not allowed: tear front panels, plastic strapping, tear tape, telescoping lids, tray covers
  • Exception A: telescoping lid/cover allowed if distributed in layer quantities
  • Exception B: individual case quantities may use telescoping lid taped to bottom on two opposing sides
• Maximum weight: 40 lbs / 18 kg per tray (recommended ≤ 25 lbs / 11 kg)

5.5 Display Trays — Design Specifications

• Incorporate anti-nesting feature to prevent upper tray from nesting into lower tray
• Stacking tabs allowed only for produce
• Minimum 3" / 8 cm front panel height, unless:
  • Single stack, height > 5" but ≤ 8": minimum 2" / 5 cm front, other three sides ≥ 4" / 10 cm
  • Single stack, height ≤ 5": exempt from minimum front height
• Product bearing 100% of load may use low tray (must meet front panel minimums)
• Multiple sell units per tray: size to minimum 5 per layer for Front End reuse
• Large 48" x 40" pallet trays allowed only when:
  • ≤ 24 sell units per layer, or
  • Costco deems very high volume (e.g., chips, salty snacks)

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6. Master Case Requirements

6.1 Fully Enclosed Master Cases

• For categories not merchandised on pallets/shelves (apparel, books, service departments: Meat, Bakery, Food Court, Service Deli)
• Maximum weight: 50 lbs / 23 kg for hand-lifted cases; mark with Heavy Weight pictogram if over
• Wax-impregnated boxes allowed only on fully enclosed master cases
• Wax-coated cases that prohibit recycling are not allowed

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7. Display Pallet Guidelines for Special Circumstances

7.1 Master Display with Pop-In Tray Supports

• RSC bottom, 2.25" rollover top flaps, pop-in supports in all four corners
• 44 ECT / 275 lb Mullen, C flute minimum; double wall recommended for heavy tools
• Each displayer banded to pallet so it cannot tip off
• Corrugated shroud may be necessary for transit stability

7.2 Bulk Bin Requirements

• 44 ECT / 275 lb Mullen, C flute minimum; double wall recommended
• U-shaped openings on front (48" side) and two 40" sides; tear panels restricted
• U-shaped openings ≤ 50% of front panel height; full-depth rollovers required
• Inner triangular corner supports in all four corners required
• Corrugate shroud + deep-skirt pallet cap required to fully enclose unit load
• Corner posts and two belly bands recommended

7.3 Wood Pallet Side-Load Crate

• Wood crate with dividers/plastic runners; attached to 48" x 40" wood pallet
• Header label showing assortment; photo sticker/illustration on spine per item
• Plastic strap handle or reinforced hand cutout per item

7.4 Metal Frame Rack Requirements

• Welded/bolted metal frame with diagonal rigidity
• Channels/product supports at top to prevent leaning/top-heavy loads
• Attached to 48" x 40" wood pallet with minimum four 3/16" x 3" lag screws/bolts, 1.5" penetration into wood block

7.5 False-Bottom Display

• Allowed only if directed by buyer; only for OTC Pharmacy
• Corrugated skirt ≤ 26" high (not including pallet)
• Pre-built prior to shipment; supports product during shipping/merchandising
• Display height: 52"–60" (not including pallet)
• Fillers between trays acceptable
• Must be shoppable on three sides unless buyer approval obtained
• Do not wrap/cover individual trays
• Pallets placarded: "False-Bottom Display, Do Not Double Stack"

7.6 Butterfly Skirt Display

• Allowed only if directed by buyer
• Corrugated skirt height: 22" / 55 cm
• Straight base (no cutouts)
• Display height: 52" / 132 cm (not including pallet)
• Fillers between trays acceptable
• Must be shoppable on three sides unless buyer approval obtained

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Addendums

Addendum A – Consumables (Department 12 Candy)

• Date coding required on minimum of two sides and the front of each display tray
• Format: Best Before mm/dd/yy (e.g., 12/16/23)
• Font size: minimum 0.375" / 0.95 cm tall
• Visible date coding welcome on other consumables as well

Addendum B – Department 16 Liquor

• All beer packaging must have functional carry handles or side-access holes
• Sections 5.3 and 5.4 not applicable
• Wine/spirits trays: minimum 50% of bottle height, maximum 65%
• Tray pack dividers/inserts must be removable — no glue
• Dividers should not extend above top edge of tray pack (buyer approval required if they do)
• Corrugated tray pack: HSC, 32 ECT / 200 lb Mullen, B or C flute minimum
• All packaging/labeling must comply with ATF regulations

Addendum C – Departments 17/18 Cooler/Freezer

• Pallet load height may be up to 94" / 239 cm (including pallet) when distributed in layer quantities
• Pallet loads are mechanically clamped for layer distribution
• Exposed front of display packaging may be turned toward center of pallet for shipping protection
• Raw/cut/exposed corrugated edges with single-wall do not perform well; rolled-over edges, double-wall, and wide stacking surfaces recommended
• Bagged-style primary packaging: display-ready trays must support 100% of load-bearing weight of multiple trays stacked up to 52" / 132 cm high (without telescoping lids or layer sheet/caps)
• Wide stacking surfaces required; narrow side panels with center divider insufficient
• Carton-style: pack in open-top HSC horizontal presentation, minimum 40 ECT / 250 lb Mullen, vertical corrugate orientation
• Add 4" / 10 cm deep pallet caps between layers and atop each pallet load
• Display vertically with front panel facing out; allow 0.25" / 0.64 cm finger space at top; no U-shaped cutouts

Addendum D – Department 65 Produce

• Pallet load height may be up to 94" / 239 cm (including pallet) for layer quantity distribution
• Stretch film not required unless specified by buyer
• Cartons oriented to sustain clamping against 48" sides for layer distribution
• Corner posts allowed if needed; minimum three straps over top of corner posts per pallet load
• Exposed front may be turned toward center for shipping protection
• Stacking tabs ≤ 0.75" / 1.9 cm height; corrugate direction vertical on minimum two sides; minimum two-ply tabs (buyer approval required otherwise)
• Must comply with industry Common Footprint Guidelines
• Bulk bins: triple-wall corrugated fiberboard minimum; 4" deep octagonal lid, minimum 32 ECT / 200 lb Mullen, C flute on top of pallet load

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Pallet Specifications (Attachment)

Approved Pallet Brands (North America)

• iGPS, PECO, or CHEP USA Block Pallets required throughout North America
• Applies to all deliveries and locations — Business Centers, Ecommerce, production, packaging sites
• Not accepted: GMA/grade A stringers, CHEP stringers, CHEP Euro, corrugated/paperboard pallets
• Costco does not participate in pallet exchange; does not return pallets to suppliers

Pallet Types by Lane

Lane	Approved Pallet
Domestic (Canada, USA, Mexico)	iGPS, PECO, CHEP Block
Canada-USA border crossing	CHEP Block
Mexico-USA border crossing	CHEP Block, PECO-HT, iGPS
Overseas imports to North America	CHEP USA-HT, or Purpose-Built HT (pre-approved)
Overseas exports from North America	CHEP USA-HT (Europe, Oceania, China); Purpose-Built HT (Japan, Korea, Taiwan via Walk Global)

Purpose-Built Pallets

• Requires advance approval per item number and per destination country
• Valid for one season/rotation only
• Seek new approval each season, for new items, new countries, or different pallet providers
• Email: pallets@costco.com

Inspection & Rejection

Pallets must be:

• Sound & serviceable
• Properly support their load
• Dry & uncontaminated
• Will continue to meet standards while goods remain on pallet

Rejected pallets result in:

• Delivery refusal
• Border entry denial (ISPM 15/HT non-compliance)
• Transfer costs, transportation, detention/demurrage, fumigation, remediation charges

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Contacts & References

Topic	Contact / Link
Structural Packaging Specifications	packaging@costco.com
Handling graphics / pictograms	www.costco.com/packaging-handling-graphics.html
Sustainable packaging	globalpackaging@costco.com
Contract packing (paper card, card-and-blister)	cwip@costco.com
Hazardous materials packaging/labeling	hazmat@costco.com
Pallets / pallet requirements	pallets@costco.com
Load study requests/reviews	NLC@costco.com
Barcode labeling	barcodeguidelines@costco.com
Country of Origin marking	customscompliance@costco.com

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Glossary

• Big and bulky: > 150 lbs, or length + girth > 165", or length > 108"
• Clamp truck: Vehicle with power-operated attachments compressing loads on 2 or 4 sides
• DDC: Direct Distribution Center — receives full truck/container loads, stores until ordered online, ships to MDO
• Depot: Receives full truck/container loads, ships mixed truckloads to Warehouses
• EPJ: Electric pallet jack — motorized, lifts up to 10 pallets simultaneously
• Floor load: Goods delivered not on a pallet
• Handling graphics / pictograms: Symbols for marking special handling/storage requirements
• Master carton: Outer box containing merchandise at largest quantity other than pallet
• MDO: Market Delivery Operation — stages product for final-mile carriers
• Slip sheet: Cardboard sheet used in lieu of wood pallet

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Related Wiki Entries

• Walmart DC Delivery Requirements
• Item Setup Sams Club
• Ice Cream Manufacturing Procurement Plan
• Costco Bagged Confections Display Tray Pallet Guide — candy/chocolate bag-specific requirements extracted from this spec