How to Choose the Right Pallet for Your Business

Choosing the right pallet for your business is a decision that affects everything from shipping costs and warehouse efficiency to product safety and environmental impact. With options ranging from wood and plastic to metal, and conditions from brand-new to economy-grade used, the choices can feel overwhelming. This guide breaks down the key factors to help you make the smartest decision for your operation.

Wood pallets remain the most popular choice for good reason — they are affordable, widely available, easy to repair, and fully recyclable. The standard 48 x 40 inch GMA pallet is compatible with virtually all racking systems, trucks, and forklifts in North America. For most general freight, retail, and grocery applications, used Grade A or Grade B wood pallets offer the best balance of cost and performance. They cost significantly less than new pallets while providing reliable service for multiple shipping cycles.

Plastic pallets are gaining ground in industries that demand superior hygiene, consistency, and durability. They are ideal for pharmaceutical, food processing, and cleanroom environments where contamination risk must be minimized. Plastic pallets are also lighter than wood, which reduces shipping costs, and they last significantly longer — often surviving 10 or more years of continuous use. The higher upfront cost is offset by longevity and lower maintenance requirements over the pallet lifecycle.

Metal pallets, typically made of steel or aluminum, serve a niche but important role in heavy-duty industrial applications. They excel in environments with extreme temperatures, heavy loads, or where fire resistance is critical. Metal pallets have the longest lifespan of any pallet type and are fully recyclable, but their weight and cost make them impractical for most standard shipping and warehousing scenarios.

Beyond material, the grade and condition of your pallets matter enormously. Grade A pallets are in like-new condition with no significant repairs, making them suitable for retail displays and high-value goods. Grade B pallets show some wear and minor repairs but remain structurally sound for standard freight. Grade C pallets are economy-grade — functional but cosmetically imperfect, ideal for one-way shipping or internal warehouse use. Understanding these grades helps you match your pallet spend to your actual needs.