Costco Packaging Guide

Structural Requirements and Best Practices

Built for the Club Aisle:
Packaging That Wins at Costco

At GreenDot Packaging, we help global brands succeed at retail – and that starts with retailer-specific packaging.

Costco is one of the most demanding. Costco packaging requirements go beyond protection – they demand:

  • Structural strength for stacking and transit

  • Shop-ability right off the pallet

  • Sustainability at every layer

This guide breaks down Costco’s Structural Packaging Specifications and offers practical, engineer-backed advice to help your team design it right the first time.

costco packaging requirements - exclusive pallet
high risk packaging requirements

The High Stakes of Costco Packaging Compliance

Costco’s packaging requirements aren’t just best practices – they’re mandatory safeguards built to protect their supply chain and maintain their cost-to-value proposition for members. Non-compliance can result in serious consequences.

Random performance audits are conducted across their network. If your packaging fails these audits, your item may face:

New items will not be accepted into Costco’s system unless they fully comply with all packaging requirements

Key Packaging Requirements from Costco

To succeed on the warehouse floor, your packaging must meet strict Costco packaging requirements covering structure, display, and sustainability.

  • Packaging must be display-ready upon arrival — no unpacking or assembly by Costco staff.
  • No lids allowed on Costco Floor-Ready Shippers (FRS). Use tear-strip or perforation designs to create clean retail-facing cutaways.
  • All Costco shippers must be stackable. Double stacking (two pallets high) is standard for club environments.
  • Standard Costco pallet size: 48" x 40"
  • Maximum pallet height (including pallet): 60"
  • Maximum weight: 2,800 lbs
  • Corrugated must be strong enough to support full palletized stacking (including double stacking during transit and warehousing).
  • ISTA testing is highly recommended for all floor shippers
  • Packaging must withstand repeated high-pressure clamping up to 2,300 psi
  • Designs should pass the following tests:
    • Vibration
    • Drop
    • Compression
    • Atmospheric conditions (humidity/temperature)
  • Recyclability and material reduction are core Costco goals.
  • Avoid excess inner packaging, plastic trays, and non-recyclable coatings.
  • Use FSC-certified paper and soy-based inks wherever possible.
  • Costco requires packaging to serve as primary marketing and instructional material on the floor — not just protection.
  • Front-facing panel must clearly show:
    • Product image
    • Key benefits
    • Costco item number
  • Avoid cluttered graphics or excessive claims.

Common Pitfalls to Avoid

Mistakes

Solutions

Engineering for the Costco Environment

Handling Requirements

  • Beyond various forklifts and pallet jacks, Costco uses high-pressure clamp trucks (up to 2,300 psi) during distribution and ecommerce operations.

  • Your packaging must withstand repeated clamping without crushing, tearing, or creasing.

  • Clamp orientations:

    • 2-way clamp: Pressure from opposing long sides

    • 4-way clamp: Pressure from all four sides

  • Poorly designed packaging is at high risk of damage, leading to product returns, retailer chargebacks, or item deletion.

clamp forklift costco packaging requirements
4 way layer picker costco packaging requirements
costco packaging requirements - pallet stacking

Extended Storage and Stacking Loads

  • Costco may store pallets for up to 1 year and stack them as high as 25 feet (7.6m).

  • Your packaging must maintain vertical integrity over time under load and humidity conditions.

  • Minimum stacking strength:

    • 1,500 lbs on bottom layer for pallets under 750 lbs total

    • 2,500 lbs on bottom layer for pallets over 750 lbs

  • Although not required, ISTA testing is highly recommended for vibration, compression, and drops.

Prohibited Practices & Materials

costco packaging requirements - no eps foam

EPS Foam

Unless buyer-approved, EPS foam is considered non-sustainable and prone to breakage

no pallet overhang - costco packaging requirements

Pallet Overhang

Overhang is strictly prohibited and may lead to product damage during handling and transit.

no false bottom pallet - costco packaging requirements

False Bottom Pallets

False-bottom designs are not allowed unless explicitly approved by the buyer for specific items.

Sustainability Targets

Costco emphasizes sustainability across all packaging layers:

fsc cardboard sustainable
costco packaging requirements - labeling

Labeling & Regulatory Requirements

All shrouded units and many display trays must feature compliant labeling on the front-facing panel, including:

How GreenDot Can Help

Need support with Costco packaging requirements? With teams across China, Vietnam, and the US, we offer end-to-end solutions to help you meet Costco’s packaging standards with confidence.