How Pallets Actually Work (And Why It Matters for Your Costs)

Most freight in North America moves on standard 48x40 inch pallets. It's just how the system works — warehouses are set up for them, trucks are built to fit them, and basically everyone expects them. If you're shipping more than a few boxes at a time, you're probably using pallets too, whether you realize it or not.

The thing is, pallets are a fixed size, and your boxes might not be. If your boxes don't divide neatly into that 48x40 space, you end up with gaps. And gaps mean you're paying to ship empty space.

The Math

Let's say you're using boxes that are 14 inches wide. If you try to fit those onto a 40-inch side of the pallet, you can fit two boxes (28 inches) with 12 inches left over. That 12 inches is just wasted — you can't fit another box there, so it's dead space.

Now, if your boxes were 13.3 inches wide instead, you could fit three across (39.9 inches). That's 50% more product on the same pallet.

This is why people talk about "pallet-friendly" box sizes. It's not some abstract thing — it's just making sure your boxes divide evenly into 48 or 40 inches (or both, if you're lucky).

Common Sizes That Work

Here are some box dimensions that fit well on standard pallets:

• 16 x 20 inches: Fits 6 per layer (3 wide x 2 deep)
• 12 x 10 inches: Fits 16 per layer (4 wide x 4 deep)
• 24 x 16 inches: Fits 4 per layer (2 wide x 2 deep)

These aren't the only sizes that work, but they're a good starting point. The key is to do the math for your specific product and see what fits best.

Height Matters Too

Most pallets stack to around 48-60 inches tall, depending on what you're shipping and what the warehouse or carrier allows. So you want your box height to divide evenly into that range too.

If your boxes are 6 inches tall, you can stack 8 layers (48 inches total). If they're 7 inches tall, you can only fit 6 layers comfortably (42 inches). That extra inch might not seem like much, but it costs you two full layers of product.

Why This Matters for Costs

Shipping companies charge based on either weight or volume, whichever costs more for them. If you're leaving gaps on your pallets, you're paying for volume you're not using. And if you're using more pallets than you need to, that's more weight and more handling fees.

I've seen cases where people were using 15 pallets for a shipment that could have fit on 12, just because their box sizes didn't stack efficiently. That's paying 25% more in freight for no reason.

What You Can Do

If you're about to order custom boxes, or if you have some flexibility in your box size, it's worth spending a few minutes to check how they'll fit on a pallet. You don't need fancy software for this — just divide your box dimensions into 48 and 40, and see if you end up with whole numbers (or close to it).

If you want to see it visually, GoatPaca's pallet visualizer will show you exactly how your boxes stack. You can try different sizes and see which one uses the space best.

It's Not Always Perfect

Sometimes your product size is what it is, and you can't change the box dimensions without compromising protection or fit. That's fine. But if you can adjust it, even by an inch or two, it's usually worth doing. The savings add up fast, especially if you're shipping regularly.