This document establishes standardized packaging and palletization requirements for specialized product categories at Costco Wholesale, ensuring consistent load stability, product protection, and operational safety across the entire supply chain—from warehouse distribution centers to in-store sales floors. These guidelines are designed to address unique handling challenges for long-handled tools, soft bulk goods, and fragile flat items (e.g., mirrors, framed art), mitigating risks of product damage, load tipping, and workplace incidents during transit, storage, and display. Adherence to these specifications is critical to maintaining Costco’s reputation for quality, efficiency, and customer safety, while aligning with global logistics and retail operations standards.

7.4 Metal Frame Rack Requirements (E.g.: Rugs)

1. Frame Structure & Stability

- Racks must be manufactured with a welded or bolted metal frame engineered to prevent lateral movement of the unit load during transit and in-store display.

- Diagonal rigidity must be integrated into the frame design to ensure structural integrity and prevent rack deformation.

2. Product Securement Design

- Racks must feature channels or product supports at the top to separate, secure, and hold products in place.

- This design requirement eliminates the risk of leaning, top-heavy unit loads that could cause product damage or safety hazards.

3. Pallet Attachment Specifications

- Racks must be securely fastened to a 48" x 40" (121.9 cm x 101.6 cm) wood pallet that fully complies with Costco’s wood pallet requirements (refer to official Pallet Specifications reference pages).

- Attachment must use a minimum of four 3/16" x 3" lag screws/bolts, fastened over the pallet’s corner or side blocks.

- Fasteners must achieve a minimum penetration of 1.5" (3.8 cm) into the wooden block to ensure a permanent, secure connection.

7.5 False-Bottom Display

1. Eligibility & Approval

- This display format is only permitted if explicitly directed by your Costco buyer.

- It is exclusively allowed for over-the-counter (OTC) Pharmacy items.

2. Structural & Height Requirements

- The corrugated skirt height must not exceed 26" (66 cm) (base pallet height is excluded from this measurement).

- The skirt must be pre-built prior to shipment, and must provide adequate structural support for the product above during transit and in-store merchandising.

- Total display height (excluding the base pallet) must be a minimum of 52" (132 cm) and a maximum of 60" (152 cm).

3. Merchandising & Handling Rules

- Fillers between product trays are permitted to achieve the desired overall display height and presentation.

- Individual product trays must not be wrapped or covered.

- The display must be shoppable on three sides (one 48"/121.9 cm side and two 40"/101.6 cm sides), unless written approval for an alternate configuration is obtained from the buyer.

- All pallets using this display format must be placarded with the label: "False-Bottom Display, Do Not Double Stack" to prevent improper handling.

7.6 Butterfly Skirt Display

1. Eligibility & Approval

- This display format is only permitted if explicitly directed by your Costco buyer.

2. Structural & Height Requirements

- The corrugated skirt height must be exactly 22" (55 cm).

- The base must be a straight, solid structure with no cutouts.

- Total display height (excluding the base pallet) must be 52" (132 cm).

3. Merchandising & Handling Rules

- Fillers between product trays are permitted to achieve the desired overall display height and presentation.

- The display must be shoppable on three sides (one 48"/121.9 cm side and two 40"/101.6 cm sides), unless written approval for an alternate configuration is obtained from the buyer.

General Compliance Note

All specifications outlined in this guide are mandatory for all shipments to Costco warehouses. Non-compliant displays or rack structures may result in shipment rejection, return, or additional handling fees. All requirements are subject to Costco’s official in-house specifications and buyer approval.