Pallet Grades Explained: A, B, and C — What's the Difference?

When you buy used pallets, the grade is everything. It tells you what to expect in terms of condition, appearance, and performance. But grading standards can vary from one supplier to the next, which makes it important to know what you're getting.

Here's how we grade pallets at Stockton Pallet Co. — and how those grades translate to real-world performance.

Grade A — Premium / Like New

A Grade A pallet has been fully inspected and repaired to meet the highest standards. It may be a lightly used pallet that needed no repair, or a previously damaged pallet that's been restored with new boards and hardware.

What to expect:

Best for: Export shipments, automated warehouses, retail-facing applications, food and beverage

Grade B — Standard / Good

Grade B pallets are fully functional and structurally sound, but they show more signs of previous use. There may be minor cosmetic imperfections — a darkened board, a small chip, slight warping — but nothing that affects performance.

What to expect:

Best for: Domestic shipping, warehouse storage, general-purpose use

Grade C — Economy

Grade C pallets are the most affordable option. They're functional for basic use but show significant wear. These pallets are ideal for one-way shipments where you don't need the pallet returned, or for storage applications where appearance doesn't matter.

What to expect:

Best for: One-way shipments, storage, non-critical applications, cost-sensitive operations

Choosing the Right Grade

The right grade depends on your application. Overspending on Grade A when Grade C would suffice wastes money. But under-buying — using Grade C pallets in automated racking, for example — can cause jams, damage, and safety issues.

When in doubt, talk to your supplier. A good pallet company will ask about your use case and recommend the appropriate grade rather than just upselling you.