Reasons Why Half Pallets are Gaining Popularity with Wholesalers/Retailers

4 March 2018
 Categories: Industrial & Manufacturing, Blog

The wholesale and retail industry has been changing consistently for quite some time now. For instance, the advancement of technology has led to an increase in online stores consequently reducing the number of brick-and-mortar stores. To pallet suppliers, the developments are critical to decision making especially when they affect clients' demands. Traditionally, pallets have been manufactured in 48-inch by 40-inch sizes. However, as wholesalers and retailers adapt to a changing business environment, so do pallets. Half pallets are drawing attention, and this post outlines reasons why suppliers need to provide them to their clients.

Shrinking Size of Retail Stores -- As mentioned earlier, brick-and-mortar stores are reducing in number. However, while this is happening, sales promotion and marketing efforts are on the increase. With the current 48" by 40" pallet sizes, it is challenging for retailers to manage space in their stores. By availing half pallets, suppliers provide retailers with a chance to display all their products without necessarily eating up space in their already small stores. Additionally, although stores are shrinking, labour costs are rising; therefore, retailers need pallets that can be stacked by fewer employees. Due to the reduced size, it is possible to move a significant number of half-sized pallets with minimal labour.

Protection of Products -- Unlike before, the wholesale and retail industry today demands the just-in-time strategy when ordering for products. As such, it is common for a retailer's order to feature half full pallets. With the just-in-time ordering, retailers only order the quantity that is demanded to reduce the number of dead stock. However, while full-sized pallets are best when packed compactly, content tends to sag between the spaces on the base when a pallet is half full. To prevent such damage and still meet quantity needs, retailers prefer pallet suppliers who provide half-sized pallets. The option allows retailers to pack their products to the brim without necessarily worrying about some getting destroyed while in transit.

Direct Consumer Sales -- Wholesalers use go-betweens to move their products to retailers or the final consumer. However, the presence of intermediaries increases the final cost of a product because they too need to make a profit. As a result, most customers opt to buy directly from wholesalers as they look for better value for money and also save on cost. Since they will only sell in smaller quantities, wholesalers and retailers need to offer products in smaller-sized pallets such as a half pallet. Half pallets also allow clients to move different varieties of a particular product.

For more information on wooden pallets, contact your local supplier today.