EUR pallet return becomes relevant when goods have arrived on euro pallets and the invoice has its own line for the pallet deposit. You then have to decide whether to return the pallets to the supplier or whether you can get more out of them some other way. The answer depends on three things: whether the deposit has actually been paid, what the supplier’s terms require and how much of the credit is left after freight and effort.
This article explains what a pallet deposit is, when it is credited, how a return is made and what to do with the pallets the supplier will not take back. It also includes a comparison that shows at a glance which is better in your situation: returning or selling.
In short: A pallet deposit is usually credited only for pallets on which the deposit has been paid, and only when the pallets are undamaged, of the right type and returned in line with the supplier’s terms. Freight and a handling fee may also be deducted from the credit.
It makes sense to sell the other pallets if you do not need them for your own shipments: pallets that came free of charge, broken ones, ones that built up a few at a time, ones past the time limit and mixed batches from different suppliers. A buyer does not ask who the pallet came from, but looks at the type, condition and quantity.
What a pallet deposit is and why it is charged
A pallet deposit is a charge the supplier makes for the pallet on which the goods are delivered. It usually appears as a separate line on the delivery note or invoice, for example as EUR pallet, FIN pallet or pallet charge, and the line shows the number of pallets. The purpose of the deposit is to get the pallets back into circulation: when the customer returns a pallet, the supplier credits an agreed amount for it.
Pallet deposits are used especially by wholesalers and suppliers that send goods as individual pallets, for example suppliers of building materials, cables and industrial supplies. The deposit most often applies to EUR and FIN pallets, but some suppliers also charge it on one-way and half pallets. The deposit on a FIN pallet may be higher than on a EUR pallet, but some suppliers charge the same amount for both.
The deposit is not rent, and it is not the sale price of the pallet. It is a security that is refunded only if the pallet comes back. If the pallets are not returned, the supplier keeps the deposit and you keep the pallets. In practice you have then paid for the pallets, and it makes sense to put them to use: use them for your own shipments or sell them.
Deposit, exchange, rental and sale: four different things
In everyday speech, returning pallets can mean several different arrangements. It is worth telling them apart, because in each one something different happens to the pallet and the money.
| Arrangement | Who owns the pallet | What happens on return | Typical user |
|---|---|---|---|
| Pallet deposit | You keep it if it is not returned | The supplier credits an agreed amount for undamaged pallets | Wholesalers and goods suppliers |
| Pallet exchange | It circulates between the parties | The recipient hands over equivalent pallets in exchange, or the difference is recorded in a pallet balance | Hauliers, industry and retail |
| Pool rental | The pool operator, for example CHEP or LPR | The pallet is returned to the pool and is not sold | Grocery retail |
| Sale | You | The buyer collects the pallets and pays for them, and the original supplier makes no difference | Anyone who accumulates pallets |
This article focuses on the pallet deposit and on what to do with the pallets afterwards. Exchange systems and pool rental are covered in more detail in the article should you buy or rent pallets.
When is the pallet deposit credited?
Suppliers’ terms vary, but the same requirements often recur in published terms of delivery. The pallet deposit is usually credited only when all of the following are met:
- The deposit has been paid. Nothing is credited for pallets delivered free of charge.
- The pallets are undamaged. Usually no credit is paid for a broken pallet.
- The pallets are of the right type. Sometimes only EUR and FIN pallets are accepted for return, even if a deposit was charged on other pallets too.
- The return has been agreed in advance, and the return form has been filled in if the supplier requires one.
- The quantity is sufficient. Some suppliers require a minimum quantity, for example ten pallets at a time.
- The return is made within the time limit set in the supplier’s terms.
In addition, transporting the return usually involves costs: you transport the pallets yourself, order freight under the supplier’s contract, or the freight is deducted from the credit. Many suppliers also charge a separate handling fee. Some suppliers pay the freight themselves when enough pallets are returned in one go.
| Situation | Is the deposit credited? | What to do with the pallets |
|---|---|---|
| Deposit paid, undamaged EUR or FIN pallets, terms met | Yes, according to the terms | Calculate the net credit and compare it with selling |
| The pallets came free of charge | No | Sell |
| The pallet is broken or has got wet | Usually not | Sell: a repairable pallet has value |
| The quantity is below the supplier’s minimum | Usually not, and with a small batch the freight eats up the credit | Sell or build up a bigger batch |
| The return deadline has passed | No | Sell |
| Pallets from several suppliers are mixed together | Only each supplier’s own pallets, agreed separately | Sell the whole batch at once |
| Blue CHEP or red LPR pallet | Does not apply to these | Return to the pool operator |
How much of the deposit do you actually get back?
The deposit and the credit are not always the same amount. Some suppliers state a separate charge price and a lower credit price for a pallet, in which case a return only gets you back part of what you paid. Freight and a handling fee may also be deducted from the credit.
For example, the published terms of delivery of one Finnish wholesaler include a worked example in which, after freight and the handling fee, less than half of the deposit paid is credited for the return of ten EUR pallets. With small batches, the deductions weigh most in relative terms. Some suppliers also take pallets back without any credit at all.
Calculate the net credit before returning
Before you arrange a return, calculate what you will actually get out of it:
Net credit = credit per pallet × number of pallets accepted, minus freight, the handling fee and your own work, that is, sorting, loading and filling in forms.
Compare the result with what you would get by selling the same pallets. When you sell, the buyer collects the pallets, and there are no supplier-specific return terms or return forms. The best solution is often a combination: return to the supplier the pallets for which the terms are easily met, and sell all the others in one collection.
How to return EUR pallets to the supplier
When the deposit has been paid and a return looks worthwhile, handle it step by step. This way you avoid a situation where the pallets have already been transported but the credit is never received.
- Find the pallet lines on your invoices. Check which deliveries had a deposit charged and for how many pallets. Without a paid deposit there is nothing to credit.
- Read the supplier’s return terms. They are usually found in the terms of delivery or the price list. Check the accepted pallet types, the minimum quantity, the time limit, who pays the freight and the handling fee.
- Sort the pallets by supplier and type. Stack each supplier’s EUR and FIN pallets separately and set the broken ones aside.
- Agree on the return and fill in the form. A return is usually agreed in advance with the supplier’s sales or customer service team, and many suppliers require a return form before the pallets are sent.
- Arrange transport. Check whether the pallets are transported under the supplier’s freight contract, whether you transport them yourself or whether the freight is deducted from the credit.
- Ask for a receipt and follow up the credit. Make sure the number of pallets returned is recorded, and check that the credit appears on the next invoice or arrives as a credit note.
When returning is not worth it
In practice, many of the pallets that build up at a company do not meet the return terms. There are five typical situations:
- The pallets came without a deposit, so there is nothing to credit
- Pallets come from many suppliers, and each has its own terms, forms and minimum quantities
- There are too few pallets from any one supplier for a return to pay off after freight
- Some of the pallets are broken or have got wet, and they are not accepted for return
- The pallets are custom-size or something other than EUR and FIN pallets, and the supplier will not accept them
In these situations the pallets are usually saleable goods, not waste. There is constant demand for used EUR and FIN pallets, and repairable pallets also have value. Selling broken pallets is covered in more detail in the article can you sell broken pallets.
Return or sell: a comparison
It is best to decide on returning or selling pallets one batch at a time. The table shows how returning to the supplier and selling differ in practice.
| Factor | Return to the supplier | Sale to Suomen Lavacenter |
|---|---|---|
| Which pallets qualify | Only that supplier’s pallets on which the deposit has been paid | Standard-size used EUR, FIN, one-way, half and forklift pallets and pallet collars, regardless of the supplier |
| Broken pallets | Usually not accepted | Repairable ones are paid for, and the rest can be taken away on the same collection by agreement |
| Quantity | Often a minimum quantity per supplier | All pallets on the same collection, and the bigger the batch, the more worthwhile the collection |
| Transport | You transport them yourself, order freight under the supplier’s contract, or the freight is deducted from the credit | We collect the pallets with our own trucks within our service area |
| Paperwork | Return agreement, form and reconciliation of quantities | Photos, quantities and the collection address are enough for a quote |
| Time limit | As set in the supplier’s terms | No time limit, but a pallet kept dry holds its value |
| Money | Credit according to the terms, after deductions | Quote based on pallet type, condition, quantity and ease of collection, payment after sorting |
If pallets build up continuously from several suppliers, selling is almost always the simpler solution. Returning mainly pays off when a large batch of undamaged pallets with a paid deposit has built up from one supplier and they can be returned without hassle.
How to sell the pallets the supplier will not take back
Selling is simpler than returning, because the buyer is interested in the pallet’s type, condition and quantity, not in who it originally came from. Prepare the batch like this:
- Sort the pallets by type: EUR, FIN, one-way and half pallets and pallet collars in their own stacks
- Separate the broken pallets from the undamaged ones
- Remove plastic wrap and strapping and keep the pallets dry
- Count the quantities by type and take photos of the stacks
- Check the heat treatment stamp on the pallet, or send a photo and we will check it for you
You can send the photos and details directly using the sell pallets form. The photos show us the condition of the batch, and you receive a quote with a breakdown. We collect the pallets with our own trucks within our service area, and on the same visit we pick up both pallets and pallet collars. The pallets are counted and sorted at our warehouse, and payment is made according to the agreed quote. How to read the stamps is explained in the article how to identify a genuine EUR pallet, and the steps of selling and regular collection in the article how to sell your company’s surplus pallets.
Pallets from construction sites and house builds
Pallets arrive at a construction site with blocks, bricks, tiles, insulation and bags of mortar, and a deposit is charged on some of them. By the end of the project there may be dozens of pallets, and their deposits can add up to a significant sum.
When the pallets are EUR or FIN pallets from one supplier and the deposit has been paid, it is worth looking into a return straight away, because the time limit in the terms may run out while the project is still going. Pallets for building materials may, however, be custom-size or one-way pallets. It is worth taking a photo of them and asking whether they can be sold, as this depends on their dimensions and condition. For a construction company with several sites, regular collection is often the easiest way to keep the sites tidy.
If you are a private individual with only a few pallets, the options are covered in the article what to do with old pallets. Collection by a pallet company usually only makes sense for larger batches.
When your company charges a pallet deposit itself
Many companies are on both sides of the deposit: they pay a deposit on incoming pallets and charge one on outgoing pallets. In that case pallets have to be managed in both directions.
- Outgoing deliveries need a constant supply of undamaged EUR and FIN pallets. Used pallets are a more affordable option for this than new ones, as long as the quality level is agreed in advance.
- Pallets returned by customers are not always as good as the ones that went out. Sort the returned pallets and sell on the surplus and poor-condition ones.
- Keep a pallet balance for each supplier and customer, because deposits paid and charged are real money.
The quality levels used to agree on the condition of used pallets are described in the article pallet grades A, B and C. Used EUR and FIN pallets are available from Suomen Lavacenter: see used pallets.
Blue and red pallets must not be sold
A blue CHEP pallet and a red LPR pallet are the property of the pool operator, regardless of whose yard they have ended up in. They must not be sold or disposed of, but returned to the pool operator’s collection. CHEP’s instructions for blue pallets and its collection request can be found on CHEP’s Finnish-language page what can I do with blue pallets. Separate blue and red pallets from the others before returning or selling, so that they do not end up in the wrong place. Pool pallets are covered further in the article what to do with old pallets.
Common mistakes when returning pallets
| Mistake | Consequence | Do this |
|---|---|---|
| Pallets are piled up in the yard for a year | Moisture and time limits eat up the credit | Return or sell one batch at a time and keep the pallets dry |
| Different suppliers’ pallets are in the same stack | Nobody accepts the whole batch for return | Sort by supplier as soon as goods are received |
| The return is not agreed in advance | The pallets are not accepted or the credit is delayed | Fill in the form and wait for confirmation before transport |
| Freight and the handling fee are not taken into account | The credit is smaller than expected | Calculate the net credit before returning |
| Deposits paid are forgotten | The money is never recovered | Keep a pallet balance for each supplier |
| CHEP and LPR pallets go out with the others | Someone else’s property ends up being sold | Separate blue and red pallets |
How storage affects the value of pallets is explained in the article pallet storage.
Do you have pallets piling up that the supplier will not take back? Suomen Lavacenter buys used EUR and FIN pallets, forklift pallets and pallet collars from companies, including broken ones, and collects them with its own trucks within its service area. Tell us the quantity, pallet types and collection address, and we will make you a quote.
Send photos of your pallets, see the page we buy pallets or call +358 29 170 3899.
Summary: EUR pallet return or sale?
A EUR pallet return pays off when the deposit has been paid, the pallets are undamaged and you have so many from one supplier that, after costs, the credit leaves you with more than selling would. It makes sense to sell the other pallets if you do not need them for your own shipments: pallets that came free of charge, broken ones, ones that built up a few at a time and mixed batches from different suppliers. The pallets then leave in one collection, storage space is freed up and you get money for them.
If pallets build up continuously, agree on regular collection. Then you only need to track the pallet deposit for the batches where a return really pays off.
- How to sell your company’s surplus pallets
- What to do with old pallets
- Should you buy or rent pallets?
- Can you sell broken pallets?
- Pallet grades A, B and C
- How to sell your company’s surplus pallet collars
Frequently asked questions
What does EUR pallet return mean?
EUR pallet return means that EUR pallets that arrived with deliveries are returned to the supplier and the pallet deposit paid is credited. A credit usually requires that the deposit has been paid, the pallets are undamaged and the return has been agreed in line with the supplier’s terms.
What is a pallet deposit?
A pallet deposit is a charge the supplier makes for the pallet on which the goods are delivered. It appears as a separate line on the invoice or delivery note and is credited when the pallet is returned in line with the supplier’s terms.
Do you always get the deposit back on a EUR pallet?
Not always. The deposit is usually credited only for paid and undamaged pallets, when the return has been agreed and is made within the agreed time. Freight and a handling fee may be deducted from the credit.
How much is the EUR pallet deposit and how much do you get back?
The amount depends on the supplier and the pallet type. The deposit on a FIN pallet may be higher than on a EUR pallet, and the credit may be lower than the deposit charged. The exact amount is shown on the pallet line of the invoice and in the supplier’s price list, and the amount you actually keep only becomes clear after costs.
Is the deposit credited for pallets delivered free of charge?
No. If no deposit was charged for a pallet, the supplier will not credit it either. Pallets that came free of charge are best used for your own shipments or sold.
Can you return a broken pallet?
Usually not, as normally only undamaged pallets are accepted for return. Broken pallets still have value, and repairable pallets can be sold.
Can pallets be returned to a supplier other than the one they came from?
Usually not. A supplier credits the deposit only for pallets on which it charged the deposit itself. It makes sense to sort different suppliers’ pallets separately or sell them as one batch.
Who pays the freight for a return?
That depends on the supplier’s terms. You can transport the pallets yourself or order freight under the supplier’s contract. Sometimes the freight is deducted from the credit. Some suppliers pay the freight when enough pallets are returned in one go.
Should you return or sell pallets?
Returning pays off when you have a large batch of undamaged pallets with a paid deposit from one supplier. Other pallets, such as those that came free of charge, broken ones and those that built up a few at a time, are usually better sold.
Does Suomen Lavacenter buy pallets that the supplier will not take back?
Yes. Suomen Lavacenter buys used EUR and FIN pallets, forklift pallets and pallet collars from companies, including broken ones, and collects them with its own trucks within its service area. The original supplier of the pallets makes no difference.
What should I do with block and brick pallets after a building project?
If the deposit has been paid and the pallets are undamaged EUR or FIN pallets, check with the supplier about a return as soon as possible. For custom-size pallets, take photos and ask a buyer whether they can be sold.
Can a CHEP pallet be returned to the supplier or sold?
No. Blue CHEP pallets and red LPR pallets are the property of the pool operator and are returned to the pool operator’s collection. They must not be sold or disposed of.
What is the difference between a pallet deposit and pallet exchange?
With a pallet deposit, the supplier credits a sum of money when the pallet is returned. With pallet exchange, the recipient hands over equivalent pallets in exchange, or the difference is recorded in a pallet balance that is settled later.
How do I get a quote for my pallets?
Sort the pallets by type, count the quantities and take photos of the stacks. You can send the photos and details using Suomen Lavacenter’s sell pallets form. You can also call +358 29 170 3899. You will receive a quote with a breakdown.
