Building Pallets for Profit

Allie Coutts
May 13, 2025
5 min read

Building Pallets for Profit: A Simple Guide to Turning Scrap Wood into Serious Income

If you're the kind of person who enjoys working with your hands, likes the smell of fresh-cut wood, and wouldn’t mind turning a garage project into a profitable side hustle, building pallets for profit could be your next big move.

In today's world of e-commerce, logistics, and supply chains, pallets are everywhere — but many companies are short on time, labor, or resources to build and repair them. That’s where you can step in. With minimal startup costs and growing demand, building pallets from scratch or refurbishing used ones has become a viable, scalable income stream for everyday entrepreneurs.

Let’s break down how it works, what you need to get started, and how much money you can realistically make building pallets for profit.

What Are Shipping Pallets and Why Are They in Demand?

Pallets are flat transport structures that support goods in a stable fashion while being lifted by forklifts, pallet jacks, or conveyors. They’re an essential part of global logistics — used in over 95% of U.S. commerce according to Modern Materials Handling.

Due to the explosion in e-commerce and ongoing supply chain disruptions, many companies are rethinking how they source pallets. New and recycled pallets are in high demand, especially from smaller businesses and warehouses that don’t buy in bulk. This is where pallet builders can carve out a niche.

3 Ways to Make Money with Pallets

1. Build New Pallets from Scratch

This is the most straightforward path — buying raw lumber (or getting scrap wood for free), cutting it to size, and assembling standard 48"x40" pallets.

Profit margins vary depending on your material costs and labor, but builders can earn $5–$15 per pallet, with some businesses churning out hundreds per week. Bulk buyers like distribution centers, farms, and local manufacturers are often willing to pay for reliable suppliers.

💡 Pro tip: Use a free pallet design tool to optimize your builds and meet standard industry specs.

2. Recycle or Repair Used Pallets

Many warehouses discard broken pallets even when they’re mostly usable. You can collect them (often for free), repair or reinforce them, and resell them at a profit. Recycled pallets sell for $4–$8 each, and the repair process can be completed with basic tools and minimal effort.

Check platforms like Recycled Materials Market to find and list pallets locally.

3. Sell Dismantled Wood or Custom Projects

Not every pallet needs to be rebuilt — some can be torn down for scrap lumber and repurposed into custom-sized pallets or DIY projects like furniture, garden beds, or fencing. Niche marketplaces like Etsy and Facebook Marketplace are full of buyers willing to pay for rustic wood decor or raw pallet boards.

What You’ll Need to Get Started

Here’s a basic setup checklist to launch your pallet-building hustle:

🛠 Tools:

  • Circular or table saw
  • Nail gun or hammer
  • Crowbar or pallet dismantler
  • Safety gear (gloves, goggles, ear protection)

🪵 Materials:

🚚 Transportation:

You’ll need a way to move pallets — even a used trailer or pickup truck will work. Pallets are bulky but lightweight, and being able to deliver them increases your value.

Where to Sell Pallets

Start locally. Businesses that frequently need pallets include:

  • Warehouses and fulfillment centers
  • Farms and agricultural distributors
  • Construction companies
  • Landscaping supply businesses
  • Small manufacturers

Use directories like Thomasnet or Craigslist Business Section to find buyers.

Also, consider becoming a supplier for pallet brokerage networks like Kamps Pallets or 48forty Solutions, both of which purchase pallets from independent builders and recyclers.

How Much Can You Make Building Pallets for Profit?

The earning potential depends on your scale, effort, and supply chain. Here's a rough breakdown:

ActivityEstimated ProfitPallets per DayMonthly IncomeRepairing pallets$4–$6/pallet20–50$2,000–$6,000Building new pallets$5–$15/pallet10–30$1,500–$9,000Selling dismantled woodVaries—$500–$2,000

Some individuals have scaled into six-figure pallet businesses, such as the story behind The Pallet Guy on YouTube, who documents real sales and repair operations.

Tips to Scale Your Pallet Hustle

  • Go where the pallets are. Visit industrial parks, hardware stores, or warehouse districts to find leads.
  • Build recurring clients. Offer weekly pickups or restocks to local businesses.
  • Automate what you can. As you grow, consider investing in pneumatic nailers, automated saws, or even hiring help.
  • Market your services. Set up a simple Google Business Profile and use signage on your truck or trailer.

Challenges to Watch Out For

  • Wood prices fluctuate, especially with inflation and supply chain issues. Keep tabs on your margins.
  • Manual labor is real. Pallet work is physical, so be mindful of burnout or injury.
  • Zoning and permits. Some areas may regulate woodworking or outdoor pallet storage — check with your local municipality.

Conclusion: Is Building Pallets for Profit Worth It?

Absolutely — if you’re motivated, resourceful, and willing to hustle. Whether you want a weekend side gig or a full-blown pallet business, the barrier to entry is low and the demand remains steady. You won’t need a fancy storefront or a massive investment — just tools, wood, and hustle.

Written By

Allie Coutts

Content Specialist

Earn up to $50/hr
Now hiring Sharetown reps nationwide.