Used wooden pallets can be taken to pallet-recycling companies and sold for cash. Pallet-recycling companies are generally located in urban areas or near distribution centers that receive goods on wooden pallets.
In some areas of the United States, cash payments for pallets are not allowed, as a way to safeguard the recycling business from purchasing stolen pallets. Selling to pallet recyclers in these areas requires photo identification along with bank account information in order to receive a payment by check or direct deposit. Recyclers inspect pallets before a payment is made, and sellers are not compensated for oddly-sized pallets with poor construction. Sellers can sell used pallets in ready-to-use condition directly to pallet users, such as small businesses, distribution centers, grocers and retail outlets. Establishing a selling relationship with these types of businesses can lead to greater revenue than selling to a pallet-recycling company.
Used pallets in unusual sizes can still have value to certain types of shippers for specific products. Gathering and selling the odd-sized pallets back to the original supplier for reuse can be a lucrative arrangement. A pallet seller can also invest time in repairing used pallets, which can improve the selling price. Badly damaged pallets are taken without payment and later ground into wood fiber, which is then sold by the recycling company.