A pallet is the structural foundation of a unit load which allows handling and storage efficiencies. Goods or shipping containers are often placed on a pallet secured with strapping, stretch wrap or shrink wrap and shipped. Since its invention in the twentieth century, its use has dramatically supplanted older forms of crating like the wooden box and the wooden barrel, as it works well with modern packaging like corrugated boxes and intermodal containers commonly used for bulk shipping. While most pallets are wooden, pallets can also be made of plastic, metal, paper, and recycled materials.

Pallets make it easier to move heavy stacks. Loads with pallets under them can be hauled by forklift trucks of different sizes, or even by hand-pumped and hand-drawn pallet jacks. Movement is easy on a wide, strong, flat floor: concrete is excellent. The greatest investment needed for economical pallet use is in the construction of commercial or industrial buildings.

Old and discarded wooden pallets can be used in pallet crafts and various furniture pieces. Discarded wooden pallets should not be used for firewood or crafts unless it has been determined that the wood in these pallets has not been treated with wood preservatives, fungicides and/or pesticides. Various pyrethrins and propiconazole are common treatments for wooden pallets. In addition, imported palletized goods are routinely fumigated with highly toxic pesticides. During use, harmful materials or chemicals also may spill on the pallet wood and be absorbed.

Craft publications have advised readers to use pallets to build a skateboarding obstacle called a manual pad, barricades during amateur paintball games, or other sport-related items. Other publications have suggested using pallet wood for small animal cages or fences. Pallet wood has been recycled for use as furniture wood.

The EUR-palletalso Euro-pallet or EPAL-palletis the standard European pallet as specified by the European Pallet Association (EPAL). Pallets conforming to the standardization are eligible for the European Pallet Pool (EPP) -the system allows for an exchange as "pallet for pallet".

With the success of the Euro-pallets, a number of replicas entered the market that used low-quality wood which splintered easily and were prone to mould. So the European railways, which own the trademarks for EUR/EPAL, created a separate standardization body. Globalization has made for a decline of the EUR/EPAL system since the EUR-pallets do not fit well into ISO containers. It is still the most widespread pallet type in the world, with an estimate of 350 to 500 million EUR-pallets being in circulation.[2] One of the advantages is that the 800 mm width fits through normal doors (the most common DIN door type is 850 mm by 2000 mm).

Plastic pallets are often made of new HDPE or recycled PET (drink bottles). They are usually extremely durable, lasting for a hundred trips or more, and resist weathering, rot, chemicals and corrosion. The benefits of plastic pallets over wood pallets include the ability to be easily sanitized, resistance to odor, fire retardancy, longer service life span, durability and better product protection, non-splintering, and lighter weight, thus saving on transportation and labor costs and making them safer and more environmentally friendly.They often stack. Plastic pallets are exempt by inspection for biosafety concerns, and easily sanitize for international shipping. HDPE is impervious to most acids and toxic chemicals clean from them more easily. Some plastic pallets can collapse from plastic creep if used to store heavy loads for long periods.

Plastic pallets cannot easily be repaired, and can be ten times as expensive as hardwood, so they are often used by logistics service providers who can profit from their durability and stackability. The large supply chains have increased the use of plastic pallets as many organisations seek to reduce costs through waste, transport and health & safety.