A strong sales report can create a false sense of confidence. Your team may have shipped more cases, expanded distribution, added new retail accounts, and generated record gross sales. On paper, the business appears to be growing. Yet if retailer deductions, chargebacks, returns, allowances, shortages, and compliance fees are quietly reducing what you collect, your financial results may tell a much different story. That's the difference between gross sales and collected reven

The first holiday shipments are still a few weeks away, but the issues that cause retail deductions are already starting to show up. Teams are finalizing forecasts, starting seasonal production, discussing purchase orders, approving packaging, and securing transportation. The choices you make now can reduce deduction risks, but if you miss something, those risks can carry into the busiest shipping season. For CPG suppliers, August is the right time to start managing holiday d

Back-to-school promotions often lead to strong sales. However, they can also result in deductions, pricing claims, shortages, markdowns, and chargebacks that show up after the initial excitement has faded. At that point, what seemed like a successful promotion can look very different. Your sales report might show thousands of cases sold through Walmart, Target, Kroger, and other retailers. But gross sales only reflect what was invoiced. They don’t reveal how much money your c

Every CPG supplier expects some defective merchandise. Products can be damaged, packaging can fail, and consumers occasionally return items because they don’t perform as expected. That doesn't mean every defective deduction is accurate. When defective claims begin rising without a corresponding increase in quality complaints, suppliers should take a closer look. They may be paying for retailer-handling damage, customer returns, expired inventory, store-execution problems, inc

A retailer says it received fewer units than the supplier invoiced. The difference is deducted from the supplier's payment, and the shortage claim appears in accounts receivable. At first glance, the situation seems straightforward. If the retailer didn't receive the product, it shouldn't have to pay for it. The problem is that a shortage deduction doesn't always mean the product wasn't shipped or delivered. It may mean the retailer didn't record it correctly. Receiving error

Sometimes, a retailer’s inventory system shows a product as in stock, but there’s nothing on the shelf for customers to buy. Since the system thinks inventory is available, it won’t trigger a reorder. This situation is called phantom inventory, and it can quietly hurt a supplier’s retail results. Phantom inventory is different from a clear out-of-stock because it can go unnoticed for days or weeks. Suppliers notice sales slowing down, while retailers think they still have sto

In the second half of 2026, many Consumer Packaged Goods (CPG) suppliers are feeling more hopeful. Retailers are looking for fresh ideas, there are more ways to distribute products, and brands that managed inflation, shifting demand, and supply chain problems are now getting more purchase orders. Suppliers have been focused on growing their businesses. Adding more retailers, expanding distribution, and getting larger purchase orders can increase market share and strengthen cu