Deductions don't just create work; they erode margin. Unfortunately, for many Consumer Goods brands, the scale of the problem is larger than their books reflect.
In UpClear's 2026 Deductions Benchmark Study, 45% of respondents reported invalid deduction rates above 10%. With the majority of brands recovering less than half of what they dispute, this points to a significant source of gross-to-net leakage.
Getting that number under control starts with breaking down where it's coming from. When teams have clear visibility into deduction volume, type, and validity by customer, they can shift their focus from clearing the queue to reducing their costs.
We built a CPG deduction calculator to help you identify where you might be losing revenue, and how you can win it back. Try it now for free!
Trade deductions are amounts retailers and distributors subtract from invoice payments. They typically account for promotions, allowances, compliance fees, or returns. For example, a retailer may take a deduction to offset a promotional discount based on the number of units sold at that price. Some deductions are valid; others are not.
Because unchecked deductions erode profit. UpClear's 2026 Deduction Benchmark Report found that 45% of CPG brands flag 10% or more deductions as invalid— and most recover less than half of what they dispute. At scale, this represents meaningful, recoverable revenue that goes unclaimed without a structured process.
Volume and complexity make deductions hard to stay on top of, leading to invalids slipping through the cracks. Between acquiring backup, cross-referencing information across teams, and submitting disputes to fit retailer requirements, the process can be overwhelming for busy teams. Some retailer trends are also worsening this problem, such as AI-denied disputes and shrinking dispute windows that make it more difficult to fight invalid deductions.
Visibility, structure, and the right balance of automation and human judgment. Some CPG brands have reduced workload by setting up systems to match deductions to promotions and contract, categorize expenses, and centralize data into one place. Automation handles high-volume, rules-based tasks well; complex or nuanced claims still require human expertise.
Estamos aquí para ayudarte.
[email protected]
