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Retail Deductions: The Hidden Profit Killer No One Talks About

Writer's picture: Jon AllenJon Allen

Sinking dollar.

Retail suppliers work hard to get products on store shelves, but many don’t realize how much revenue they lose to retail deductions. Chargebacks, shortages, and compliance fines can quietly eat away at profits, often without suppliers' notice.

How Much Are You Losing? Studies show suppliers lose 5-20% of their revenue to deductions. That’s money coming straight out of your bottom line.

Why Do Deductions Happen?

  • Shortages (even if you shipped the full order!)

  • Compliance violations (late deliveries, incorrect packaging, missing paperwork)

  • Unauthorized discounts applied by retailers

  • Damaged goods claims

How to Fight Back

  • Audit Your Invoices Regularly: Retailers make mistakes, and it’s up to you to catch them.

  • Improve Supply Chain Efficiency: Ensure accurate shipments and on-time delivery to avoid unnecessary chargebacks.

  • Use Deduction Recovery Services: Experts can help dispute and recover lost funds, sometimes reclaiming six-figure amounts for suppliers.

Retail deductions aren’t just a cost of doing business—they’re a solvable problem. The more proactive you are, the more revenue you retain.


Woodridge deducti0n recovery solutions are powered by HRG. Need help? Let's talk.

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