What percentage of deductions are actually invalid?
About 15-20% of all deductions are incorrect. On $1M in deductions, a brand should be recovering around $80K-$150K.
Most brands recover far less than that. One brand with $12.8M in deductions was only disputing $51K. That is a recovery rate under 0.4% on a portfolio where 15-20% is recoverable.
How do I calculate my own recovery potential?
Deductions typically run 25-35% of gross revenue with major distributors. Here is how the math breaks down for a $15M brand:
| Metric | Amount |
|---|---|
| Gross revenue | $15M |
| Total deductions (25% of revenue) | ~$3.75M |
| Shortage/damage deductions (15% of total) | ~$562K |
| Invalid shortages (70% of shortage deductions) | ~$394K |
That is $394K recoverable from shortages alone. Add early payment discount disputes and duplicate slotting charges and the recovery potential grows.
How fast do recovery rates decay?
Every deduction has a dispute window. Miss it and the money is gone.
| Distributor / Program | Dispute Window | Recovery Decay |
|---|---|---|
| Amazon shortage claims | ~30 days practical | 95% within 30 days, 60% at 30-60 days, 25% after 90 days |
| KeHE unloading discrepancy reports | 48 hours | Deduction finalizes after window closes |
| UNFI MCBs | 52 weeks | Generous but still finite |
| Walmart OTIF | 90 days | Fines forfeited after window |
Why do most brands recover so little?
Most brands don't have the resources it takes to follow up, manually check thousands of line items to validate, and chase down the money.
How Revya handles deduction recovery
Revya reviews every deduction regardless of dollar amount — nothing falls through. The system validates promo contracts, shortage claims against shipping documents, flags invalid early payment discounts, and catches duplicate slotting charges automatically. No deduction expires because someone was waiting on a document. See how Revya automates deduction recovery
Frequently Asked Questions
What percentage of CPG deductions are invalid?
About 15-20% of all deductions are incorrect.
How much can I recover from $1M in deductions?
$80K-$150K is the benchmark for brands that dispute systematically.
What is the biggest deduction recovery opportunity?
Shortage deductions. Roughly 70% of shortage claims are invalid, with win rates varying from 63% to 73% depending on the distributor.
How quickly do deduction recovery rates drop?
Amazon shortage claims drop from 95% recovery within 30 days to 25% after 90 days. KeHE unloading discrepancy reports finalize in 48 hours.
Do most CPG brands track their deduction recovery rate?
No. Most brands have no baseline and do not know how much they are leaving on the table.