Sell-through allowances (STAs) are sales incentives that help brands align with distributors and retailers on price execution by providing retroactive discounts after a sale. Though often seen as administratively complex and slow to reimburse, STAs can offer key benefits when managed effectively. They give brands visibility into market pricing pressures, help retailers stay competitive, and foster collaboration on promotions. Best practices include automating claims, enabling real-time visibility, customizing programs, and accelerating payouts to reduce friction and support healthy cash flow for both brands and retailers.

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