Sell-through allowances are retroactive sales incentives used by brands to help distributors and retailers protect margins after retail sales. Amid rising price pressures—reported by 83% of FMCG executives and 58% engaged in price wars—these allowances help counteract aggressive discounting between brick-and-mortar and online sellers. Key challenges include lack of pricing visibility, slow claims, and complex processes. Best practices include enabling competitive pricing responses, automating claims, and providing fast payments and clear tracking. Programs must avoid complexity, delayed reimbursements, and one-size-fits-all structures to ensure effectiveness.

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