Apr 07, 2022

Retail Rebate Management Explained

Retail Rebate Management Explained

The sale of goods to consumers may appear simple on the surface, but when you delve down deeper into the processes involved in sourcing products, negotiations between buyers and suppliers, contract handling and rebate claims and payments, the truth is there is a whole lot more to retail rebate management than meets the eye.

In the industry, it is a common practice for retailers to return unsold items at the end of the season to the manufacturer and obtain partial refunds. This is called a sale or return agreement and is a type of rebate. Rebates are a common mechanism for a manufacturer to encourage a retailer to increase their order quantity, and they come in multiple types used up and down the supply chain.

However, it is suggested that a manufacturer should offer “scan back” rebate programmes, in which the retailer receives rebates based on actual sales rather than order size, to ensure that the rebate value is passed on to customers. Here are some examples of popular sales-based “scan back” rebate programmes that are used in retail:


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