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2026 Industry Report

Why Your Returns & Warranties Problem Is Actually A Covenant Risk You Haven't Quantified

Download the 2026 Report

State of Distributor Returns

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Your Returns & Warranty Problem is a Balance Sheet Threat

Most distributors believe they have a margin problem. The data reveals something more urgent: a returns visibility problem that erodes margins, pressures covenants, and drives customer attrition. In today's higher-rate, tighter-credit environment, returns mismanagement directly threatens your borrowing base and enterprise liquidity.

This 2026 research partnership between Distribution Strategy Group and Continuum analyzes 75 return policies and over 27,000 customer responses to reveal the systematic financial risks you are likely underestimating.

Download the report to:

  • Protect Your Borrowing Base: Learn how returns sitting unprocessed beyond eligibility thresholds actively reduce your collateral value and borrowing capacity.
  • Stop the 100% Write-Offs: Understand how missed vendor return windows convert recoverable credit into total financial loss.
  • Close the 68-Point NPS Gap: Discover why customers who encounter friction in your returns process are 68 points more likely to become active detractors who discourage others from doing business with you.
  • Quantify the Multiplier Effect: See why a common $500K write-off requires $12.5M in new sales to recover, and why you cannot afford to wait another quarter to address it.
  • Benchmark Your Performance: Access the strategic framework and benchmarks needed to assess your exposure and transition from a reactive cost center to a competitive advantage.

The question to ask yourself is if your business can afford the risk of inactions when you know your returns and warranty processes deserves attention.