Report: Nearly Three-Quarters of Retailers Face Hidden Tax Compliance Costs After Black Friday and Cyber Monday

Calgary, Alberta, Canada, June 25, 2026 — According to merchant records companyReachreleased new research, nearly three-quarters (71%) of retailers face unexpected compliance costs after the Black Friday/Cyber Monday (BFCM) peak season. Cross-border sales during the peak period brought businesses into new markets, triggered tax thresholds, and new jurisdictional requirements, despite 96% of businesses saying they entered the last peak season confident they were fully compliant.

This survey of 1,000 retail and SaaS decision-makers in the US and UK reveals a growing disconnect between peak-season revenue and the compliance obligations arising from cross-border commerce requirements. The new data highlights the challenges businesses face when entering new markets, crossing tax thresholds, and triggering new jurisdictional requirements within a short trading window during the BFCM peak period.

BFCM still holds significant growth opportunities, but hidden risk exposure

• 93% of retailers plan to run BFCM campaigns in 2026
• 91% believe BFCM helps attract new customers and enter new markets
• 68% believe BFCM brings significant operational and compliance challenges

Businesses are highly confident before the peak season, but unexpected costs often surface months later

• 96% entered BFCM 2025 confident they were fully compliant
• 71% faced unexpected compliance costs after the BFCM peak season
• 57% said these costs surfaced in Q1 of the following year, while 10% said they did not appear until Q2

Unexpected compliance costs have begun to impact growth plans

• 73% said these costs had a negative financial impact
• 43% said operational workload for internal teams increased as a result

These findings come as retailers prepare for BFCM 2026, with many hoping to reach new customers and expand into international markets through peak-season campaigns. But compliance uncertainty may limit their ambitions.

Even among those businesses without prior compliance experience, one-third (33%) said they would deliberately limit expansion if they began facing these costs. More than half (54%) have already or plan to limit market expansion as a result.

"Every year, BFCM discussions focus on gross revenue," said Sam Ranieri, CEO of Reach. "Retailers who do well know there is a second number—it quietly arrives in Q1, months after revenue has been celebrated."

"BFCM creates tremendous opportunities for retailers, but every new market entered and every threshold crossed can generate compliance obligations that many teams only discover later. Retailers planning for BFCM 2026 need to build infrastructure to manage these responsibilities before costs materialize. Otherwise, peak-season growth can quickly become next year's compliance challenge."

The findings indicate that retailers preparing for BFCM 2026 need to treat compliance readiness as a core part of peak-season planning, rather than a post-hoc reconciliation issue. Despite growing awareness of risks, nearly half (48%) of retailers said they need additional safeguards to protect against unexpected cross-border costs, highlighting that many businesses remain vulnerable as they enter the annual shopping peak.

To view the full research findings, visithere。

About Reach

Reach is a merchant-of-record infrastructure provider that enables brands to sell globally without rebuilding their platform. We handle the complexities of cross-border payments, tax compliance, and fraud management, integrated directly into your existing commerce technology stack. With local acquiring capabilities in over 70 countries and pre-built integrations for major platforms, Reach helps mid-market and enterprise brands expand internationally while maintaining full control over their customer data and technology.