June 25, 2026: Nearly three-quarters (71%) of retailers faced unexpected compliance costs after Black Friday / Cyber Monday (BFCM), with peak-season cross-border sales pushing businesses into new markets, tax thresholds and jurisdictional requirements, according to new research from merchant of record company Reach. This comes despite 96% saying they were confident they were fully compliant heading into last year's peak period.
The survey of 1,000 retail and SaaS decision-makers across the United States and United Kingdom reveals a growing disconnect between peak-season revenue and the compliance obligations created by cross-border commerce requirements. The new data sheds light on the challenges businesses face during the peak BFCM season when they enter new markets, cross tax thresholds, and trigger new jurisdictional requirements over a short trading window.
BFCM still provides a moment with major growth opportunities, but creates hidden exposure
- 93% of retailers plan to run BFCM activities in 2026
- 91% agree BFCM helps attract new customers and enter new markets
- 68% agree it creates significant operational and compliance challenges
Confidence is high before BFCM among businesses, but unanticipated costs often arrive months later
- 96% were confident they were fully compliant going into BFCM 2025
- 71% say they have faced unexpected compliance costs after BFCM seasons
- 57% say those costs surfaced in Q1 the following year, while 10% say they did not appear until Q2
Unexpected compliance costs are already shaping growth plans
- 73% say the costs had a negative financial impact
- 43% say they increased operational workload for internal teams
The findings come as retailers prepare for BFCM 2026, with many looking to use peak-season campaigns to reach new customers and expand internationally. But compliance uncertainty could limit ambitions.
Even among those with no prior compliance experience, a third (33%) said they would deliberately limit expansion if they began to face these costs. Over half (54%) have already limited, or plan to limit market expansion as a result.
“Every year, the BFCM conversation focuses on topline revenue,“ says Sam Ranieri, CEO, Reach. “The retailers who do it well know there’s a second number — one that arrives quietly in Q1, months after the revenue was celebrated.”
“BFCM creates enormous opportunities for retailers, but every new market entered and every threshold crossed can create compliance obligations that many teams don’t discover until after the fact. Retailers planning for BFCM 2026 need the infrastructure to manage that liability before it becomes a cost. Without it, peak-season growth can quickly become a compliance challenge in the following year.”
The findings suggest retailers preparing for BFCM 2026 will need to treat compliance readiness as a core part of peak-season planning, not a post-event reconciliation issue. Despite growing awareness of the risks, nearly half (48%) of retailers say they still need additional safeguards to protect against unexpected cross-border costs, underscoring how many businesses remain vulnerable heading into the year's peak shopping period.
For full study findings, visit HERE.
Reach is merchant of record infrastructure that lets brands sell globally without replatforming. We handle the complexity of cross-border payments, tax compliance, and fraud management, integrating directly with your existing commerce stack. With local acquiring in 70+ countries and pre-built integrations for major platforms, Reach enables mid-market and enterprise brands to scale internationally while maintaining full control of their customer data and technology.
