Vendor Guide v3.1 Updates

Vendor Guide Updates – v3.1

Effective 10/23/14

Drop-Ship Services

• Adult signature required for delivery of Goods containing alcohol or tobacco
• No longer specifying zone-based timeframes
• Groupon branding must be ordered at least 7 business days prior to feature start date
• ORM-D products must have:
  • Completed MSDS sheets uploaded to Goods Central/Salesforce by Buyer prior to deal launch
  • Appropriate stickers on outside of packaging to comply with carrier regulations

3PL-Ship Services

• Each PO must be shipped separately - 1 PO per pallet (or carton, if shipping small parcel)
• Each master carton of Goods must contain:
  • Exterior label with PO#, UPC(s), quantity(ies), colors/sizes, and, if applicable, country of origin, expiration date, lot code, date of manufacture
  • No more than 6 UPCs (however, no more than 1 UPC for apparel – shoes are not considered apparel)
• Each master carton of Goods with multiple UPCs must contain:
  • Bright, clearly visible exterior label stating "Mixed"
  • Packing slip
  • Inner packs - no more than 1 UPC per inner pack and each marked with a UPC/quantity/product description label
• Each pallet must be:
  • Built to a maximum height of 58" (no minimum height)
  • Labeled to include carton count, UPC(s), product description(s), quantity(ies)
• Items that are purchased kitted by vendor must be labeled with the kitted UPC upon arrival
• No longer specifying ISPM pallet guidelines for international shipments
• Each PO scheduled pickup time must be prior to 5 p.m. CST of the 3PL Ship-By Date
• Each PO must be shipped complete from one designated Ship-From location
• Each PO pickup window should be 3 hours
• Each PO containing ORM-D products must have:
  • Completed MSDS sheets uploaded to Goods Central/Salesforce by Buyer prior to deal launch
  • Appropriate stickers on outside of packaging to comply with carrier regulations

Invoices and Customer Support

• All invoices must be submitted within 30 days from email notification of invoice being available, for 3PL-Ship deals, or from feature end date for Drop-Ship deals.

Terms and Conditions

• Section 2(b): If a product has a manufacturer’s or third party warranty, an electronic copy of that warranty must be provided to the buyer.
• Section 10(c): Non-compliance cost recovery charges are now identified in a table in Schedule 4 of the Agreement. Several new NCCR charges have been added as part of this update.

New NCCR Codes

• New NCCR expense offsets involving a percentage of “COGS” (Cost of Goods Sold) will be calculated as such:
  • X% * (units affected * net unit price)
• Using a 3PL short inventory charge as an example, let’s take a quick look at the change in calculation:
  • Current shortage charge = $5/unit
  • New shortage charge (v3.1) = 10% of COGS
  • If a PO has a shortage of 10 units (net unit price, let’s say, is $25.50), the current shortage charge would be $50, while the new shortage charge would be $25.50.
  • New shortage charge calculation
    • = X% * (units affected * net unit price)
    • = 10% * (10 * $25.50)

1. Drop-Ship Services NCCR

NCCR Reason	Explanation	Expense Offset
Freight Allowance	Groupon will not cover costs above approved freight costs	$5/unit
Split Orders	Seller must aggregate orders by order date and ship in as few of boxes as possible	$5/box + Shipping Costs
Missing ORM-D labels	Seller must apply ORM-D labels to packaging per carrier guidelines	$.50/order
Late Invoicing	Seller must invoice within 30 days from feature end date	$50 per invoice

2. 3PL-Ship Services NCCR

NCCR Reason	Explanation	Expense Offset
Packed Multiple Purchase Orders Together	Each Purchase Order must be shipped separately. Purchase Orders may not be packaged together.	$100 per Purchase Order
Shipped Without Scheduling	PO is shipped by Seller without scheduling shipment in Goods Central	$100 per Purchase Order
Missing ORM-D Notification	ORM-D Items must have MSDS Sheets	$500 per Purchase Order
Poor Pallet Packaging	Pallets must be shrink wrapped and less than 58" in height	$100 per pallet
Missing Packing List	Each Purchase Order must be accompanied by a packing list outlining cartons, individual units, and weights	$100 per Purchase Order
Excess Inventory (>5%)	Seller delivered more than 5% overage	10% of COGS
Unauthorized Kitting	Goods that require kitting that have not been pre-approved	$200 per Purchase Order
Late Invoice	Must submit invoice within 30 days from receipt	$50 per invoice

SPECIAL NOTE

The compliance team will be strictly enforcing Section 27 of the Terms and Conditions:

Payment Claims.  ANY CLAIM ARISING OUT OF OR RELATING TO ANY PAYMENT PAID OR OWED BY BUYER IN CONNECTION WITH ANY OPTION AND PURCHASE DOCUMENTS MUST BE MADE IN WRITING WITHIN 60 DAYS AFTER THE EARLIER OF: (A) INITIAL PAYMENT BY BUYER IN CONNECTION WITH THE APPLICABLE GOODS AND SERVICES, OR (B) SELLER’S FIRST KNOWLEDGE OF THE GROUNDS FOR SUCH CLAIM, AND ALL SUCH CLAIMS NOT SO MADE SHALL BE DEEMED WAIVED BY SELLER