Non-Compliance Cost Recovery - Seller On Record (EN version)

Non-Compliance Cost Recovery Guidelines

Version 1.2

Last Updated: 02032015

These Non-Compliance Cost Recovery Guidelines (“Guidelines”) are designed to drive a better customer experience by ensuring that Sellers comply with the instructions and/or obligations of the Agreement and to outline the process and consequences for failure to do so.

I. Non-Compliance Cost Recovery charges

The Agreement sets out the Seller’s performance obligations. Where a Seller fails to comply with those obligations, Groupon Goods Global GmbH (“Groupon Goods”) suffers damages. Non-Compliance Cost Recovery (“NCCR”) is Groupon’s tool to recover these damages from the Seller due to seller’s breach of its obligations (“NCCR Charges”).

In the event that Groupon Goods takes the view that Seller breached one or more obligations of the Agreement, Groupon Goods reserves the right to deduct from payments due to Seller (or Seller shall pay Groupon Goods, if no payments are due) the amounts corresponding to the breach, as set out in the Agreement and as specified in these Guidelines. Please note that a Seller may be charged NCCR Charges for more than one breach per unit sold under the Agreement.

A detailed summary of NCCR Charges that Groupon Goods applies is listed below. Groupon Goods will update these Guidelines from time to time, in its sole discretion. Such updates may include additional elements of the NCCR process. Although Groupon Goods reserves its right to amend the rollout of any part of the NCCR process at anytime, a planned summary of each of these rollouts can be found in Appendix A.

II. Applicable NCCR Charges

Although any breach of one or more instructions and/or obligations of the Agreement can result in an NCCR Charge, Groupon Goods reserves the right, in its sole discretion, to determine which NCCR Charges to charge Seller. The NCCR Charges that Groupon Goods currently chooses to apply are the following:

•   Late uploading of tracking number(s)
•   Incorrect tracking number(s)
•   Incorrect Return Addresses
•   Seller Branded Materials
•   Out of Stock Goods
•  Customer complaints about the order being late

If Groupon Goods changes the breach categories for which it will charge NCCR Charges, it will communicate this to all Sellers via email.

A. Late uploading of (non-) tracking number(s):

Seller is required to upload tracking numbers in accordance with the time periods set out in the Agreement.

If Seller does not upload the tracking number(s) within the agreed time period, Groupon Goods may issue a charge of 2 CHF per unit that has been uploaded too late. Please note that shipping the order on time but not uploading tracking number(s) will also result in an NCCR Charge. For the avoidance of doubt, this also applies in the event that parties agree that Seller is entitled to ship the products by not using a tracking number (so called “non tracking number”). In such event, Seller shall upload the non tracking number within the agreed period of time.

Example:

- 100 units sold

- 80 tracking number(s) uploaded within the prescribed time period

- 20 units not uploaded within the prescribed time period

NCCR Charge: 20 units x 2 CHF = 40 CHF (or equivalent currency)

B. Uploading incorrect tracking number(s):

Groupon Goods and Seller may agree that a tracking number will be used to give visibility to a customer on the location of the order. If agreed upon, Groupon expects the tracking numbers to be (i) valid, (ii) active, (iii) uploaded in accordance with the Agreement and visible on the website of the used carrier and (iv) unique to the shipment in question. In the event that any of these requirements are not met, the tracking number shall be deemed incorrect (“Incorrect Tracking Number”).

If Seller uploads an Incorrect Tracking Number, Groupon Goods will charge an NCCR Charge of 2 CHF per unit that has not been unloaded correctly. In addition, Groupon will remove all Incorrect Tracking Numbers and will move orders back to status “OPEN”, until Seller uploads a correct tracking number. Please note that uploading an Incorrect Tracking Number may also result in uploading the tracking number late which will incur an additional NCCR Charge as mentioned above under A. Again, the aforementioned shall also apply in the event that parties agreed that Seller is entitled to ship the products with a non tracking number.

Example:

- 100 units sold

- 10 Incorrect Tracking Numbers

NCCR Charge:- 10 Incorrect Numbers x 2 CHF = 20 CHF

C. Incorrect Return Address:

Seller shall always include the correct return address in the packaging information, provided to Seller by Groupon Goods. If Seller fails to comply with this instruction, Groupon Goods shall charge a NCCR Charge of 2 CHF per unit sold. Correct return addresses can be found in appendix C.

Example:

- 100 units sold

NCCR Charge: 100 units x 2 CHF = 200 CHF

Groupon Goods will check compliance with these requirements by making test purchases.

D. Seller Branded Materials:

All shipped items and packaging must be free of any non-Groupon branding or marketing materials. This excludes the branding of the product itself (e.g. Adidas shoes may have branded packaging, but may not include additional Seller materials on, or inside the package). If Seller fails to comply with this instruction, Groupon Goods will charge an NCCR Charge of 2 CHF per unit sold.   

Example:

- 115 units sold

NCCR Charge: 115 units sold x 2 CHF = 230 CHF

Groupon Goods will check compliance with these requirements by making test purchases.

E. Out of Stock:

If Seller cannot provide the stock as agreed in the Agreement, Groupon Goods shall charge an NCCR Charge of 2 CHF per unit that Seller promised, but is unable to, deliver.

Example:

- 100 units sold

- 10 units cannot be fulfilled

NCCR Charge: 10 units x 2 CHF = 20 CHF

F. Customer complaints about the order being late

Groupon Goods will monitor the customer contacts per unit sold (“CPU”) over a 6 week period per deal, starting from the day after the first feature date of the product on the website. In the event that the CPU for late delivery is higher than 50 contacts and/or 3% during a period of 6 weeks, Groupon Goods will charge 2CHF an NCCR Charge per affected unit.

Example:

- 100 units sold

- 20 unique customer contacts complaining about orders delivered outside the shipping window

- CPU at 20%

NCCR Charge: 20 units x 2 CHF = 40 CHF

G. Resolution response

Buyer will email Seller in the event Seller’s input is required to resolve a customer contact (“Resolution Email”). All Resolution Emails shall be responded to by Seller in a timely manner and in any event within five days of being sent. All responses to Resolution Emails shall contain clear, concise and practical answers. For example, if the Resolution Email is about a missing order, Seller provides the tracking code to evidence its whereabouts. For each Resolution email not responded to in accordance with these instructions, Buyer will charge an NCCR Charge of 2CHF per affected unit.

Example:

• 10 Resolution Emails in relation to 2 units each
• 5 Resolution Emails not responded to NCCR Charge: 5 Resolution emails not responded to x 2 units x 2CHF = 20 CHF

III. Multiple NCCR Charges

If a Seller breaches multiple instructions and/or obligations of the Agreement, there will be multiple NCCR Charges.

Example:

-100 units sold

- 10 Incorrect Tracking Numbers

- 20 (non-) tracking numbers that were not uploaded in time

- 10 units x 2 CHF = 20 CHF

- 20 units x 2 CHF = 40 CHF

NCCR Charge: 20 CHF + 40 CHF = 60 CHF

IV. FAQs

A. Can I dispute the decision to impose NCCR Charges?

Yes, you can dispute the decision to charge an NCCR Charge within 10 business days from the day Groupon Goods notifies you of the NCCR Charge. To do so, please contact your assigned Partner Manager with a detailed explanation of the reasons for your dispute.

B. How are NCCR Charges recovered by Groupon Goods?

Groupon Goods will withhold the amount of any NCCR Charge from the next payment owed to Seller. If Seller is not due any payments, Groupon Goods will issue an invoice to Seller for the amount of the NCCR Charge.

C. Currency of the NCCR Charge?

Groupon Goods incurs the NCCR Charges in Swiss Francs (CHF) against the invoice. Our finance team will apply the exchange rate at the point of charge. The exchange rate is obtained and based at the time of charge back calculation from XE.COM.

D. Further developments:

These Guidelines will be revisited from time to time to ensure that the text and examples are up to date. Groupon reserves the right to further utilize the NCCR program and will provide two (2) weeks notice in advance of any changes. A summary of all NCCR changes and revisions you can find below.

Appendix A - Summary and roll-out scheme of NCCR:

NCCR Charges	Status	Country Code	Date of Rollout / Update	Description of damage / Update
Late uploading of  (non-) tracking number(s)	Active	EMEA	20/03/2014	Not upload the (non-) tracking number(s) within the agreed upon time period. Please also refer to Appendix B.
Incorrect (non-) tracking number(s)	Active	EMEA	08/07/2014	Upload a valid and active tracking number or a valid non tracking number.
Incorrect Return Address	Active	EMEA	20/10/2014	Use the incorrect return address on packaging and labelling
Vendor Branded Materials	Active	EMEA	20/10/2014	Not include any of non Groupon branding or marketing materials
Out of Stock	Active	EMEA	15/12/2014	Orders cancelled due to lack of stock
Customer complaints about the order being late	Rollout	EMEA	18/05/2015	Product not received - outside shipping window

Appendix B - Measuring SLA 

Order OPEN on Monday before 5 pm
SLA	On time	Due date	Late
1 Day	Monday	Tuesday	Wednesday
2 Days	Monday, Tuesday	Wednesday	Thursday
Order OPEN on Monday after 5 pm
SLA	On time	Due date	Late
1 Day	Monday, Tuesday	Wednesday	Thursday
2 Days	Monday, Tuesday,Wednesday	Thursday	Friday

Appendix C - Returns Address

Shipped from	Maximum Weight	Maximum Dimensions	Returns Address
AT	31,5kg	100x60x60 Max. gith: 360cm (max. length 200cm)	Postfach 5500 5005 Salzburg Österreich
BE	30kg	L + 2xW + 2xH < 300, L < 150 (cm)	Groupon Returns Courtensstraat 1 8791 Beveren Leie BE
CH	30kg	100x60x60cm max. girth 400cm (max. length 250cm)	Groupon Goods Global Postplatz 2 9489 Schaan LOG Schweiz
DE	31.5 Kg	120x60x60cm Max Girth of 360 cm	Groupon Goods Global Retourenannahme Eichborndamm 167 - 175 13403 Berlin
DK	20kg	Length 150 cm, Width + Circumference 300 cm	Groupon Goods C/O Bring Parcels AB Fuglebækvej 5-9 2770 Kastrup DK
ES	30kg	length + height + width = 120cm	Groupon - CLIMACITY S.L. Calle Torrox nº 2 5ª 28041 Madrid ES
FI	35kg	Length 150 cm, Width + Circumference 300 cm	Groupon Goods C/O Itella Logistics Center Dickursbyvägen 148 01530 Vantaa FI
FR	20kg	Length 100cm, Length + circumference 150cm	IEFS (Inter Europe Fashion Services) GROUPON 32 Avenue Charles de Gaulle 93240 STAINS FR
GB	30kg	Length 250 cm, Length + Circumference 500 cm	Groupon Goods Returns Riverway Industrial Unit D River Way Harlow CM20 2DP GB
GB	>30kg	No restrictions	GROUPON GOODS RETURNS C/O ARROW XL 4 The Fort Walthew House Lane Martland Park Wigan WN5 0LB United Kingdom
GR	31.5 Kg	120x60x60cm Max Girth of 360 cm	Artemidos 2, 15125, Marousi Athens, Greece
IE	20kg	Length 150 cm, Width + Circumference 300 cm	GPN, PO Box 111, Portlaoise, IE
IT	30Kg	length + height + width = 120cm	GROUPON C/O SDA – Milano 4 Via Dei Rovedi 20010 Pregnana Milanese (MI) IT
NL	30kg	100cmx70cmx58cm	Groupon Returns Eekboerstraat 25 7575 AV Oldenzaal NL
NO	35kg	Length 150 cm, Width + Circumference 300 cm	Groupon Goods C/O Postens Godssenter Alfasetveien 24 0024 Oslo NO
PL	31.5kg	Height + width + length < 300 cm Maximum volume of a parcel – 0.35 m3	DHL Supply Chain Sp. z o.o. Al. XX-lecia 23c 96-515 Teresin
SE	20kg	Length 150 cm, Width + Circumference 300 cm	Groupon Goods C/O Bring Parcels AB Bordsvägen 3 556 52 Jönköping SE