Chargeback Fees for Non-Compliance

Last updated: August 12, 2021

 

Hello Valued Clients,

It has come to our attention that there are some things happening during the receiving, storage, and shipping of your products that impact our accuracy, efficiency, or safety.

To address these issues we have developed this document outlining our requirements and expectations. This document also explains the operational impact of non-compliance (the why behind it).

Wholesale/Private Label/Carton Forwarding Chargebacks

Unexpected large shipment without 3 business days notice to [email protected].

  1. A large shipment is defined as:
    1. a shipping container,
    2. or one pallet or more via freight,
  • or 20 cartons or more via small parcel.
  1. Operational impact of non-compliance: It is critical for our staff to be notified of all inbound shipments. This will allow us to prioritize and receive freight accurately and process your shipment in a timely manner.
  2. Chargeback: $1.00 per carton or $20 per pallet

 

Canceled Outbound Shipment that is already prepped

  1. Operational impact of non-compliance: It is critical for our staff to work on all shipments within the time frame agreed upon. This will allow us to to prioritize and receive/ship freight accurately and process your shipment in timely manner.
  2. Chargeback: $50 per pallet, $5.00 per carton, or $1.00 per item

 

Container or LTL/FTL freight shipments: No FF number on BOL

  1. Operational impact of non-compliance: It is critical for our staff to be able to identify your shipment. This will allow us to to prioritize and receive freight accurately and process your shipment in timely manner.
  2. Chargeback: $100 per shipment

 

Small parcel shipments: No FF number on Cartons

  1. Operational impact of non-compliance: It is critical for our staff to be able to identify your shipment. This will allow us to prioritize and receive freight accurately and process your shipment in a timely manner.
  2. Chargeback: $5 per carton

 

Overweight pallet > 1500 LBs

  1. Operational impact of non-compliance: Overweight pallets increase the risk of injury to our Associates and damage to our equipment. This increases our costs and the time between receiving your shipments and processing your shipment.
  2. Chargeback: $100 per pallet

 

Poorly stacked pallet that will not stand on its own after cutting off any shrink wrap or outer wrap/strap

  1. Operational impact of non-compliance: Poorly stacked pallets increase the risk of injury to our Associates and damage to our equipment. This increases our costs and the time between receiving your shipments and processing your shipment.
  2. Chargeback: $50 per pallet

 

Using pallets below an A or B grade

  1. Example: nails sticking out of pallets and broken boards.
  2. Operational impact of non-compliance: Low grade pallets increase the risk of injury to our Associates, and damage to our equipment and/or your products. This increases our costs and the time between receiving your shipments and processing your shipment.
  3. Chargeback: $25 per pallet

 

Problem packages

  1. A problem is anything that takes special communication with the Account Manager to get resolved.
  2. Operational impact of non-compliance: It is critical for our staff to not have to redo work after already beginning work on a job. Rework adds labor cost, and sometimes wastes materials as well. It is critical for our staff to work efficiently on jobs with minimal problems. A high problem rate adds a significant amount of labor cost.
  3. Chargeback: $40 per hour for the wasted time, plus actual cost of wasted materials.

 

Not fully communicating with [email protected] about job requirements prior to SalesinUSA beginning work on job

  1. Operational impact of non-compliance: It is critical for our staff to not have to redo work after already beginning work on a job. This adds labor cost, and sometimes wastes materials as well.
  2. Chargeback: $1.00 per unit

 

Sending in items that have temperature requirements without prior written approval

  1. Operational impact of non-compliance: We have no refrigeration capabilities on site, therefore we have no immediate place to put perishable product. And, for product that requires a consistent ~70 F, we have limited storage availability. Our warehouse may be over 90 F in summer months.
  2. Chargeback: $40/hr billable hours to address all the problems and find a solution

 

Receiving freight bills (or bills for customs/taxes/duties) in our name that should have been paid by the client, in the client’s name

  1. You (the client) must always be listed as the IOR (importer of record).
  2. You (the client) must always be listed as the “Bill To” with the freight or shipping company.
  3. Operational impact of non-compliance: It is critical for our staff to work efficiently on jobs with minimal billing problems. A problem with freight bills adds a significant amount of labor cost.
  4. Chargeback: $40 per hour for handling the issue and finding a solution

 

 

 

Incoming cartons > 50 lbs and/or over 30” on the longest side

  1. Operational impact of non-compliance: Overweight/oversized cartons increase the risk of injury to our Associates and damage to our equipment. This increases our costs and the time between receiving your shipments and processing your shipment.
  2. Chargeback: $10 per carton

Online Arbitrage Chargebacks

Shipment plans containing many different SKUs

  1. Operational impact of non-compliance: Having over 20 SKUs per shipment plan significantly delays processing time, which causes delays for all clients and increases labor cost.
  2. Chargeback: 20-30 SKUs in shipment plan + 5%; 30-40 + 6%; 40-50 + 7%; 50-60 + 8%; 60-70 + 9%; over 70 SKUs + 10%.

 

Incoming packages containing less than 10 units of the same SKU

  1. Operational impact of non-compliance: It is much more time consuming for our staff to process packages that contain less than 10 units of the same SKU.
  2. Chargeback: 50% extra added on top of the standard rate.

Unexpected large shipment without 3 business days notice to [email protected]

  1. A large shipment is defined as:
    1. one pallet or more via freight,
    2. or 20 cartons or more via small parcel.
  2. Operational impact of non-compliance: It is critical for our staff to be notified of all inbound shipments. This will allow us to prioritize and receive freight accurately and process your shipment in a timely manner.
  3. Chargeback: $1.00 per carton or $20 per pallet

 

Small parcel shipments: No FF number on Cartons

  1. Operational impact of non-compliance: It is critical for our staff to be able to identify your shipment. This will allow us to to prioritize and receive freight accurately and process your shipment in timely manner.
  2. Chargeback: $5.00 per carton

 

Canceled Outbound Shipment

  1. Operational impact of non-compliance: It is critical for our staff to work on all shipments within the time frame agreed upon. This will allow us to prioritize and ship freight accurately and process your shipment in timely manner.
  2. Chargeback: $50 per pallet, $5.00 per carton, or $1.00 per item.

 

Changing receiving, prep, storage, or shipping plans after SalesinUSA has begun work on job

  1. Operational impact of non-compliance: It is critical for our staff to not have to redo work after already beginning work on a job. Rework adds labor cost, and sometimes wastes materials as well.
  2. Chargeback: $40 per hour for the wasted time, plus actual cost of wasted materials.

 

Not maintaining the blue columns in the spreadsheet and/or problem packages

  1. A problem is anything that takes special communication with the Account Manager to get resolved.
  2. Operational impact of non-compliance: It is critical for our staff to have accurate information on what you have in inventory and what you want to put into your next FBA shipment. This will allow us to work efficiently and process your shipment in timely manner. It is critical for our staff to work efficiently on jobs with minimal problems. A high problem rate adds a significant amount of labor cost.
  3. Chargeback: $40/hr billable hours to address all the problems this creates.

 

Not fully communicating job requirements prior to SalesinUSA beginning work on job

  1. Operational impact of non-compliance: It is critical for our staff to not have to redo work after already beginning work on a job. This adds labor cost, and sometimes wastes materials as well.
  2. Chargeback: $1.00 per unit

 

Sending in items that have temperature requirements without prior written approval

  1. Operational impact of non-compliance: We have no refrigeration capabilities on site, therefore we have no immediate place to put perishable product. And, for product that requires a consistent ~70 F, we have limited storage availability. Our warehouse may be over 90 F in summer months.
  2. Chargeback: $40/hr billable hours to address all the problems and find a solution

 

Incoming cartons > 50 lbs and/or over 30” on the longest side

  1. Operational impact of non-compliance: Overweight/oversized cartons increase the risk of injury to our Associates and damage to our equipment. This increases our costs and the time between receiving your shipments and processing your shipment.
  2. Chargeback: $10 per carton