How do I avoid issues with my shipment being received?

DELIVERY REFUSALS

Merchandise delivery may be refused for the following reasons:

  • Merchandise received after purchase order Cancel Date or prior to the Ship Date
  • Merchandise received 5% under or more than Purchase Order quantity for orders over 1000 units – rule is applied at the Sku level – Out of Tolerance
  • Merchandise received 10% under or more than the Purchase Order quantity for orders under 1000 units – rule is applied at the Sku level – Out of Tolerance
  • Insufficient Purchase Order information on Bill of Lading
  • Missing Packing List or improperly marked cartons
  • Split or incomplete shipments without prior approval from the buyer
  • Delivery without an appointment
  • Delivered to incorrect DC address

Note: The vendor is required to notify the Buyer in advance of shipping an order that varies from the quantity ordered. Shipping variances will only be accepted with a Buyer’s approval.

Any additional freight costs incurred due to a refusal will be the responsibility of the vendor.


OVERAGES / SHORT SHIPMENTS –Out of Tolerance packing list

The acceptable unit variance rate for PO’s that are more than 1000 units is +/- 5%. The tolerance check is applied to the total order and by size/color.

The acceptable unit variance rate for PO’s that are under 1000 units is +/- 10%. The tolerance check is applied to the total order and by size/color.

Additionally, you are required to notify your buyer for approval before shipping an order that is Out of Tolerance.

Shortage
Shortages that exceed 5% on an order quantity that is over 1000 units, or 10% for an order quantity that is under 1000 units, may result in a chargeback being issued, and or the refusal of the over.

Overshipment
Overages that exceed 5% on an order quantity that is over 1000 units, or 10% for an order quantity that is under 1000 units, may result in a chargeback being issued, and or the refusal of the over.

NOTE: For overages we reserve the right to return merchandise to vendor with a chargeback for processing & handling or accept overage at a discounted price of 50% off of LDP.


CHARGEBACK INFORMATION

  • Merchandise must be prepared and shipped in accordance with the instructions in the Vendor Guidelines. Shipments not in conformance with these guidelines may be refused and returned at Vendor cost, or will be assessed a chargeback according to the schedule below.
  • Vendor debit memos will be generated by the Vendor Relations & Compliance Manager at the Distribution Center for all violations of packaging and marking requirements. Chargebacks will also be issued for internal damage related to insufficient packaging and Vendor-related quality problems. Urban Outfitters, Inc. (UOI) will provide photographs or documentation whenever possible.
  • Chargebacks will be approved by the Buyer prior to being issued. Upon approval, all copies will be sent to the Accounting Department for processing. All negotiations regarding Chargebacks must be addressed with the Buyer.
  • Approved chargebacks will be deducted from the next invoice payment for Vendors shipping under Net Terms. Chargebacks issued against orders shipped under the terms Letter of Credit will require the Vendor to wire the amount of the chargeback directly to the UOI Accounts Payable Department.
  • The Statute of Limitations for contesting chargebacks and shortages is 6 months. UOI will not address questions on chargebacks or research disputes on shortages that exceed 6 months from the date that the order was delivered. It is our policy to issue chargebacks within a few days of the order being delivered. All shortage claims and chargebacks are presented to the Vendor within 30 days of the time that the order has been received. We expect that our Vendors will respond in a timely basis with any questions or concerns. We will not be held responsible for shortages or chargeback claims that are over 6 months old.
  • Direct Orders Only – Backorders: All orders are to be delivered to the Gap Direct DC or the Reno Direct DC by the Cancel Date on the Purchase Order. Deliveries that arrive after the Cancel Date, without specific authorization from the Buyer, will be subject to a penalty of 2% per day charge (10% per week) or cancellation of the order. In addition, any backorders that are incurred due to receiving the merchandise after the date required, may result in a chargeback of $8.00 per/unit on each backorder taken.
  • Anthro Direct Orders Only – Defective Allowance: A 1% defective allowance will be deducted from all Apparel and Accessory invoices. Defective merchandise returned by our customers will not be returned to our Vendors unless the units returned on a specific item substantially exceed the 1% allowance. If this should occur, the Vendor will be contacted and informed of the problem and a Return to Vendor (RTV) will be negotiated.

Retail Chargeback Schedule

Nature of Violation

Fee (*)

Per (Unit/PO)

Product not pre-ticketed Min $100 or $.25/unit (*) Unit
Pre-ticketed in the wrong location Min $100 or $.50/unit (*) Unit
Pre-ticketed with incorrect tickets Min $100 or $.50/unit (*) Unit
Failure to ship jewelry, accessories, etc. on appropriate card $.20/unit (*) Unit
Failure to remove vendor MSRP labeling Min $100 or $.25/unit (*) Unit
Incorrect prepack configuration/Prepacked vs. Loose $.20/unit (*) Unit
Shipping loose units on a PO placed for prepacks only $ 200 PO
Quantity difference < or > 5% per sku $ 250 PO
Failure to label/mark item with country of origin Min $100 or $.25/unit (*) Unit
Shipping apparel on hangers Min $100 or $.20/unit (*) Unit
Improper bill of lading preparation $ 100 PO
Unmarked or improperly marked cartons $ 200 + labor to sort & label cartons Unit
Shipping under incomplete/incorrect PO information $ 200 PO
Failure to provide sufficient protection to fragile merchandise $ 200 + labor to protect Unit
No packing list found with shipment $ 200 PO
Improper placement of packing list $ 100 PO
Failure to ship in correct carton $ 200 PO
Mixed PO’s or mixed SKU’s in a master carton without SKU dividers $100 + labor to sort PO
Split shipment without approval from Buyer $ 100 PO
Failure to correctly label product with RN#/CA#, care/content in French and English Min $100 or $.25/unit (*) Unit
Delivery without an appointment or after DC hours $ 400 PO
Delivery to incorrect address $ 500 + freight PO
Delivery arrives after PO Cancel Date 2 % of order total per day PO
Incorrect freight terms $ 200 + freight PO
Incorrect carrier $ 200 + freight PO
Additional quality assurance inspection $ 20 x # of hours Unit
Shipping without a lead certificate $ 100 PO
Tradestone compliance (COO, customs description, packing list, commercial invoice, UCC 128 carton labels) $ 100 each violation PO
Insufficient/incorrect information on packing list $200 PO

* Indicates fee is on an escalating schedule, increasing with each subsequent offense.

Direct/Wholesale Chargeback Schedule

Nature of Violation

 Fee (*)

Per (Unit/PO)

Backorders incurred as a result of delivery after purchase order cancel date $ 8.00 per back order incurred PO
Improper placement of label Min $100 or $.50/unit (*) Unit
Pre-labeled with incorrect labels Min $100 or $.50/unit (*) Unit
Failure to remove vendor MSRP labeling Min $100 or $.25/unit (*) Unit
Quantity difference < or > 5% per sku $ 250 PO
Failure to label/mark item with country of origin Min $ 100 or $.25/unit (*) Unit
Shipping apparel on hangers Min $100 or $.20/unit (*) Unit
Improper bill of lading preparation $ 100 PO
Unmarked or improperly marked cartons $ 200 + Cost of labor to sort and properly label cartons PO
Shipping under incomplete or incorrect purchase order information $ 200 PO
Failure to provide sufficient protection to fragile merchandise $ 200 + labor to protect PO
No packing list found with shipment $ 200 PO
Insufficient/incorrect information on packing list $ 200 PO
Improper placement of packing list $ 100 PO
Failure to ship in correct carton + dimensions $ 200 PO
Mixed PO’s or mixed SKU’s in a master carton without SKU dividers $ 100 + Cost of labor to sort and properly label cases PO
Split shipment without approval from Buyer $ 100 PO
Failure to comply with product marking requirements Min $ 100 or $.25/unit (*) Unit
Delivery without an appointment or after DC hours $ 400 PO
Delivery to incorrect address $ 500 + PO
Delivery arrives after PO Cancel Date 2 % of order total per day PO
Incorrect Freight Terms $ 200 + PO
Incorrect carrier $ 200 + PO
Additional quality assurance inspection $ 20 x # of hours PO
Shipping without a lead certificate $ 100 PO
Merchandise not bagged/bags not sealed Min $ 100 or $.25/unit (*) Unit
No photo sample sent prior to order being shipped $ 100 PO
Product not labeled with SKU numbers Min $100 or $.25/unit (*) Unit
Shipping order without receipt of TOP Sample $ 100 PO
Tradestone compliance (packing list, UCC 128 carton labels, commercial invoice) $ 100 each violation PO
Wrong product shipped (wrong color, size, or item) $ 250 PO

* Indicates fee is on an escalating schedule, increasing with each subsequent offense.