Non-Compliance Fees Schedule

Last updated 6/18/2020

Non-Compliance Reason	Description	Performance Trigger (using a rolling 30 day performance)	Non-Compliance Fee (charged for all instances of non-compliance if the applicable Performance Trigger is met)
Late Tracking Upload	Shipment Tracking Information received past due	< 98.00% of units receive tracking on time	10% of MC (as defined below) for first day late + additional 1% of MC for each additional day late thereafter unless and until either Shipment Tracking Information is received or the order is cancelled
Late Drop Ship - Late Movement	Ship confirmation received after Expected Tracking Movement Date	< 97.00% of tracking numbers move on time	10% of MC for the first day late + 1% of MC for each additional day late thereafter unless and until either ship confirmation is received or the order is cancelled
Merchant Order Cancellation	Pre-fulfillment refund that the customer did not request	>0.50% units are cancelled	$5/unit
Merchant Order Return	Post-fulfillment refund that the customer did not initiate or the refund was executed using one of the following reason types: wrong item received; defective product received; damaged in transit; or dead tracking.	>0.50% units are returned	$5/unit
Wrong Tracking Number Needing Correction or Invalid Tracking	Merchant loads incorrect shipment tracking information which needs to be corrected by Groupon agent or shipment tracking information shows delivered to incorrect address or shipped before order placed	N/A	$5/order
Customer to Merchant Ticket Escalation	Customer service ticket is not responded to within 1 business day or resolved within 7 business days and is escalated for review and handling by Groupon Customer Service	N/A	$5/order
Negative Customer Satisfaction Response	Customer contact tickets to the merchant that result in negative Customer Satisfaction survey response	< 50% on 5 or more survey responses	$5/negative CSAT
Product Delivered Late	Customer received item later than Expected Delivered Date.	< 85.00% of orders are delivered within Expected Delivered Date	$2/order

**For purposes of this Agreement, “MC” means Sales Proceeds less Commission Fees.**

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Metric	Description	Score	Goal
Overall Performance	Overall Scorecard Health		100%
Tracking Uploaded On-Time Rate	The rate at which orders receive a tracking number upload from the merchant within 2 business days of the order being placed.		>98%
Tracking Movement On-Time Rate	The rate at which an order's tracking number shows movement on the carrier's website within 3 business days of the order being placed.		>97%
Invalid Tracking Rate	The rate at which orders are given tracking numbers that show movement before the order is placed, arrive at the incorrect destination, or use a carrier that Groupon does not support.		<5%
Cycle Time	Average time elapsed between the date an order is placed, and the date that order is marked delivered.	Days	<6 Days
Customer to Merchant On-Time Response Rate	The rate at which tickets and messages created by customers receive a response within 1 business day.		>95%
Cancellation Rate	The rate at which orders placed are then cancelled by the merchant prior to tracking upload.		<0.5%
Return Rate	The rate at which successfully placed orders are returned/refunded after tracking has been uploaded.		<0.5%
Customer to Groupon Contact Rate	The rate at which orders received by the merchant result in customers contacting Groupon Customer Service.		<1.4%
Customer to Merchant Contact Rate	The rate at which orders received by the merchant result in customers opening a ticket to contact the merchant directly.		<3.6%
Customer Satisfaction Score	The rate of customers indicating satisfaction with their merchant’s customer service following a ticket being marked “Solved”.		>70%

Metric

Description

Score

Goal

Overall Performance

Overall Scorecard Health

100%

Tracking Uploaded On-Time Rate

The rate at which orders receive a tracking number upload from the merchant within 2 business days of the order being placed.

>98%

Tracking Movement On-Time Rate

The rate at which an order's tracking number shows movement on the carrier's website within 3 business days of the order being placed.

>97%

Invalid Tracking Rate

The rate at which orders are given tracking numbers that show movement before the order is placed, arrive at the incorrect destination, or use a carrier that Groupon does not support.

<5%

Cycle Time

Average time elapsed between the date an order is placed, and the date that order is marked delivered.

Days

<6 Days

Customer to Merchant On-Time Response Rate

The rate at which tickets and messages created by customers receive a response within 1 business day.

>95%

Cancellation Rate

The rate at which orders placed are then cancelled by the merchant prior to tracking upload.

<0.5%

Return Rate

The rate at which successfully placed orders are returned/refunded after tracking has been uploaded.

<0.5%

Customer to Groupon Contact Rate

The rate at which orders received by the merchant result in customers contacting Groupon Customer Service.

<1.4%

Customer to Merchant Contact Rate

The rate at which orders received by the merchant result in customers opening a ticket to contact the merchant directly.

<3.6%

Customer Satisfaction Score

The rate of customers indicating satisfaction with their merchant’s customer service following a ticket being marked “Solved”.

>70%

Non-Compliance Fees Schedule

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