Chapter 17: Freight and Shipping

SEC. 1 FREIGHT SHARING

Market America employs a “Freight Sharing” method so that all Independent UnFranchise® Owners will share charges fairly, no matter where they are located, what location the product is being shipped from or the weight of the product. NOTE: Special programs such as the Shopping Annuity® Bonus Program may involve special shipping rates, effective as promoted through corporate communications from time to time. For nutraMetrix® Health Professional shipping rates, please see the nutraMetrix, Chapter 9, Sec. 12 of this UnFranchise Manual.

Standard shipping rates (ground shipping only):

United States: UnFranchise Owners in the U.S. placing orders at UnFranchise.com pay a flat-rate shipping charge of $6.00 on orders totaling less than or equal to $100.00 and 6% on the total UnFranchise Cost on orders exceeding $100.00, for delivery within the 50 states or to U.S. territories in which Market America is open for business. U.S. UnFranchise Owners who pick up orders at the Greensboro, NC facility pay a $3.00 flat rate handling charge for orders equal to or less than $100.00 and 3.75% on the total UnFranchise Cost on orders exceeding $100.00. Shipping costs are not to exceed $75.00.

Canada: UnFranchise Owners in Canada placing orders at UnFranchise.com pay a flat-rate shipping charge of CAN$8.00 on orders totaling less than or equal to CAN$135.00 and 6% on the total UnFranchise Cost on orders exceeding CAN$135.00, for delivery within Canada. UnFranchise Owners in Canada who pick up orders at the Market America warehouse facility in Canada pay a CAN$4.00 flat rate handling charge for orders equal to or less than CAN$135.00 and 3.75% on the total UnFranchise Cost on orders exceeding CAN$135.00. Shipping costs are not to exceed CA$100.00.
Non-standard shipping rates:
1. Additional charges are required for Next Day and 2nd Day shipments by air in addition to standard shipping. Contact UnFranchise Services for details and charges prior to air freight orders.
2. Gift cards and similar items delivered via email do not incur shipping charges.
3. On certain items, the shipping rates may be higher than the usual rates.
Carrier: Product and literature orders are sent through United Parcel Service (UPS) and U.S. Postal Service Priority Mail.
Payment: All shipping charges must accompany the order.

SEC. 2 SHIPPING TIME

When Market America receives an order in the morning, it is normally processed the same day. Market America will generate an invoice the next business day.

Process time: After Market America generates an invoice, products or orders being sent from Market America will normally ship within 48 hours. Normal shipping time is one (1) to six (6) working days, depending on the destination (this does not include weekends or holidays).
Shipments via vendor: Invoices with items to be sent from the manufacturer’s warehouse are electronically transferred. The manufacturer has 72 hours to ship the order and confirm shipment electronically with a shipping manifest to the company. The company tracks orders being sent from manufacturers’ warehouses on its computer. If an item is shipped via a commercial (truck) carrier, delivery of the item may take seven (7) to ten (10) business days.
ACH/Auto Bank Draft UnFranchise AutoShip: Each week, to verify if funds are available, all Bank Draft UnFranchise AutoShip orders will be held until the Friday of that week before generating invoices. Any Bank Draft UnFranchise AutoShip orders that come back from the bank as having nonsufficient funds (NSF) by Friday of the pull week will result in the following:
1. The individual UnFranchise AutoShip order will be canceled, and the Business Volume (BV) will be removed; and
2. The Bank Draft UnFranchise AutoShip will be permanently canceled (UnFranchise Owners can reinstate UnFranchise AutoShip later by submitting another UnFranchise AutoShip Form but using the credit card option only).

SEC. 3 PROBLEMS THAT DELAY THE SHIPMENT OF ORDERS

Inquiries regarding late orders are usually caused by the following:

A fifteen (15) business day hold is in effect.
An incorrect (short) amount of money was available to cover the order or shipping charges, and the company could not reach the UnFranchise® Owner by telephone.
Mistakes in the order placement or ID number, or the order was illegible.
Late incoming mail delayed the order, or the order was sent to the company’s physical address rather than the P.O. Box address.
The order arrived on Saturday.
The order may contain products that must be shipped via UPS ground (West Coast delivery may take ten (10) to fourteen (14) days).
An invalid address was provided (UnFranchise Owners should always ensure that Market America has a current address on file).

SEC. 4 SHIPMENTS OUTSIDE OPENED COUNTRIES/TERRITORIES

Market America will only ship to those countries and territories in which the company is currently open for business and to countries where SHOP.COM Global is available for customers. As Market America expands internationally, UnFranchise Owners will be notified in advance of applicable policies and procedures.

SEC. 5 DELIVERY PROCEDURES

Currently, Market America ships packages within the United States via UPS Ground Service and the U.S. Postal Service (USPS) Priority Mail and to Canada via UPS Ground Service. Our computer system chooses the shipping method based on the zip code and zone to which the package will be shipped. It is extremely important that all UnFranchise Owners have a valid shipping and mailing address (if the two are different) on file with Market America to ensure that packages are sent to a deliverable address. In very specific cases, Market America will ship packages via a commercial (truck) carrier directly from the manufacturer.

UPS:
1. UPS will make two additional attempts to deliver your order if they cannot reach you the first time. After two attempts have been made, UPS will send you a card advising you that they have a package for you that they will hold for seven days.
2. If you do not make an effort to pick up your package, they will return your merchandise to Market America.
3. When a package is returned to Market America, and a request is made by the UnFranchise Owner for reshipment, a freight charge will be assessed on the second shipment. This also applies when an UnFranchise Owner does not inform the company of a change of address, and the order is returned to the home office.
4. UPS will occasionally leave a package with a neighbor if you are not home. More often, however, they will follow the procedure outlined above. We suggest you leave a note instructing UPS where to leave your package if you will not be home to sign for it.
USPS: The U.S. Postal Service will deliver your package wherever you normally receive your mail. If unable to deliver, USPS will leave a yellow form for you to fill out, instructing the post office when to redeliver. If you request, they will hold the package at your local post office for you to pick up at your convenience. Packages returned by the USPS to Market America will be processed following the same procedures as with UPS.
Truck shipments: All commercial-sized items (i.e., all items exceeding five gallons, such as 30-gallon or 55-gallon drums) are shipped via commercial (truck) carrier directly from the manufacturer.

SEC. 6 SHIPPING DISCREPANCIES

UnFranchise Owners must notify Market America within thirty (30) days of the ship date to report any shipping problems, including but not limited to late or lost orders, continued backordered products still not received, short shipments, damaged items or wrong product received. If UnFranchise Owners experience any shipping discrepancy, they should contact UnFranchise Services with the following information readily available: UnFranchise Owner identification number, name, date of order, shipping address, product order number and method of delivery (shipper/carrier). UnFranchise Owners who fail to notify Market America of any shipping problem within thirty (30) days of the ship date waive any claim for correcting the problem.

NOTE: Issues related to shipping damage to the product packaging, such as crushed packaging or the appearance of being resealed, damage to the product label or product leaking upon delivery, must be addressed to unfranchiseservices@marketamerica.com within thirty (30) days of the product being shipped. If product hardening is noted upon opening, such must also be addressed to unfranchiseservices@marketamerica.com for determination as to whether replacement is warranted, so long as no more than thirty (30) days have passed since the original ship date.

If an UnFranchise Owner reships product to another destination, such as to a customer or outside the country where it was originally delivered by Market America or its manufacturer’s warehouse, Market America assumes no liability for product damage or compromised merchandise quality during the additional shipping route.

Short Shipments: A short shipment is defined as not receiving all individual items and/or packages that were ordered. Items still on backorder or items removed from an order before it is processed by Market America (due to problems with payment, being discontinued, etc.) are not considered short-shipped.
1. Individual items: All orders that are filled and processed at Market America are checked with great care. Since Market America utilizes a computerized weighing system, there is little chance individual items have been left out. Please recheck your order carefully before calling the corporate office.
2. Packages: Carefully count the number of packages delivered. Never sign a delivery receipt for more packages than have actually been delivered. When transport carriers sign for a shipment at Market America, they sign for a given number of pieces of freight and acknowledge this fact. Market America’s control over the shipment ends at that time, and the carrier assumes it.
Damages: As you receive your package(s), please check for damage to the outer packaging before signing for them. Never refuse a damaged shipment. Any damages, such as the package being crushed, resealed, opened or leaking product, should be noted by the delivery person on the delivery record. Market America exercises great care in packaging, handling and shipping product. Still, unavoidable accidents or careless handling by others will sometimes occur. Be assured that the product was in good condition when it left our warehouse. In the event UnFranchise® Owners do receive damaged product, they may be required, at the sole discretion of Market America, to return the damaged product to Market America at the company’s cost before Market America will reship the product. All packages must be opened and inspected upon receipt. Any damage to the product(s) must be reported to Market America as soon as possible.
1. UPS/USPS:
  1. An UnFranchise Owner should always accept the shipment but should list damaged items. Have the delivery agent note the damage on the delivery record if possible.
  2. The UnFranchise Owner should immediately notify UnFranchise Services at unfranchiseservices@marketamerica.com so that Market America can request an inspection by UPS or the USPS, who will assign a Lost or Damage Investigation (LDI) number.
  3. Be sure all damaged items, plus the shipping containers, are held, either for pick-up by UPS or USPS or to be returned to Market America upon request. Go ahead and use undamaged merchandise.
2. Commercial (truck) shipments:
  1. Always inspect shipments before signing for them. Call any damages to the attention of the delivery person, request that damages be noted, and sign for the shipment. Be sure to retain a copy of the bill of lading from the driver. Set damaged merchandise aside, immediately call the carrier’s local office and request an inspection of the damages; then notify UnFranchise Services at Market America. Market America will file the claim with the carrier after receiving proper documentation from the UnFranchise Owner.
  2. If damages are found later, call the carrier and ask for a damage inspection; then notify UnFranchise Services at Market America. Do not ship the damaged product back to Market America. Hidden damages must be reported to the trucking company within fifteen (15) days of delivery.
Wrong product: Wrong product is defined as product shipped by mistake in lieu of product that should have been shipped but was not. All orders that are filled and processed at Market America are checked with great care. Since Market America utilizes a computerized weighing system in combination with a computerized picking system, there is little chance that the wrong product has been shipped. In the rare event that UnFranchise Owners receive the wrong product, they may be required, at the sole discretion of Market America, to return the wrong product to Market America at the company’s cost before Market America will ship the correct product.
Extra product: Extra product is different from wrong product in that the UnFranchise Owner receives it in addition to the products that were ordered. In the rare event that UnFranchise Owners receive extra product or an extra package, they should contact UnFranchise Services. UnFranchise Owners who receive extra product will be required to return the product to Market America at the company’s cost.
Issued return authorizations: In the cases of wrong product, damaged product or extra product received, once Market America has issued a Return Authorization Number (RA#) to return the product to the corporate office, the product must be returned to Market America within thirty (30) days of the issuance of the RA#. If the product is not returned to Market America within (thirty) 30 days of the issuance of the RA#, Market America reserves the right to debit the UnFranchise Owner’s Business Account the UnFranchise Cost of the product, but only in the event that the UnFranchise Owner has received and failed to return product for which they have not paid. If Market America debits the UnFranchise Owner’s Business Account for the unreturned product, any Business Volume for the product will be assigned to the UnFranchise Owner’s personal BDC 001 for the date the Market America account is debited.

SEC. 7 FREIGHT ON BOARD (FOB) POLICY

The shipping terms for all packages shipped by Market America is Freight on Board (FOB). Any UnFranchise Owner that has lost shipments and/or has excessive shipping claims that exceed $1,000 in orders or two lost orders within a three-month period will receive a letter from the company putting them on notice of FOB and implementing a “signature required” term. The UnFranchise Owner must sign the acknowledgment line in the letter and mail it or fax it back to the company prior to any more orders being processed or shipped.