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January 31, 2020

New Drop Ship Compliance Program Updates for January 2020 for Saks Fifth Avenue and Saks Off 5th Vendors

Saks Fifth Avenue and Saks Off 5th have announced new changes to their drop ship compliance program including chargeback adjustments and changes to shipping requirements. Learn more about the Saks drop ship update details straight from Saks Fifth Avenue in this post.

Saks Fifth Avenue has stated that they launched this new EDI drop ship update for the following reasons: “As we reflect on our Holiday season and head into 2020, we would like to share some information with you to help further solidify our partnership and continue to provide the best possible service level for our customers. Please take a moment to carefully review and make note of the following.”

Saks Drop Ship Update Compliance and Chargebacks

Since Saks Fifth Avenue launched the Perfect Order Drop Ship Compliance Program in August 2019, they have been reviewing the feedback from their vendor base to strive for continued improvement. They stated that they want to position their program to be both fair, yet effective in placing the customer experience first.

  • As part of their efforts, they are setting chargebacks to $20 per imperfect order moving forward.
  • In order to bridge this change, they have also decided to waive any potential chargebacks that may have incurred during December 2019 – January 2020.
  • Chargebacks will apply at the new amount beginning for the month of February.

It’s important to remember that orders should be shipped both physically via FedEx the same day they are shipped in VendorNet*

As a reminder, vendors have the opportunity to be exempted from chargebacks if they maintain a Perfect Order for the previous 3 months before the current reporting month.

E.g. If the number of Perfect orders for November, December and January is greater than or equal to 96% of the total orders for that same period, then any chargebacks incurred for the reporting month of February would be waived.

2020 Holiday Schedule and Closures

Federal holiday schedule for 2020: the following dates will automatically be accounted for as holidays and will not impact your shipping window for Saks Fifth Avenue and Off 5th. Any other weekdays during the year, excluding weekends, they will be treated as legitimate business days and factor into your ship window.

  • Wednesday, January 1 – New Year’s Day
  • Monday, January 20 – Martin Luther King, Jr. Day
  • Monday, February 17 – Washington’s Birthday
  • Monday, May 25 – Memorial Day
  • Friday, July 3 – Independence Day (observed)
  • Monday, September 7 – Labor Day
  • Monday, October 12 – Columbus Day
  • Wednesday, November 11 – Veterans Day
  • Thursday, November 26 – Thanksgiving Day
  • Friday, December 25 – Christmas Day

If you have any closure periods that fall outside of these dates, it is your responsibility to notify their team as early as possible so further steps can be taken to mitigate customer impact.

Their policy is that closure periods of two or more consecutive business days require you to zero out your inventory at least two business days prior to your closure.

If your closure is only for one day, they leave it at your discretion to determine if you can ship any orders that you may receive under a reduced ship window.

Failure to follow this protocol may result in compliance chargebacks.

Credit and Payment Issues

If you identify any issues related to drop ship payments, the first step is to login to the Vendor Portal for visibility into the drop ship orders, associated invoices that were generated in HBC’s system, along with payment status.

You should reach out directly to [email protected] for further investigation, making sure to provide them with the drop ship order numbers you are inquiring about.

If, for any reason, you need to implement a stop-shipment, it is your responsibility to zero out your inventory in VendorNet to ensure no further orders can be placed. You must also ensure that any orders already in your pipeline ship within the normal window.

If you have any questions regarding these compliance updates, contact Saks Fifth Avenue and Saks Off 5th Drop Ship Team at [email protected].

Read more about the Drop Ship Compliance Program details that went live August 2019 in this previous post:

Saks Fifth Avenue and Saks Off 5th New Drop Ship Compliance Program

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