Glossary
AutoShip
AutoShip is a recurring order, typically monthly, that a company automatically bills and ships to a customer or distributor at a set volume until it is cancelled. Companies often use AutoShip to help distributors meet minimum personal volume requirements consistently and to give retail customers an easy way to keep receiving products without reordering manually.
Also called: auto ship, autoship order, loyalty order, subscription order
Why it matters
AutoShip is closely watched by regulators and by responsible companies, because a compensation plan that effectively requires distributors to keep a personal AutoShip order active just to stay eligible for commissions can look like a purchase requirement rather than a real customer sale, a pattern associated with inventory loading.
Example
A distributor sets up a 100 point monthly AutoShip order so she automatically meets her plan's minimum personal volume requirement every period without placing a manual order each time.