The bad packaging is normal for Coach unfortunately. They often don't wrap items securely and put them in boxes without padding.
The week long UPS ground is usually only used for Coach outlet. Items ordered from Coach.com usually use 3 day shipping. Charging to ship it back is not normal for orders from Coach.com.It might be from the outlet. I don't know since I've never shipped anything back to them.
In the future, I suggest you find a good SA at a store to order from. You can order over the phone. Lately I've been ordering from an SA in Las Vegas even though I don't live there. Then if there is something wrong, she handles it.
Quick question, I ordered something during the black friday sale and I'm sure its UPS ground, does that mean I paid for MFF item??? I purchased directly from coach itself