I can't remember the name, but it was Ace Hardware's brand. It sprayed on like spray paint. Any waterproofer will work. They are not waterproofed. I think the smell is anti-insect spray applied to keep insects from China from entering the US. It dissipated quickly once I moved the coop outside.
Mine sits right out in the elements. I don't even cover with a tarp, and the inside stays nice and dry. Wood seems to be holding up just fine, and like I said, better than the one I built. The plywood back door on that one got wet at the edge, where the layers come together, and they are warping. I'll have to replace the door come spring.
I suppose something like this could suffer damage in shipping, like anything else. I ordered window blinds once, and they got so damaged the UPS guy refused to leave them. I think my coop came via FedEx. I bought it on eBay using a make offer scenario and got a very good price on it. It came in two large and heavy boxes. I put it together in the garage and my 8 year old and I moved it to the grass later.
The instructions to put it together are terrible. I laid everything out and just used common sense and the line drawings. It was simple.