Sellers must buy Amazon insurance before March 31st, otherwise their stores will be closed!

Sellers must buy Amazon insurance before March 31st, otherwise their stores will be closed!


After the Spring Festival, Amazon sellers haven’t even had time to catch their breath before a new round of “critical hits” comes!

First, the tariff issue made people anxious, and now Amazon has issued an "ultimatum" - it is mandatory to purchase commercial liability insurance and submit it before March 31 at the latest, otherwise the store may face the risk of closure!


Amazon issued an "ultimatum": your account will be suspended if you don't buy insurance!

Recently, more and more sellers on the US site have received official emails from Amazon, requiring eligible sellers to purchase commercial liability insurance, otherwise their accounts may be suspended.

Specifically, if your store’s sales exceed US$10,000 in any month, or Amazon proactively asks you to provide proof of insurance, you must purchase and upload commercial liability insurance, otherwise you may face the risk of having your account suspended!

This policy is actually not a new regulation. As early as Section 9 of Amazon's Business Solutions Agreement, it was clearly stipulated that sellers with sales exceeding US$10,000 need to purchase commercial liability insurance.

However, Amazon did not enforce the policy strictly in the past, but this time it directly set the mandatory enforcement date as March 31, which means that a large number of sellers must purchase it and can no longer "find loopholes"!

What is Amazon Business Liability Insurance?


Simply put, if your product causes consumer injury due to design defects, manufacturing problems or insufficient instructions, and you are sued, commercial liability insurance can help you cover the compensation costs.

✅ Minimum payout: $1 million

✅ Coverage: Consumer claims caused by product defects, design flaws, production problems, etc.

✅ Applicable to: Sellers with sales ≥ $10,000

From another perspective, commercial liability insurance is actually a "protective umbrella". Once you encounter a product liability lawsuit, insurance can help you bear certain risks. Otherwise, a lawsuit may directly bring down your store!

Zhaodanmao Cross-border cooperates with the official channels of PICC (a state-owned enterprise) to provide professional Amazon commercial insurance services. We can provide the same commercial insurance services as Amazon backend, and help your store to insure at a more favorable offline purchase price. If you need, please contact WeChat: FLA66668888 and we will arrange it for you!

Therefore, eligible sellers should not hesitate and buy when necessary. After all, the account is the greatest asset. Don’t wait until Amazon really takes action to regret it!

The new “high return rate” logo is launched, and the buyer’s voice is upgraded again!



In addition to mandatory insurance, Amazon recently made a major update to the Buyer’s Voice feature and launched a new return tracking logo to help sellers monitor product returns more accurately.


🔍 What is the “High Return Rate” label?

If the return rate of one of your ASINs is higher than the bottom 25% of similar products, then a conspicuous "high return rate" label may be attached to your listing page, which will directly affect the conversion rate!

View path:

📍 Seller Backstage → Performance → Buyer's Voice → [Return mark displayed]

🚨 Impact of new features:

✅ Risk reminder: If the return rate of a certain ASIN has soared recently, the system will issue a "risk exists" warning in advance, allowing you to optimize the product or listing in advance to prevent the listing from being labeled as "high return rate".

✅ High return ASIN warning: All ASINs that have been marked as "high return rate" will be directly displayed on the buyer's voice page to facilitate sellers to make timely adjustments.

✅ New key data indicators:

📌 Short-term return rate: Return trend over the past 3 months

📌 Recommended short-term return rate: When the return rate of a certain ASIN is too high, Amazon will give a "recommended return rate" standard. If it exceeds this value, it must be optimized as soon as possible, otherwise it may be labeled as "high return rate".

📌 How big is the impact?

In the past, if buyers wanted to know the product return rate, they had to look up reviews or find various data analysis plug-ins. Now Amazon directly puts the "high return rate" on the listing, which is undoubtedly a huge blow to the conversion rate!

More importantly, if your product is marked as having a “high return rate,” it is likely to affect your ad performance, resulting in reduced exposure and even affecting Amazon’s traffic recommendations.

How should sellers respond?




✅ 1. Purchase commercial liability insurance immediately to avoid account risks!

If your sales exceed $10,000, purchase business liability insurance as soon as possible and submit it before March 31st. Don’t wait until your account is actually suspended to remedy the situation!

✅ 2. Monitor "Buyer Voice" regularly to avoid the "High Return Rate" label!

Enter the Buyer Voice feature to see which ASINs have been tagged or are about to be tagged.

For products with a high return rate, prioritize optimizing the listing description to clarify product functions, materials, and usage to reduce returns due to misleading information.

Pay attention to customer feedback and find out the main reasons for returns. Is it quality issues? Size deviation? Functional inconsistency? Targeted adjustments can effectively reduce the return rate!

✅ 3. Make price, inventory and supply chain adjustments in advance!

Amazon’s rules are becoming increasingly stringent. Sellers can no longer “treat the symptoms rather than the root cause” in their operations. They must start from aspects such as supply chain, product quality, and pricing strategies to create a more robust operating model.

From rising tariffs to mandatory insurance, to new "high return rate" regulations, every policy is forcing sellers to raise their operating thresholds.

In the future, only two types of sellers will survive: one is those with a strong supply chain and controllable costs; the other is those who keep up with trends and respond quickly!


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