Can insurance also be used to make money? A large number of Amazon sellers are being fleeced again!

Prime Day just passed, and unexpectedly , bad news came again. Recently, a large number of sellers said that their insurance policies were suddenly rejected by Amazon!

Sellers have all received warning emails stating that their insurance policies are invalid. Amazon said in the email that “there is not enough information to verify the seller’s commercial insurance certificate.” The reason given mentioned information about “whether the policy has a deductible.”

What is liability deductible?

(1) When an insurance accident occurs, if the loss is within the prescribed amount, the insured will bear the loss by himself and the insurance company will not be responsible for compensation. If the loss exceeds the prescribed amount, the insurance company will be responsible for the claim.

(2) This arrangement avoids many small claims, which greatly reduces the insurance company's claims settlement costs. Therefore, compared with policies without deductibles , policies with liability deductibles are more affordable.

The insurance policy was canceled for no reason. What is Amazon up to?

In fact, the reason is that Amazon recently adjusted its latest insurance policy. The latest policy shows that only sellers with sales exceeding US$1 million within 12 months can purchase insurance with a deductible!

So why does Amazon treat big and small sellers so differently?

In fact, because sellers with annual sales of more than 1 million US dollars have higher sales, the probability of product problems is relatively high. If they buy insurance without a deductible, the increase in premiums will definitely be much higher than that of small sellers. Moreover, these sellers have such high sales that they will not run away easily, so it is wise for Amazon to relax the insurance terms for these sellers.

However, sellers with annual sales of less than $100 can only choose insurance with no deductible, so the premium price almost doubles.

In addition, Amazon US released a report saying: Starting from August 1, 2022, the refund and return policy will be updated!

We are all not surprised by Amazon 's various unfair rules. The wave of returns after the big promotion makes it even more difficult for sellers who ship their own goods to suffer.

The official return policy is completely biased towards buyers without any bottom line. As long as customers want a refund, they will be successful. Amazon US does not support sellers to approve returns. The system automatically reviews according to the return policy. Many categories still have a 30-day unconditional refund and return policy, which means that sellers have no way to inspect it, and the loss is certainly unpredictable.

When you live under someone's roof, you have no choice but to accept it. We cannot control the policies. We sellers can also work hard on products and services to try to reduce the return rate. Zero Zero Seven also hopes that everyone will use insurance with a deductible as soon as possible!