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▲ Video account attention: cross-border navigation Amazon has been criticized for years for its poor supervision of the sale of counterfeit and substandard products in its third-party marketplace , and for failing to establish an effective protection mechanism for the damage to consumers caused by defective products.
Last month, the U.S. Consumer Product Safety Commission sued Amazon, forcing it to recall dozens of defective products sold on the market. Under the strict scrutiny and pressure of relevant regulators and lawmakers, Amazon recently updated its A-To-Z claims policy to protect claims for defective products in the third-party market. Amazon updates A-To-Z claims policy It is learned that on August 10th local time, Amazon US released an announcement on expanding transaction protection for buyers and sellers on the platform.
Amazon is offering benefits for cross-border navigation ? It will bear claims within $1,000 for sellers! #Amazon##Cross-border Information#Cross-border E-commerce Video Account The announcement indicated that starting from September 1, Amazon will work with insurance fraud experts to review claims using a dedicated detection system. Customers who suffer losses due to inferior products sold on the platform can receive effective compensation up to a maximum of $1,000 . If the seller operates in compliance and holds insurance, Amazon will pay the compensation directly without the seller having to bear the cost. For products sold through the platform, Amazon will facilitate the resolution of property damage and personal injury claims between customers, sellers, and their insurance companies:
1. If a buyer’s claim is found invalid, he or she can appeal, and the seller will also be able to defend his or her product.
2. If the seller does not respond, Amazon will step in and resolve the buyer’s issue directly, bearing the costs up front and then pursuing compensation from the seller separately. It is understood that when a customer makes a claim, Amazon will work with external independent insurance fraud experts and use internal fraud and abuse detection systems to review the claims, while rejecting unverified, frivolous or abusive claims and striving to rationalize the claims. Amazon launches insurance accelerator program, with new insurance policy requirements In addition, Amazon has updated its seller insurance requirements and launched the Amazon Insurance Accelerator program in partnership with insurance brokers .
In February this year, Amazon introduced a new $1 million insurance premium rule, requiring sellers with a total sales of $10,000 for three consecutive months to provide proof of liability insurance with a minimum coverage of $1 million for their products before March 15. Failure to do so will result in a ban on sales. In June, Amazon further updated its insurance purchase policy and added specific details. Now, Amazon stated in its latest announcement that before September 1, 2021 , sellers with monthly sales of $10,000 will need to purchase product liability insurance and designate Amazon as an additional insured. Amazon has currently partnered with insurance brokers to create the Amazon Insurance Accelerator. Insurance providers participating in the program will evaluate sellers and provide liability insurance to eligible sellers, with the sellers bearing the insurance costs. Insurance companies available to sellers include: - China People's Insurance Company
▲ The picture comes from Zhiwubuyan However, it is worth noting that Amazon does not require sellers to choose insurance companies in the insurance accelerator program, but they can purchase insurance from any qualified insurance provider. According to Amazon's previous announcement, the insurance does not cover all sellers, but mainly sellers of certain categories that meet the requirements. But as far as the current situation is concerned, basically most sellers have received email notifications from Amazon, and the email stipulates that insurance is required if monthly sales reach 10,000 , which means that the number of sellers that meet the requirements has greatly increased. ▲ The picture comes from Zhiwubuyan For sellers who reach certain sales limits but do not purchase effective insurance in a timely manner, Amazon will seek compensation for the costs incurred in resolving claim disputes regardless of the sales threshold . At the same time, Amazon will restrict sellers from selling products in certain categories or even shut down their accounts. There are many different opinions. How should we interpret insurance policies? Amazon's updated insurance payment policy does not clearly state the specific implementation details and insured persons, and sellers have different interpretations.
According to sellers’ feedback, the insurance recommended by Amazon backend is not available for individual purchase. Individual sellers need to register for a self-employed business license or find other companies to purchase insurance. Some sellers have changed their account information to corporate information, but this can only deal with Amazon’s inspection and cannot make actual claims. Some sellers also opened cases to consult customer service, and the reply they received was that Amazon’s current transaction claims are mainly aimed at self-delivery sellers, and that they have not yet received any notification that FBA sellers need to join the project. ▲ The picture comes from the seller communication group It is learned that in order to protect consumers, the United States requires all manufacturers selling products locally to purchase product liability insurance. Platforms such as Wayfair, Overstock, and Home Depot have set the purchase of product liability insurance as a condition for entry. Amazon has previously received multiple lawsuits for its poor supervision of defective products. Therefore, some sellers believe that the new regulations on purchasing product liability insurance are actually a means for the platform to transfer litigation risks. Here, we also summarize the new insurance regulations: 1. The insurance participation condition is changed from sales of US$10,000 for three consecutive months to sales of US$10,000 in a single month. 2. Amazon provides insurance companies for sellers to choose from, and individual sellers need to seek other channels. 3. In fact, the insured is Amazon, and each account needs to submit a coverage of 1 million yuan to Amazon. What do you think about this? Feel free to leave a message in the comment area~
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