Urgent! Amazon issued a warning that a large number of orders are abnormal

Urgent! Amazon issued a warning that a large number of orders are abnormal


Today, foreign media revealed that an error occurred in Amazon’s backend MFN network, which may cause delays in order delivery for third-party sellers.

Pending orders have surged in the past two days. Sellers who usually had only one or two pending orders now have more than ten every day. The proportion of pending orders has increased from 5% to 20%.

It was not until this morning that Amazon realized the problem and issued an announcement saying that due to problems with MFN's capture and matching of order information, some orders may be delayed in delivery. Amazon also told sellers that there were no problems with these pending orders and that it would expedite troubleshooting and delivery.


In the announcement, Amazon suggested that sellers do not need to take any additional actions for these pending orders and promised that these orders will not affect the sellers’ store performance.


Not only are there a large number of pending FBA orders, but there are also problems with self-delivery. Some FBM sellers reported that more than 75% of the orders received today are still pending.

Amazon responded that FBM sellers need to deliver these orders in a timely manner instead of canceling them, because pending orders for self-delivery cannot be shipped with order numbers. Some sellers with short lead times and SFP may miss the latest shipping date due to the time it takes to fix the bug . Amazon recommends that orders can be shipped directly and the express order number can be filled in after the bug is fixed. If the affected orders are delayed in delivery, Amazon will not include it in the delayed delivery rate.


Amazon has always taken the blame for bugs. Sellers can report to Amazon in time if the affected orders are recorded in their performance. What needs more attention is that a large number of sellers have recently received Amazon's mandatory insurance emails, and some categories that are not dangerous goods or prone to accidents have also received emails.


How to deal with compulsory insurance?


Let me review the information about compulsory insurance for you: First, for merchants whose total sales reach US$10,000 for three consecutive months , they must purchase and maintain at least US$1 million of commercial comprehensive liability insurance, and umbrella liability insurance or excess liability insurance within 30 days.


Second, the seller’s commercial general liability insurance policy must meet all of the following conditions:

1. The total insured limit for each accident is at least US$1 million, including product liability, third-party bodily injury or infringement of personal rights, and property damage

2. The policy must cover all products sold through the Amazon.com website

3. The policy must designate Amazon and its assigns as other insureds

4. The policy holder name must match the "Legal Entity" name provided to Amazon.

5. The policy must be valid for at least 90 days from the date of submission.


Judging from the feedback from sellers, there is no pattern to follow. First, both individual sellers and corporate sellers have received emails; second, in terms of product range, sellers who have been informed that they need to purchase insurance include auto parts, clothing and other categories.


If the seller does not reply to the email to verify the insurance information within the specified date, Amazon will "hold future payments in the account" and will not be able to withdraw cash from the account. If the seller has not purchased insurance before April 2, they may be banned from selling by Amazon. For risk management reasons, we believe that it is an inevitable trend for Amazon to require all sellers to purchase insurance.


Many sellers are still confused about insurance, and don't know what insurance to buy and how to buy it. In order to allow everyone to obtain lower premium costs and better protection solutions, we have specially joined forces with a professional third -party insurance agency, SCO Insurance, to conduct centralized procurement.

The advantage of SCO Insurance is that it can obtain quotes from multiple insurance companies at the same time, which is convenient for sellers to quickly compare prices. Amazon currently lists insurance service providers including AIG, Chubb and STARR. SCO Insurance can provide quotes from the above three insurance companies and other insurance companies that meet Amazon's requirements for sellers to compare and choose the best one to obtain the advantage of lower premium costs.



Not only that, SCO Insurance can also further obtain greater premium discounts by concentrating on group purchase advantages. A single Amazon seller who insures with an insurance company has weak bargaining power. SCO Insurance also provides insurance for a large number of sellers to insurance companies, which is equivalent to collective purchase from insurance companies. It has strong bargaining power and can obtain lower premiums. And because of SCO 's strong bargaining power, it can further cooperate with major insurance companies to jointly develop insurance products for Chinese sellers , which are more in line with the actual situation of Chinese sellers in terms of premium levels, insurance amounts and terms.


SCO Insurance's specific customer service work will also be completed by professionals with business licenses from the China Banking and Insurance Regulatory Commission, including dedicated solution designers, quotation specialists, billing specialists, claims specialists, and daily maintenance and processing specialists during the insurance period. SCO team members have an average of more than 10 years of experience in export product commercial comprehensive liability insurance seller services.


The insurance process is also greatly convenient for Chinese sellers. Sellers only need to send the complete customized insurance form and the third-party test report of the insured product to the SCO business contact. After receiving the complete information, the SCO contact will contact the seller within 2 working days to provide feedback and quotes from major insurance companies. After confirming the quote and signing the confirmation form and paying the premium, the insurance certificate can be received in as fast as one working day , and the certificate can be uploaded to the Amazon backend to prevent the product from being banned from sale.


It will be a major trend to insure products with third-party liability insurance. Amazon's operation can save itself too much cost and legal disputes, so it is very likely that this policy will be implemented uniformly for all sellers in the future.


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