The premium is as high as 26,000 yuan! Amazon requires sellers to buy insurance, otherwise they will face a ban!

As the saying goes, a new year brings new changes. On the first day of work, a seller received an email from Amazon, which scared the seller.

Recently, in the seller communication group, many sellers reported that they had received the email shown in the picture below.

The email content is as follows:

As required by your Selling Agreement with Amazon, we expect you to provide proof of liability insurance for products sold through the Amazon Store . Please respond by March 15, 2021. Specifically, Section 9 of the Selling Agreement requires you to purchase and maintain at least $1 million in commercial general, additional liability, or excess liability insurance within 30 days after your sales total $10,000 for three consecutive months.

According to the email, the seller must reply to this email using the email address registered with the account within 30 days and attach a liability insurance certificate in the email. The liability insurance certificate must cover all products sold by the seller on Amazon.com.

In this email, Amazon announced that the applicable insurance threshold is $10,000 and the minimum insurance coverage is $1 million . Seeing the minimum coverage of $1 million, some sellers were already confused.

Some sellers even said on Weibo that this was a blatant money-grabbing method.

   ▲ The picture comes from Weibo

How much is the premium for a one million dollar insurance coverage? According to a seller on Weibo, the annual premium is nearly four thousand dollars.

   ▲ The picture comes from Weibo

Under this Weibo post, some sellers complained that the premium was too expensive. Another seller joked that if you think about it from another angle, the seller's account value has increased.

  ▲ Picture from Amazon

Although the content of the email is very clear, many sellers are still confused. What does it mean and how should they deal with it?

  ▲ The picture comes from Zhiwubuyan

  ▲ The picture comes from the seller communication group

“The attributes of a seller are personal, and I don’t know if it is mandatory for the company.”

"It has happened to me too. What should I do? Can you guys come up with a solution?"

“Does it require all stores or is it a lottery?”

Sellers have expressed doubts about this new policy. Some sellers speculate that this is a new measure proposed by Amazon to regulate sellers' behavior, aiming to regulate the market, screen high-quality sellers, and promote high-quality products . In addition, this policy will also help improve buyers' shopping experience and disperse shopping risks .

At the same time, Amazon's mass email is not targeted at all sellers, but at some sellers who have reached the threshold. For these sellers, buying product liability insurance means an increase in operating costs and they will also bear more operating risks.

In this regard, some sellers suggest that you first ask Amazon if they have any recommended insurance packaging products, and if so, join their plan. (Walmart and others have packaged supplier insurance plans, and the price will be more favorable if you join the package insurance plan.)

  ▲ The picture comes from the seller communication group

Once you receive a notification email from Amazon, you must process it. Before processing it, let’s first look at the specific requirements given by Amazon this time.

• The coverage is at least $1 million and covers liabilities arising from business operations, including products, completed operations, and personal injury;

• All products sold through Amazon must be covered;

• The policy must specify Amazon and its assigns as other insureds;

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

Amazon also attached several qualified insurance companies at the end of the email for sellers to choose from.

Since there is no way for sellers to avoid buying insurance, what they need to consider now is which insurance company offers the most affordable quote.

Have you encountered the above problems? How did you solve them? Welcome to leave a message in the comment area. Finally, I wish you all good luck in your business!