Recently, many sellers have received Amazon’s mandatory payment of 1 million insurance.
After the total sales of three consecutive months reach $10000, the seller needs to purchase at least $1 million of commercial insurance, and failure to purchase insurance may lead to withdrawal or even prohibition of sales.
Specifically, Article 9 of the sales agreement stipulates that the Seller shall purchase and maintain commercial general insurance, additional liability insurance or excess liability insurance for at least $1 million within 30 days after the total sales amount reaches $10000 for three consecutive months. For more information, sellers can visit the Amazon service business solutions agreement website.
All the sellers who received the email have reached the threshold of three-month total sales of $10000. Therefore, they need to reply to the email within 30 days by registering their email accounts and attaching the liability insurance certificate to the email. The liability insurance certificate should cover Amazon.com All goods that are sold and traded on. The document shall be in the form of an “insurance certificate” issued by the seller’s insurance company, detailing the property and personnel covered, the coverage and any exclusions or deductibles. The document can be submitted in. PDF,. PNG or. GIF format.
So what are the insurance requirements? The seller’s commercial liability insurance policy must meet all the following conditions:
-The total coverage limit for each incident is at least US $1 million, covering liabilities arising from or related to your business operations, including products, products / completed operations, and personal injuries;
-Policies must cover adoption Amazon.com All products sold on the website;
-The policy must specify Amazon and its assignee as other insured persons;
-The name of the policyholder must match the name of the “legal entity” provided to Amazon. You can verify the legal person name in the seller’s center;
-The policy must be valid for at least 90 days from the date of submission.
At present, most sellers have received e-mail notification, but some sellers say they have not received it. If they have not received the notification, maybe the sales have not reached the policy threshold, or Amazon’s notification is on the way.
At present, the seller’s concerns include:
1.How much is the insurance? Is this a mandatory purchase?
The insurance premium is related to the type of product and the sales volume of the product. However, the average product is not expensive. About $1600 can cover it. A seller opened a case to ask the customer service about the specific situation of compulsory purchase of insurance. The answer is that the insurance premium policy is not clear, and there is no clear answer for the time being.
2. Through which channels can we buy insurance?
Through the introduction of a mysterious person, coverwallet.com You can buy it by yourself, and it will be solved in less than $500.
In addition, the following websites can also be purchased:
3. What if I can’t provide proof of liability insurance for products sold through Amazon store? What was the result?
Some sellers put forward their own opinions. It can be seen from the literal meaning of the email that in order to further regulate the behavior of Amazon sellers, Amazon can continue to put forward new policies in the future. If the seller fails to comply, the seller has the right to seal the link, confiscate the payment and close the store… But this is only a personal understanding, not an explicit notice from Amazon.
So sellers don’t need to panic. Read this sentence in Amazon’s e-mail carefully: “the total sales amount for three consecutive months reaches $10000”. For three consecutive months, it means to reach 1W every month. If it can be controlled below 1W in the third month, there is no need to buy insurance. You need to provide insurance only if you exceed $10000 per month in a row.
In the United States, the insurance industry is very developed, and there are many insurance companies of this type. If there is a channel to find such companies, it is said that about $1600 will be settled.
At present, most of the sellers who receive e-mail are auto parts, 3C, clothing and household appliances. Maybe this policy is not for all sellers, and Amazon only requires sellers who receive notice to take action. Those who have received performance notice need to be dealt with, and those who have not need to be dealt with temporarily.