Amazon Insurance has been updated again. Today, some stores received a notice from Amazon today, which seems to say that the insurance with 0 deductibles has been cancelled. The email mentioned that Amazon updated the commercial liability insurance policy on June 13, 2022, requiring The seller offers a zero deductible policy.
However, sellers reported that they faced various problems and challenges when purchasing a zero-deductible policy, so Amazon decided to continue to allow the deductible policy of Amazon sellers and restore the previous policy requirements: that is, everyone can buy another $10,000 for free The policy with the claim amount is gone, and the premium is reduced back to the original price. …
Stores that purchase and renew insurance from June to August are equivalent to being pitted by Amazon.
Amazon's policy on insurance should be that they have not communicated with the insurance company to come up with a good plan. When the deductible was 10,000 before, everyone felt that an additional store expense was added, but during the insurance process, the seller's store was in a strange situation. There are overseas stores, individual sellers, and Hong Kong stores.
At first, for sellers, the deductible of 10,000 US dollars was purchased according to Amazon’s requirements, and Amazon also stipulated that Amazon’s official commitment should be within 1,000 US dollars, that is, 1,000 to 10,000 US dollars of sellers’ responsibility. However, the June rules adjust that if the annual sales are less than 1 million US dollars, there must be 0 deductibles, and the sales of more than 1 million US dollars can have deductibles. On the one hand, Amazon can avoid small sellers who may directly lose their stores due to buyer claims, and the responsibility will ultimately fall on Amazon officials. On the other hand, it also covers Amazon's $1,000 liability. It's good for Amazon, but it's a higher risk for insurance companies to take on claims, but this high risk will be passed on to sellers. The most common standard 0 deductible also costs more than 50% more than the previous one.
However, after less than two months of implementation, there may be too many sellers who have responded. First, the premiums are much higher, which is a lot of effort for many small sellers. To save costs and choose low-priced ones, it is possible to step on the thunder and buy non-compliant fake insurance policies, just like the previous POE incident.
So Amazon has repeatedly reverted to its original policy. As soon as this news came out, the sellers who had insured and renewed in the past two months would vomit blood, and the sellers who were not insured and were ready to insure were overjoyed and could save a lot.
Amazon is uncertain, and everyone should not be too hasty about policy updates, but wait and see.