Amazon A-to-Z Guarantee now covers property damage and personal injury

Category: Amazon News
Amazon A-to-Z Guarantee now covers property damage and personal injury

For more than 20 years, Amazon’s A-to-Z Guarantee has protected customers by covering both the timely delivery and the condition of items purchased in our store, including those items sold and fulfilled by independent sellers. Now Amazon are expanding the A-to-Z Guarantee for customers in the EU, UK, and Canada to protect customers if a defective product causes property damage or personal injury. This is already live in the US.

While injury or damage caused by a defective product purchases is rare, we strive to make the resolution of any such claim straightforward and convenient. To simplify this process for our customers and selling partners, Amazon will facilitate the resolution of property damage and personal injury claims between the customer, the selling partner, and their insurance provider.

– Amazon

Note the last two words…. your insurance provider, Amazon say that to sell on their marketplace, you must obtain and maintain a valid commercial liability insurance policy once the gross proceeds from your transactions exceed an applicable insurance threshold in sales in any month which is apparently detailed in the Amazon Services Europe Business Solutions Agreement (but it doesn’t actually specify what the thresholds may be).

You will need insurance which covers you on each Amazon country site you sell on.

What you need to know about A-to-z Guarantee claims

  • For claims under €1,000 or £1,000 that are proven to have been caused by a defective product, at Amazon’s discretion, they will pay a concession directly to the buyer. Amazon will notify you when a claim has been processed, and you can follow the claim status on Manage A-to-Z Claims in Seller Central. As long as you have proof of valid insurance and adhere to their policies, Amazon won’t request reimbursement from you or your insurance provider.
  • For claims over €1,000 or £1,000, Amazon or their third-party administrator, Sedgwick, will work with you to verify the claim and pay the concession to the buyer.
  • If you need a new policy, Amazon have identified providers that offer commercial liability insurance. To contact the provider, go to Simply Business.

If you are a reseller do you need insurance?

If you’re a reseller and not a producer, Amazon or Sedgwick will contact you via email to provide the producer’s insurance or contact information. You’ll be responsible for the claim compensation value if:

  • You’re unable to identify the producer of the product.
  • You don’t respond to Amazon’s request in seven business days.
  • You don’t have a valid insurance policy as required by the Business Solutions Agreement when Amazon request it.

It would appear likely that a few high profile cases like exploding escooter batteries have Amazon spooked and they naturally want to cover themselves from liability. If you are sourcing from reputable producers this shouldn’t be a problem – the issue is likely to arise if you sell unbranded goods from China, especially if they’re not fully CE certified (that means not the China Export mark and not just a CE stamp – the products need to have actually been tested!!). You need to know who the producer is and be pretty confident that they have insurance if you’re selling their products and don’t want to carry the liability yourself.

It’s likely that some resellers will find insurers are unwilling to carry the risk for unbranded high risk goods. That’s a problem that suggests the goods shouldn’t be sold in the first place and without insurance it’s a big risk to your finances if anything should ever go wrong.

9 Responses

  1. Good luck taking a claim to China, the very same manufacturers and trading companies have taken over Amazon, and Amazon has hand in hand pumped onto the platform.

    Now all of a sudden quality and liability seem an issue, lol.

  2. ‘It’s likely that some resellers will find insurers are unwilling to carry the risk for unbranded high risk goods.’

    Everything on Amazon does have a brand thou ?

    This is all a load of nonsense and PR spin !

    UK sellers who brand their own products will get caught up in this big time, as they will be unable to get insurance or take documents to file with Amazon.

    If your Chinese you simply vanish and come back a week latter with a new company.

  3. I think you missed the main issue for sellers on Amazon which can be found in section 8: “policy (ies) naming Amazon and its assignees as additional insureds”.

    The insurance policy taken by the seller must name Amazon as insured. In other words, sellers are paying for Amazon’s insurance.

    We need a law that defines the legal responsabilities of marketplaces: either customers are the marketplaces’ or they are the sellers’ but this cannot change depending on which policy Amazon wants to apply.

    1. However, this will make it hard for UK businesses that create their brands and manufacturers via a third party. It will be very difficult to get insurance. Especially in certain categories like Vehicle parts and safety goods etc, some will find it nearly impossible to get insurance, even with CE testing.

      Chinese sellers could I assume easily get fake documents file them and simply vanish and come back a week later, a scenario not offered so easily to those in the UK.

      1. With £4 of every £10 in every sale on average going to Amazon, these days, via sale fees, advert fees, FBA fees, and postal fees.

        Is Amazon even worth it, glad i didn’t order loads of stock after the lock down and Brexit like everyone else.

  4. Another reason why I dont sell on Amazon. Stuff their rules and regulations! Theres no money in selling on Amazon – there are many better avenues.

    1. Marketplacepulse suggests Amazon takes 50-60% of the total spend via fees and charges.

      “Amazon said “many” sellers will end up paying less fees. According to Marketplace Pulse research, sellers pay more fees as a percentage of their sales every year. Last year, Amazon charged a typical private-label seller 50-60% of their sales in various fees. They will pay even more now because, in practice, most sellers cannot manage their supply chains as perfectly as Amazon theorizes, and they cannot always increase prices to maintain their margins”

      This is another way to dump charges onto sellers as a one off as pumping past 60% sure seems like daylight robbery.

      Exporters will need insurance for the EU, Sweden, UK, and so forth thats a massive cost.

      Manufacturers if they need a CE that’s around £3500 a product on average, if you have 20 SKUS thats alot of money and some have already posted on amazon there insurance is £3000 plus.

      Spend £150K to sell on a platform flooded with Chinese on different rules, whilst paying 60% to the platform via different fees, whilst jumping over 1000 loops.

      No thanks !

      Yes some people might get insurance this year for £150 but im sure renewals wont be so low. But many many others will get caught out and hit hard, whilst the Chinese seem unaffected as usual.

      Im sure Temu and Shein couldnt give 2 monkies about it for example.

      I didnt think things could actually get any worse for UK sellers, But here we are !

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