Today, Amazon says it will step in to handle consumer complaints over defective products. Instead of telling customers to reach out to the seller, it will allow customers to begin their claims process through Amazon Customer Service.
Starting September 1st, Amazon will take the claim information and notify the seller to help them address the claim. If the seller doesn’t respond, Amazon will step in to address the customer concern at its own cost while it separately tries to pursue the seller. And if the seller rejects a claim that Amazon believes is valid, it will compensate the customer.
Since Amazon says it will use its existing fraud detection and abuse systems and work with external, independent insurance fraud experts to analyze customers’ claims for validity, it sounds like everything will be handled in the same manner as A-Z claims. This includes accepting unsubstantiated, frivolous, or abusive claims”.
It also started requiring product liability insurance from sellers through a new service, Amazon Insurance Accelerator, which offers a selection of trusted providers to shop from. However, the service is only available to US and China based sellers, which means that any international sellers will face an extreme difficulty to obtain the mandatory insurance.
Amazon likely believes this new policy will help to head off new regulations that could impact how it runs its marketplace business. In announcing the news, Amazon stated that it’s “going far beyond our legal obligations and what any other marketplace service provider is doing today to protect customers” — a message clearly meant to dissuade further regulation.
The changes will roll out initially in the U.S., Amazon says.
Here is a screenshot of the full announcement:
Here is a copy of the full text in English:
| Expanding A-to-z Guarantee to protect customers and sellers (US) Dear Selling Partner, Over the years, we have worked together to earn customers’ trust by providing them with a great experience – offering the products they want, ensuring great prices, and providing fast and convenient delivery. The A-to-z Guarantee, which covers the timely delivery and condition of products sold in our store, has also been important to our mutual growth by providing customers with peace of mind when purchasing from sellers. Today, we are expanding our A-to-z Guarantee to protect both customers and sellers in the unlikely event a defective product sold through Amazon.com causes property damage or personal injury. Beginning September 1, we will: 1. Offer an efficient process for both parties to resolve such claims. 2. Pay valid claims less than $1,000 and not seek reimbursement from sellers who have valid insurance. 3. Make it easier for sellers to buy insurance at competitive rates through Amazon Insurance Accelerator. With these innovations, we are enabling customers to shop even more confidently in our store, driving more opportunity for you to continue to grow your business. Amazon expands A-to-z Guarantee to efficiently resolve defective product claims for customers and sellers Previously, in the rare case that a customer believed a defective product caused property damage or personal injury, customers approached sellers directly to try to resolve their claim. We have heard from both sellers and customers that the experience can sometimes be frustrating. We have consulted with insurance experts and built a new process to facilitate resolution in a more efficient manner for all parties involved. Beginning September 1, 2021, for products sold through Amazon.com, Amazon will facilitate resolution of property damage and personal injury claims between the customer, the seller, and their insurance provider. Customers can contact Amazon Customer Service and we will notify the seller and help them address the claim. If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller. If a seller rejects a claim we believe is valid, Amazon may also step in to address the customer concern; in these cases, sellers will continue to have the opportunity to defend their product against the claim. This streamlined process will save time, money, and effort for both customers and sellers. By standing behind customers and the products in our store, regardless of who sells them, we will help customers feel more confident shopping at Amazon and from sellers like you. When a customer files a claim, Amazon will combine our advanced fraud and abuse detection systems with external, independent insurance fraud experts to analyze the claim. We will present valid claims to sellers and deny unsubstantiated, frivolous, or abusive claims. By doing this work on behalf of sellers, we save you from having to investigate these claims on your own. You can read about the process in full here: https://sellercentral.amazon.com/gp/help/GTY6NYZDFD5CENYH Amazon pays for claims under $1,000, saving sellers time and money Amazon will resolve and pay for valid property damage and personal injury claims against sellers under $1,000 as a concession to customers. Claims under $1,000 account for more than 80% of cases in our store, and Amazon will bear these costs and not seek reimbursement from sellers who abide by our policies and hold valid insurance. These concessions will not affect your order defect rate, and you will be kept informed at every step so you can continue to ensure your products are safe. Amazon updates seller insurance requirements and launches Insurance Accelerator, making it easier and more affordable for sellers to protect their businesses Amazon has a long-standing requirement that sellers obtain product liability insurance and name Amazon as an additional insured once they reach $10,000 in sales for three consecutive months on Amazon. We are updating this requirement and effective September 1, 2021, our Business Solutions Agreement will require sellers to obtain product liability insurance and name Amazon as an additional insured once you reach $10,000 in sales in one month on Amazon.com. If you are a new seller or are an existing seller looking for a new policy, we have worked with an insurance broker to create Amazon Insurance Accelerator, a network of vetted insurance providers to help you easily and affordably secure liability insurance. These insurers can evaluate and if appropriate, offer liability insurance at competitive rates to qualifying sellers. We will continue to expand Amazon Insurance Accelerator to include more providers over time. You can learn more and contact the providers here: https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance/page/InsuranceEstablishment/global/render If you already have insurance, please confirm it is up-to-date and saved on the Business Insurance page in Seller Central: https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance/page/InsuranceEstablishment/global/render?view=up. Amazon stands behind you and the hundreds of millions of products our sellers offer customers. With the expanded A-to-z Guarantee, we’re proud to continue to partner with you to provide customers with peace of mind every time they shop in our store and to help you increase sales and grow your businesses. Thank you for your continued partnership, |
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