Amazon's insurance renewal email has arrived! Sellers: Expect the premium to be doubled

Recently, the Amazon insurance incident has again attracted the attention of many sellers. Many sellers said they had received emails from Amazon, some of which reminded sellers to renew their insurance and purchase insurance if they meet the conditions.

In this regard, sellers who are renewing their insurance said they cannot afford it, and they expect the premium to be almost doubled this year, while sellers who have received news of purchasing insurance said they are considering whether to purchase it. After all, the sellers who were previously banned due to insurance scams and lost premiums due to invalid POE policies are still fresh in their minds.

Insurance costs are going to double again? Sellers can’t afford it

Recently, some sellers received an email about Amazon’s commercial liability insurance renewal. The email content stated, “According to system records, your insurance policy has expired or is about to expire. Please upload your new insurance certificate within 30 days of receiving this email .”

When renewing their insurance, a seller checked the quotes of an insurance channel on Amazon's backend and found that the expected premium this year was nearly double that of last August. " Small and medium-sized sellers can't afford it now. Not only are their profits low, but their fees are also rising. Fortunately, Amazon has cancelled the mandatory no-deductible insurance policy, otherwise I don't know how many times the premium would have increased, " the seller said.

The editor consulted relevant professionals and found that the prices for renewing and purchasing insurance on Amazon may be slightly higher. It is recommended to consult directly with a professional insurance company to avoid increasing your insurance costs.

Since last year, Amazon has been tightening its insurance policy step by step. Although it protects the rights of buyers, it also increases the costs of sellers. Many small sellers said frankly: "Insurance costs are as light as a feather for big sellers, but they are particularly important for small and medium-sized sellers. After all, the soaring costs have never come down."

For sellers, the cost of insurance is unavoidable. When many people receive emails from Amazon asking them to purchase insurance, professionals advise them to "buy insurance as soon as possible if you receive a notice from the platform."

Amazon's policy requirements also mention this point : "If you have reached the threshold for purchasing commercial liability insurance, and if Amazon finds that you have not purchased this insurance during the applicable claim period or have not submitted qualified insurance certificates in a timely manner, Amazon may take measures, such as restricting your sales of specific categories of goods, or even suspending your account, until you provide proof of insurance. Please handle it in a timely manner, otherwise it will affect the normal use of your account. "

Of course, this policy of Amazon has also been confirmed by some sellers. The editor learned that some sellers have said that their personal accounts have been suspended because they did not pay insurance , and sellers who encounter this situation are not isolated cases. Once the account is suspended, the losses faced will be like dominoes.

In fact, it is not only Amazon that has issued a commercial liability insurance policy. Wayfair, Walmart and other platforms have also implemented commercial liability insurance. Among them, Wayfair has directly added this insurance to the conditions for sellers to settle in. If you want to settle in its North American site and European and American sites, you need to purchase commercial liability insurance.

(Image source: Wayfair )

Compared with domestic e-commerce business, the cross-border market itself has an extra layer of risk and unpredictability. In order to add some protection to their cross-border business, sellers purchase insurance for their products; and in order to protect the rights and interests of consumers, the platform implements a commercial liability insurance policy. When something goes wrong with the product, commercial liability insurance naturally becomes a "protective umbrella" for both parties.

Product accidents happen frequently, commercial liability insurance becomes a tool for sellers to avoid losses

In recent years, we often see news such as "some products sold on platforms such as Amazon, Wayfair, and Walmart have been recalled", and most of the recalled products have safety hazards. When a safety accident occurs, manufacturers, sellers, and platforms are all responsible, and they will also face high compensation. Among them, Amazon and other platforms are frequent visitors to the dock and have been sued many times, and the amount is not cheap, so they launched commercial insurance.

Many Amazon sellers who purchased Ping An Commercial Insurance last year also avoided most of the losses. One seller said, " A rechargeable heating pad purchased by an overseas consumer and sold by the insured through the Amazon platform caught fire, causing damage to bedding and clothing. The final loss amount was $12,000, the policy deductible was $10,000, and the final case compensation amount was $2,000."

Some professionals pointed out that if the seller purchased no-deductible insurance, the insurance company could almost pay the entire amount, and the proportion the seller needed to pay could be negligible.

In fact, many Amazon sellers buy insurance with no deductibles because they are greedy for cheapness. As a result, when they encounter problems, they still need to pay a considerable amount of fees after the insurance company pays the compensation. Therefore, when buying insurance, sellers should not cause losses because of greed for cheapness.

In addition, many sellers have fallen into traps when buying insurance because they are greedy for cheap prices. It is understood that most sellers chose to buy insurance on Amazon's insurance accelerator earlier, but some sellers, such as unlicensed individual sellers, individual seller stores purchased a few years ago, Hong Kong companies and overseas company stores, etc., are unable to complete insurance online and can only complete insurance offline.

As a result, many sellers found intermediaries to buy insurance. Some fake intermediaries cheated under the banner of low-priced offline insurance, resulting in many uncontrollable situations and even a large number of fake insurance policies, causing sellers to suffer heavy losses.

So how do sellers identify fake policies when they are selling insurance? An industry insider gave his own opinion: First, insurance policies all have policy numbers, which support sellers to verify the authenticity of insurance policies on the official website of the insurance company or through the official customer service phone number. Each insurance policy has a voucher , which can be verified once it is verified; secondly, the collection of insurance requires qualifications, and the premium is paid directly to the insurance company , and should never be paid to a third party individual.

"Commercial liability insurance is another major trend in Amazon's compliance. It is currently only implemented in the US site, and other sites may also join in the future," said a seller. Therefore, for stores that have met the standards or are about to meet the standards, sellers are advised to purchase directly from insurance companies through formal channels as soon as possible.

Of course, for sellers, choosing a reliable insurance company is the top priority. Ping An Insurance, as an officially recognized insurance company by Amazon, Wayfair, Walmart and other platforms, has always insisted on providing sellers with the best services and the most reasonable prices. Whether it is the first time to buy insurance, want to renew insurance, or upgrade insurance, sellers can choose Ping An Insurance.

It is understood that this year's Amazon insurance premiums are not as high as the seller mentioned at the beginning, especially Ping An Insurance, whose premiums start as low as 1,551 yuan, and there are exclusive discounts for big sellers. Sellers who want to know the latest trends in insurance prices, or want to insure or renew their products, please scan /long press to identify the QR code in the poster, or click "Read" below.

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