Amazon insurance requirements have changed. Do you need insurance if your monthly sales are less than $10,000?

On August 10, Amazon issued a notice that starting from September 1, sellers with sales of $10,000 or more for three consecutive months on Amazon must purchase product liability insurance. Among sellers, issues related to purchasing insurance have also sparked discussion.

With the formal implementation of the regulation on September 1, sellers who meet the requirements have basically completed insurance. The discussion of related topics has gradually decreased, but things seem to have changed recently. Recently, a seller reported that his newly opened store has very few monthly sales, with sales far less than $10,000, but he still received a notice from Amazon asking him to provide proof of insurance.

According to sellers’ feedback, regardless of whether the monthly sales volume meets the requirements, as long as they receive documents from Amazon requesting proof of insurance, they must purchase product liability insurance.

In fact, there have been signs that Amazon is expanding the scope of insured stores. On August 30, a seller received an email, which showed that from September 1, sellers on Amazon will need to provide proof of insurance if their monthly sales exceed $10,000. Even if the monthly sales are less than $10,000, sellers must purchase insurance if they receive a request from Amazon to provide proof of insurance. Monthly sales of $10,000 is not a hard and fast indicator.

According to the information provided by the seller, part of the email is as follows:

On Amazon US, if you meet the following conditions, you must purchase and maintain commercial liability insurance and upload your insurance certificate on the Amazon "Commercial Liability Insurance" page:

1. Before September 1, 2021, the seller has achieved total sales revenue of more than US$10,000 per month on Amazon.com for three consecutive months;

2. After September 1, 2021, the seller's total monthly sales revenue on Amazon.com exceeds US$10,000 in any month in history;

3. If Amazon asks you to provide proof of insurance, you still need to provide proof of insurance even if you do not meet the requirement of "sales revenue on Amazon.com exceeds US$10,000".

It is understood that since October 11, a seller has revealed that three of his accounts have received requests to provide insurance certificates. In the past two days, another batch of accounts have received the same request. It seems that Amazon is likely to expand the scope of insured stores in the near future.

From what we know from various sources, if the seller receives a reminder from the backend case, then they need to purchase insurance. If it is just an email received in the mailbox, then they do not need insurance for the time being. Depending on the seller's sales, product category, and insurance form, most sellers' insurance costs range from a few hundred yuan to several thousand yuan, and the insurance period is one year.

According to Amazon’s previous notice, if sellers fail to purchase valid insurance in a timely manner, they are likely to be restricted from selling goods in specific categories or even have their accounts suspended.

In addition to the current problems, some sellers also said that the cost of backup numbers is getting higher and higher. In order to prevent their stores from being suddenly closed, many sellers have more than one backup number. If comprehensive insurance is really required, the cost of each account will be hundreds to thousands per year, which is indeed a considerable expense.

Regardless of the reason, sellers should still be prepared, pay attention to their backstage case prompts, and understand the insurance process and precautions to avoid the impact of untimely insurance or insurance failure on their store operations. It is understood that Ping An Insurance is currently used and recommended by sellers. After insurance, Ping An customer service can help modify it until it is approved.

Amazon

Insurance

Seller