This update went into effect as of September 1, 2021.
Amazon recently announced an update to their A-Z Guarantee, in which Amazon protects buyers who purchase items directly sold and fulfilled by a third-party seller. This ensures that customers have a consistent experience across the marketplace, covering the timely delivery and condition of the product.
With Amazon’s focus on customer service and satisfaction being the utmost importance, this guarantee allows customers to confidently purchase directly from sellers.
The new update to their A-Z claims policy protects customers in the rare instance where a defective product is sold through Amazon.com that may cause property damage or personal injury, regardless of whether Amazon or a third-party seller sold those defective items.
A-Z Claims Policy Update
As of September 1, 2021, Amazon will allow customers to make product liability claims via Amazon customer services using the A-Z Claims Process. For customer claims under $1000, which accounts for over 80% of cases, Amazon will resolve the claim through a concession, at no cost to sellers, provided proof of insurance.
According to Amazon:
“Beginning September 1, 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.”
When a claim is above $1000, Amazon will notify the seller of the claim and it will be transferred directly to the insurer. From there, Amazon will require updates and if the claim is resolved, a release form must be provided. However, if Amazon feels there is an “unwarranted delay”, are not responding to the claim, or deny a claim that they believe to be valid, Amazon will then step in to resolve the situation and seek reimbursement from the seller or the insurer.
Amazon also stated:
“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 Seller Expectations
If you own and operate a Seller Central account, Amazon is requiring you to update your insurance. To do this, log in to the primary user for your account, and click Settings in the upper right corner. Under business information, click Business Insurance. Click Add New Policy, and fill out the information, including Insurance Provider Name, Name of Insured (which must match the legal entity name on your Amazon account), your policy number, the start and end dates of the policy, and lastly, upload your certificate of insurance. Click submit, and your policy will be added to your account.
With the constant updates in online marketplaces, it’s important to get acquainted stay up-to-date with the latest changes. Review the policy help page, or if you are looking for additional information, contact your strategist or schedule a consultation with our team.
For more updates on the Amazon marketplace, visit our full Amazon Tips content gallery.
For additional details on the announcement and the policy, please see the links below.