Efdcargo Co., Ltd.
Efdcargo Co., Ltd.

From September 1st!sellers With Monthly Sales of 10000 on Amazon Need to Buy Insurance!

In order to improve the confidence of buyers buying products from Amazon, Amazon officially announced on August 10 that in order to improve the buyer's shopping experience, Amazon Mall transaction protection will be extended to protect buyers and sellers.

Starting September 1, 2021, Amazon will:

1. Provide both parties with an effective process for resolving such claims.
2. Pay valid claims under USD 1000 and will not seek compensation from sellers with valid insurance.
3. With the help of Amazon Insurance Accelerator, sellers can more easily purchase insurance at a competitive price.

Facing the promulgation of Amazon's New Deal, how should we deal with it effectively?

1. Under what circumstances do I need to insure?

On Amazon America, if the store falls under any of the following circumstances, you need to provide proof of insurance:

①Before September 1, 2021, sellers on Amazon.com for three consecutive months have reached a monthly total sales income of more than 10000 USD.
②Before September 1, 2021, the seller has reached a monthly total sales income of more than $10000 in any month in Amazon.com's history.
③If Amazon requires you to provide proof of insurance, even if the seller does not meet the "sales income on Amazon.com exceeding $10,000" requirement, you still need to provide proof of insurance.

2. Does the store that receives the email have to purchase insurance?

—-The store that receives the email must process the upload within 30 days. After the new regulations come into effect on September 1, If stores that receive the email do not provide policy review within one month, Amazon may take measures, such as restricting sellers from selling products of a specific category, or even suspending the seller's account, until proof of insurance is provided.

3. The sales meet the target requirements, but Amazon has not sent an email notification. Do I still need to buy it?

—-It is necessary. Commercial insurance must be purchased if the sales meet the requirements, regardless of whether or not the email notification is received.

4. How to buy insurance? Do I have to use an insurance company designated by Amazon?
—-It can be purchased through the Amazon accelerator program or insurance company, or through other Chinese insurance companies that meet the platform qualification requirements.

5. Can all products be insured?
—-The following products belong to the excluded categories and cannot be insured: automobiles, power banks, pesticides, large construction machinery, and equipment, etc.

6. What information is required for insurance?
—-Product list, product usage/function, sales area, product certificate or inspection report, estimated annual sales, past annual sales records, and whether there are claims records, etc.

7. How long does it take to apply for insurance?
—-It takes about 2-3 working days for the information to the insurance company to issue the insurance certificate, and about 4-5 working days for the insurance certificate to be submitted to Amazon for review.8. How much is the premium?
—-After receiving the insurance materials, the insurance company will give a quotation referring to the product category and sales volume. It is understood that the price ranges from $260 to $1000. The policy is valid for one year, and the policy is renewed the following year.

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