In a move to protect customers and sustain a valuable brand position, Amazon has recently pledged that it will compensate customers and hold Amazon FBA sellers accountable if any defective products cause injury or damage to property.

Although previously Amazon was extremely reluctant to make itself accountable for any such situations by claiming that the responsibility lay with the seller and not with the selling site, following a series of court cases and with regards to faulty products creating damage or harm to customers, the online giant has come under mounting pressure to introduce this action.

With a change of heart, Amazon has pledged to compensate claim costs of up to $1000 (£720) through its A-Z Guarantee. This tactical change is aimed at creating a more trustworthy and safer experience for customers.

According to a recent article by GeekWire, “Amazon says it spent $18 billion in 2020 on logistics, tools, services, programs and personnel to support third-party sellers”. By adding this new level of customer assistance, is just another aspect of encouraging third party Amazon FBA sellers to trade safely so that they meet customers’ expectations.

How do Amazon FBA Sellers need to protect themselves?

From the 1st September 2021, Amazon FBA Sellers in the US will need to provide documents for proof of product liability insurance. The process will then be rolled out across other countries during the foreseeable future.

If you are a UK Amazon FBA Seller who sells in the UK, Europe and the US, then it is worth pointing out that you will need to be ready for this change. Here at Crendon Insurance, Birmingham, UK, we specialise in supporting UK Amazon FBA sellers and online retailers with Amazon FBA insurance which includes product liability and commercial liability cover. To find out more please contact our team or see our online retail insurance and Amazon FBA insurance pages for more details.

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