More than product returns and cart abandonment, third-party sellers on Amazon fear losing sales and access to their accounts due to suspension whether it is valid or not.
Getting banned from Amazon can ruin not only your finances but your life regardless of how long the suspension is.
That especially holds true if you use the Amazon marketplace as your main source of income; you don’t have an eCommerce site, a bricks-and-mortar shop or a regular job for backup.
When you get banned, it’s like you lost a limb as you lose the ability to pay for your everyday expenses.
Various reasons can lead to a third-party seller’s suspension from Amazon: late response or shipment, high order defect rate, high cancelation rate, etc.
There are also painful instances when a seller gets banned not for their own doing, but as a result of their competitor’s devious stratagems.
Did you know there are sellers on Amazon who would go to the extent of paying large amounts of money in exchange for fake reviews on their biggest competition’s product?
It’s a good thing you can do something about that now thanks to the Amazon suspension coverage which some insurance companies offer.
Protect yourself and your business
Anyone can be banned from Amazon without notice regardless of their seller rating or performance metrics.
It is an ordeal which you never want to suffer, but the odds are high that you can avoid it, so might as well find a way to protect yourself and your business just in case it befalls you.
Lloyd’s of London, which has gained global fame by insuring famous celebrities’ body parts, is one of the insurance companies offering insurance plans to compensate sellers for lost sales and expenses during an Amazon suspension.
Businesses of all sizes can be insured; coverage limits range from $ 50,000 to $ 1,000,000 for a period of 30 to 180 days.
Monthly premiums depend on many factors, among them are your annual sales, how long you’ve been selling on Amazon and your average feedback rating.
Even sellers who have been suspended in the past can apply for an insurance coverage, but the reason of their suspension will influence their premiums.
Be reinstated and receive payout
In case you get banned from Amazon, you can get your account reinstated within 72 hours aside from your payout.
The amount you will receive will be based on your average gross sales volume plus regular day-to-day expenses.
Note that your coverage will only take effect after the waiting period which is stipulated in your policy.
During that length of time, you are expected to shoulder your day-to-day expenses, hence classed as your insurance deductible.
If Amazon lifts your suspension before that period is over, you won’t be able to collect money from your policy.
Getting suspended from Amazon is no joke, so it’s good to know that third-party sellers now have an option to preserve what they’ve worked so hard for.
What are you doing to protect your business from the giant?
See you there!
By DariuszSankowski from Pixabay