Amazon Expands A-to-Z Guarantee and Introduces New Tools for Sellers

In this article, we’ll be unwrapping the latest Amazon announcements set to impact sellers on the platform.

First up, Amazon is expanding its A-to-Z Guarantee for customers in the EU, UK, and Canada, offering protection in the event that a defective product causes property damage or personal injury—this service is already live in the US.

Additionally, brands can now add size charts using a new self-serve tool, streamlining the process of providing accurate sizing information. Another similar development is the rollout of Fit Insights, a tool that provides apparel and shoe brands with fit-specific data to better meet customer sizing expectations and reduce returns.

Lastly, Amazon introduces the Package Decision Engine, an AI-driven solution using deep machine learning, natural language processing, and computer vision to determine the most efficient packaging for each product.

Let’s delve into how these changes could impact your business.

1. Amazon’s A-to-Z Guarantee Adds Property Damage and Personal Injury Coverage for Customers in the EU/UK and Canada

Amazon’s recent expansion of the A-to-Z Guarantee to include customers in the EU/UK and Canada marks a significant improvement in consumer protection, previously available only in the US.

This expansion means that customers in these regions are now covered for property damage or personal injury caused by defective products purchased through Amazon. The coverage applies to all physical products, including those sold by Amazon’s two million selling partners.

Taking Steps to Mitigate Risks

Amazon’s decision to expand its A-to-Z Guarantee to cover personal injury claims in the EU, UK, and Canada likely stems from several factors:

Legal Liability and High-Profile Cases: There have been numerous lawsuits against Amazon and other marketplaces due to damages and injuries from defective products. Notable incidents, such as the hoverboard fires and the tragic death caused by a teething necklace bought on Etsy, have heightened awareness and concern over product safety, resulting in Amazon’s increased desire to mitigate legal risks.
Proactive Risk Management: By including property damage and personal injury claims in its A-to-Z Guarantee, Amazon aims to protect itself from liability and ensure a safer shopping environment. This move helps Amazon manage potential risks and reduce the chances of facing significant legal battles and associated costs.
Insurance Requirements for Sellers: Amazon requires sellers to have valid commercial liability insurance when their sales exceed a certain threshold (e.g., $10,000 sales in one month on Amazon.com). This ensures that sellers are financially responsible and capable of covering claims related to their products. For sellers sourcing from reputable producers, this should not be a problem. However, where product testing and certification might be inadequate, some sellers could face difficulties securing insurance.
Mitigating the Risk of Unbranded and High-Risk Goods: Some sellers might struggle to find insurers willing to cover unbranded, high-risk goods. This suggests that such products might not be safe to sell, and without insurance, they pose a significant financial risk to sellers. By enforcing insurance requirements and managing customer claims, Amazon can reduce the likelihood of unsafe products being sold on its platform.
Boosting Consumer Confidence: Expanding the A-to-Z Guarantee to include property damage and personal injury claims helps enhance shopper confidence. Customers are more likely to trust a marketplace that offers comprehensive protection against defective products. This added layer of security reassures buyers that Amazon stands behind the safety and quality of the products sold on its platform.

Amazon’s expansion of the A-to-Z Guarantee to cover personal injury claims in additional regions is a strategic move to manage legal risks, enforce product safety standards among sellers, and boost consumer trust in its marketplace.

How the Updated A-to-Z Guarantee Works

The A-to-Z Guarantee aims to simplify the resolution of property damage and personal injury claims for both customers and sellers. If a defective product causes damage or injury, customers can file a claim by contacting Amazon’s Customer Service.

Amazon then facilitates the resolution process by notifying the selling partner and assisting them in addressing the issue.

For claims under €1,000 / £1,000 / CAD$1,000, Amazon may directly compensate the buyer at its discretion, provided the claim is proven to be valid. Amazon handles these smaller claims without seeking reimbursement from the seller, as long as the seller has valid insurance and adheres to Amazon’s policies.

For claims exceeding €1,000 / £1,000 / CAD$1,000, Amazon will work with the seller to verify the claim and ensure the buyer is compensated.

Impact on Sellers

Liability Management

By taking on the investigative and resolution responsibilities, Amazon reduces the burden on sellers to handle claims independently, allowing them to focus more on their core business operations.

However, as you may already know, the Amazon marketplace is littered with returns scams, one of which involves dishonest customers falsely claiming that a product caused injury for financial gain. Unfortunately, this type of fraud can be particularly serious and can have significant repercussions for sellers.

For instance, a customer buys an electric kettle and claims it malfunctioned, causing boiling water to spill and burn them. They provide fake photos of burns and medical reports.

Amazon reviews the claim, and due to the serious nature of injury claims, might prioritize the customer’s safety and issue a refund or compensation quickly to avoid legal complications, often before thoroughly verifying the claim.

The seller then loses the sale, incurs costs, and faces potential reputation damage, which brings us to the next point.

Insurance Requirements

Sellers must maintain a valid commercial liability insurance policy that covers each Amazon country site where they sell. While this may mean additional costs, this can help sellers better prepare themselves to handle potential claims, protecting their financial interests.

In addition, implementing processes to verify the authenticity of injury claims, such as requesting detailed documentation and evidence, is just as important to deter fraudulent activities.

Reputation and Customer Satisfaction

The A-to-Z Guarantee helps sellers build a positive reputation by ensuring that any issues with defective products are resolved swiftly and fairly, enhancing overall customer satisfaction.

Overall, sellers should be proactive in understanding and complying with Amazon’s insurance requirements to avoid any liability issues. It’s crucial to source products from reputable suppliers who have proper certifications and insurance, particularly when dealing with high-risk or unbranded goods. Failure to comply can result in financial liabilities and impact to the seller’s standing on Amazon.

2. Amazon’s New Tool for Adding and Refining Size Charts

Amazon’s new self-serve size chart tool is designed to help brands enrolled in the Brand Registry easily add and refine size charts for their products. Here’s how the new tool works and how it benefits sellers:

How the Tool Works

Automatic Enrollment: Brands enrolled in the Brand Registry are automatically granted access to the size chart tool upon registration.
Convenient Features:
- Refinement of Existing Charts: Sellers can refine and enhance existing Amazon size charts.
- Template Usage: Pre-existing size chart templates are available for creating new size charts, streamlining the setup process.
- Bulk Application: Sellers can apply a single size chart to as many as 1,000 ASINs across various product types simultaneously.
- Real-Time Instructions: The tool provides real-time guidance to improve the accuracy and relevance of size charts.
Accessing the Tool: To use the tool, go to Seller Central > Catalog drop-down menu > Add size charts.

Benefits for Sellers

Improved Customer Experience: Accurate and relevant size charts help customers make better purchasing decisions, reducing the likelihood of returns due to sizing issues.
Efficiency and Scalability: The ability to apply size charts to multiple products at once saves time and effort, particularly for sellers with large catalogs.
Enhanced Product Listings: Refined and precise size charts make product listings more informative and attractive, potentially increasing conversion rates.
Real-Time Adjustments: The tool’s real-time instructions ensure that size charts are always up-to-date and accurate, enhancing customer trust and satisfaction.

In summary, this new self-serve tool helps sellers enhance their product listings with detailed size information, leading to a better shopping experience for customers and potentially boosting sales.

3. Sellers in Europe and India Can Now Access Fit Insights Tool

Amazon’s Fit Insights tool is designed to help apparel and shoe brands in EU and India improve their product sizing accuracy, thereby reducing return rates and enhancing customer satisfaction.

This advanced tool leverages artificial intelligence and machine learning to analyze various data points, including returns data, size charts, and customer feedback on fit, quality, and price.

How it Works

Data Analysis: Fit Insights uses AI and machine learning to scrutinize returns data and customer feedback, offering a comprehensive analysis of size-related issues.
Product Categorization: The tool categorizes products by their return health, ranging from very poor to excellent, enabling brands to swiftly identify and prioritize updates to their listings.
Benchmarking: It compares the return rates of a brand’s products against best-in-class benchmarks for similar products, helping brands understand how their items stack up in the market.
Customer Insights Summary: Fit Insights provides a summary of both positive and negative customer feedback, giving brands a clearer understanding of customer preferences and pain points.
Size Chart Recommendations: The tool offers specific recommendations to resolve size chart issues and better align with customer sizing expectations.

Why Use this Tool

Improved Customer Satisfaction: By refining size charts based on data-driven insights, brands can meet customer sizing expectations more accurately, leading to higher satisfaction.
Reduced Returns: Enhanced sizing accuracy directly contributes to fewer returns, saving costs and improving overall efficiency.
Informed Decision Making: Brands can make better-informed decisions regarding their product listings and sizing, backed by comprehensive AI-driven analysis.
Competitive Edge: Understanding how their products compare against market benchmarks allows brands to stay competitive and make necessary adjustments to maintain or improve their market position.

For additional information, visit Fit Insights tool page.

4. Amazon Introduces AI-Driven Packaging to Reduce Waste, Sellers Voice Concerns

The eComm giant’s new AI model, the Package Decision Engine, leverages deep machine learning, natural language processing, and computer vision to determine the most efficient packaging for each product.

This system aims to reduce packaging waste while ensuring product protection.

For instance, the AI can identify when durable items like blankets can be shipped with minimal packaging or when fragile items like dinner plates need sturdier boxes. This approach has contributed to a significant reduction in packaging materials, saving over 2 million tons worldwide since 2015.

Why Sellers Should Care

Efficiency and Sustainability: The AI optimizes packaging decisions, which helps to reduce the use of cardboard boxes, air pillows, tape, and mailers. This can lead to a smaller environmental footprint.
Scalability: Prior to the AI implementation, packaging decisions were made through physical testing, which was not scalable. The Package Decision Engine automates this process, allowing for more consistent and efficient packaging decisions across a vast number of products.
Focus on Other Challenges: By automating packaging decisions, Amazon associates can redirect their efforts towards other sustainability challenges, potentially leading to more innovative solutions in the future.

Seller Reactions

Despite the intended benefits, many sellers on the news announcement page have voiced their dissatisfaction with the current performance of the Package Decision Engine. Comments from sellers highlight ongoing issues with inappropriate packaging sizes and insufficient protection:

Overly Large Packaging: Sellers have reported receiving returns in boxes that are far too large for the products, leading to damage during transit. This suggests that the AI may need further refinement to better match box sizes to product dimensions.
Insufficient Protective Measures: Instances of fragile items being shipped in inadequate packaging, such as bubble mailers for expensive teacups or video game consoles, have been mentioned. These cases indicate that the AI’s decisions may sometimes lack the necessary protective measures, resulting in damaged goods and dissatisfied customers.
AI Limitations and Human Oversight: Some sellers believe that common sense and human oversight should still play a crucial role in making packaging decisions, especially for unique or high-value items. There is a call for Amazon to allow seller feedback on packaging to improve the system.

While Amazon’s Package Decision Engine aims to enhance packaging efficiency and sustainability, the feedback from sellers indicates a need for ongoing adjustments and improvements.

Ensuring that the AI can balance reducing waste with adequately protecting products is important for maintaining seller trust and customer satisfaction. As Amazon continues to refine this technology, incorporating seller feedback and enhancing the AI’s decision-making capabilities will be essential steps toward achieving optimal packaging solutions.

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Chelsea Cohen

Chelsea Cohen is an Amazon seller, speaker & consultant. An Amazon expert, her regular clients include 7 & 8-figure sellers. She has been featured on AM/PM Podcast, 7-Figure Sellers Summit, and the Prosper Show & Amazing Summit stages, among others.