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HalfofThe > Blog > News > Amazon pays customers up to $1,000 in damages for defective items?
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Amazon pays customers up to $1,000 in damages for defective items?

Bippin
Last updated: 2021/09/23 at 9:39 PM
By Bippin Published August 11, 2021
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3 Min Read
Amazon pays customers up to $1,000 in damages for defective items?
Amazon pays customers up to $1,000 in damages for defective items?
Amazon pays customers up to $1,000 in damages for defective items?

What is the new Amazon claim initiative? In a recent announcement, it is made clear that Amazon pays customers up to $1,000 if a product sold through its website by a third-party merchant causes property damage or personal injury. The world’s largest online retailer has pledged to cover the cost of such claims which comprise 80% of cases in its store without seeking reimbursement from the third-party seller as long as they had adhered to Amazon’s rules and hold valid insurance.

Few instances where a consumer claims an amount overrun the company’s $1,000 limit. Amazon says it might step in to pay claims for higher amounts if the seller is unresponsive or rejects a claim we believe to be valid. Until now, consumers who filed a claim related to an item bought from a third-party seller had to go through the merchant. Amazon does hope that working directly through its own personnel for small claims will make the process less taxing and more coherent.

Amazon pays customers sounds good, but How will the process pan out?

Consumers will contact Amazon Customer Service, Amazon will notify the seller and assist them to address the claim. If a seller doesn’t respond to the claim, Amazon would step in to directly address the pressing consumer concern, will bear the cost, and independently course the seller. No reimbursement would be demanded from sellers who stick to its policies and hold valid insurance. As a means to support sellers, the company launched Amazon Insurance Accelerator that will offer assistance to find liability insurance at competitive rates.

To protect itself from fraudulent claims Amazon will deploy its fraud and abuse detection systems with external, independent insurance fraud experts who carefully examine each claim. The e-commerce colossus believes that the move to settle smaller claims on its own will prove to be time, money, and effort-saving for both consumers and sellers.

When is it expected to be in effect? Amazon’s new approach to claims will be launching in the U.S. at the start of next month and other countries to follow. If you liked this article (or if it helped at all), please leave us a comment below or share it with friends, so they can understand the new Amazon claims response.

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