How Amazon suspension insurance can protect against the pitfalls of the popular marketplace
No online marketplace can rival Amazon in terms of reach for third-party sellers - but success on the hugely popular site can come at a cost for businesses.
Selling on Amazon can result in huge and rapid growth spurts, especially should you be selected as an “Amazon Choice” and find you products at the top of non-paid searches.
That can be great - but it also leaves your business open to equally rapid decline and major cash-flow issues should you find yourself unable to sell for a variety of reasons, some which may be out of your control.
That is where Amazon suspension insurance through Thompson and Holt can help.
Managing director Craig Gedey explained: “Amazon is also a rapidly changing operation, where amendments in policy and rules can leave businesses that aren’t fully up to speed vulnerable to suspension.
“Every year, Amazon introduces changes that move the landscape for sellers. As a third-party seller, you always have to be thinking one step ahead and what the changes could mean to your business.
“Amazon has more than one million third-party sellers, making up over 50 percent of their overall business, but its focus is primarily on its customers, which can be frustrating for sellers.
“And selling through them can have other negatives, including a lack of service, customer data and insights, and a tendency to change course without communication.”
Thompson and Holt’s “Monitor, Protect and Insure” service is for Amazon sellers of all sizes, and can pay up to £50,000 to cover overheads while we work on reinstating your account.
It provides a free Amazon Seller Account Suspension Appeal, and covers three product suspension appeals per month if you need them.
Managing director Gedey said: “The cover is designed to protect and reimburse online traders, who through no fault of their own, have their trading account or accounts suspended or cancelled.
“That provides considerable peace of mind for businesses that can fall foul of suspensions despite running their operations correctly.”
But the cover goes further than just protecting your business against the worst case scenario.
The system will notify you immediately about negative feedback, so you can reach the buyer immediately and resolve the issue in the quickest possible time.
It includes real time alerts that warn you about any health and policy violations that could lead to a suspension, meaning you can correct them immediately.
It also provides instant email notifications about all major actions by your competitors, such as changes in price, if they are out of stock or if there is a lost buy box.
The policy tracks new defects found by Amazon in your listings to avoid sales loss, improving your business’s chances of winning the 'Amazon Buy Box'
And it will protect your private label by sending instant emails when other sellers sell your product, and notify you immediately when other sellers begin to sell on your listing.
Gedey added: “The service’s monitoring tool could significantly aid your Amazon business even if you never experience an unwanted suspension. The benefits that brings to businesses are significant and far reaching.
“Our cover is protected by ArgoGlobal at Lloyd’s of London and we believe it provides an unrivalled service for businesses on the Amazon platform.”
If you want to learn more about Thompson and Holt’s ground-breaking product, you can look at our frequently asked questions section, and full details on how to apply for the cover here.
Business must have been trading for at least a year, and can claim for any suspensions that last more than five days from the notification of the suspension, subject to terms and conditions.