A lot of people just do their initial test order and see if it will just work!
Once Peter was doing $5K a month, he realised the opportunity they were doing.
And taking it seriously, that’s when they got the policy and got themselves covered.
Also, his product was very simple and low risk – it wasn’t a pogo stick or a unicycle.
There’s a big difference between a butter knife and a pocket knife. The latter could cost you about $10K USD for cover.
If you’re early on product research, there’s an Amazon Seller Insurance for you.
In every Amazon marketplace – if you start on 4 marketplaces, theoretically a lot of sellers go to different places.
If you insure via an LLC and you get access to an American agent. It’s cheap but only covers them for the USA.
If you are only selling in the USA, the insurers are familiar with Amazon. There is more competition between insurers in the USA.
However, if you expand internationally, you’re better off with a worldwide cover.
Peter has links to insurers.
Still investigating – because wouldn’t want to sell someone unless you’d buy it yourself.
Still getting feedback from a broker in States, feedback from a lawyer.
Using Amazon lawyers too on Online Sellers Insurance.
In the EU, Amazon is being held accountable for the way they treat their sellers regarding suspensions. They are being placed under a lot of pressure on the EU to be fairer, work With the sellers and arbitration.
If that goes through, that may affect other marketplaces. At that point, suspension insurance becomes more viable.
If you’re getting $250K a month in sales and amazon suspends your account, you’d get 5 day excess. That gives insurance co’s change to work with Amazon.
Then they average out sales over a year – they insure for 80% of that.
There are a few clauses in there where Peter is getting legal advice.
Is this something you really need?
Most people take this out with their Freight Forwarder. If not, they can just do a quick search on the container ship that rolled over in Georgia.
It went through a storm etc. – the whole ship rolled over – the loss was enormous.
We all hear about damaged stock or containers going overboard.
The first rule ALWAYS have insurance.
Save with Annual cover
A great way to save is to organise an annual cover
“A to B cover world to world”
You want to know if your container disappears, it will be covered.
Flexport or Chinese supplier – usually get charged for 1000 units insurance close to $300 USD.
For $200 USD can get 4 shipments a year including accidental damage.
If something goes wrong, you email Peter and he handles the claim for you.
If you go via Freight Forwarder and the container gets dropped, broken -it’s very hard to track down the insurer –
You get an English speaking Amazon seller – and someone in a small business.
Before you get container loaded, you can get a container inspection, just to check the container is watertight – it costs about $100 USD!
Most people get it covered in shipments anyway – covered by Freight Forwarder. But the amount per shipment is much more than a yearly policy.
Primarily those selling on amazon.com – it’s hard to get insurance there! The underwriters offer insurance for everywhere outside the USA and Canada.
They have referral partners in USA, UK, Australia, New Zealand.
But they can help work with you even if you’re not based there.
Sellers based in the USA or elsewhere in the world.
Their worldwide cover is through Lloyds of London.
Not many insurance agents on Amazon.
Australians used to pay $10K for cover – now $1500-2K
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