Amazon has announced it is expanding its A-to-Z Guarantee that will see the company itself financially compensate buyers if the product they order from a third-party seller physically damages their property or causes physical injury. Amazon will directly compensate customers for claims under $1,000 per product.
In order to be eligible for the compensation, the product must be defective and that defect must be the cause of the damage or injury. Amazon says its new compensation scheme goes “far beyond our legal obligations,” but the company is doing it to help streamline claims made by buyers against third-party sellers. Amazon says the $1,000 threshold will cover 80% of all claims made against third-party sellers.
The company also notes that if Amazon pays out a claim to a customer, the third-party seller will not have to reimburse Amazon for the amount claimed. By taking up to a $1,000 hit on all valid claims, Amazon says it will save both sellers and buyers time, money, and effort—making the Amazon experience that much better for all involved.
The company does note, however, that all customer claims of damage or injury will be fully investigated before any payment is made in order to combat customers looking to game the system. Third-party sellers will also be able to defend their product against any claim as part of Amazon’s investigation before a payout decision is made.
This new A-to-Z Guarantee provision comes into force on September 1 and is available for all third-party products sold on Amazon.com.