Amazon to Pay Customers Up To $1,000 in Damages for Defective Items

Amazon will soon start paying customers up to $1,000 if a defective item sold through its site by a third-party merchant causes property damage or personal injury.

Amazon hopes that working directly through its own personnel for small claims will make the process less stressful and more efficient.

Amazon to Pay Customers Up To $1,000 in Damages for Defective Items

“Customers can contact Amazon Customer Service, and we will notify the seller and help them address the claim,” Amazon explained. “If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller.”

The e-commerce giant said that the move to settle smaller claims by itself “will save time, money, and effort for both customers and sellers.”

Amazon’s new approach to claims will launch in the U.S. at the start of next month, with other countries to follow.

The new policy will come into effect on September 1, 2021, and is designed to give shoppers on the online marketplace greater confidence when placing orders with third-party sellers.

In a message about the move posted on Tuesday, August 10, Amazon said that it will pay customers directly for claims under $1,000, noting that these account for 80% of all such cases.