Overview

Amazon operates a structured claims resolution process designed to handle situations where a defective product sold through its marketplace causes property damage or personal injury. Known as the A-to-z Claims Process, this program provides a streamlined alternative to costly litigation for both customers and sellers. Understanding how this process works is essential for every Amazon seller, as it directly affects your financial obligations and account standing.

Key Points / What Sellers Need to Know

• Claims under $1,000 may cost you nothing — Amazon will resolve small claims through customer concessions at no cost to you, provided you have uploaded valid proof of commercial liability insurance.
• Claims over $1,000 require direct involvement — For larger claims, you or your insurance provider must handle the resolution directly with the customer within 30 days.
• Proof of insurance is your best protection — Sellers who maintain and upload valid insurance documentation avoid out-of-pocket reimbursement obligations on smaller claims and get larger claims routed directly to their insurer.
• Response deadlines are strict — You must respond to claim notifications within 7 days, and you generally have 30 days to work toward a resolution on larger claims.
• Amazon filters out bad-faith claims — Independent claims adjusters review submissions to screen out fraudulent, abusive, or frivolous claims before sellers are notified.
• Your legal rights are preserved — Participating in this process does not waive any of your rights or defenses, and you can always contest Amazon's resolution decisions.

How the Process Works

When a customer files a property damage or personal injury claim, Amazon engages independent third-party claims adjusters to investigate the situation and filter out illegitimate submissions. Only claims that appear to have merit are forwarded to the seller. The handling process then diverges based on the dollar amount of the claim. For claims at or below $1,000, Amazon takes the lead on resolution and covers the cost as a customer concession — as long as you carry the required insurance. For claims exceeding $1,000, the responsibility shifts to you and your insurer to negotiate directly with the customer.