StockX and GOAT are platforms built to avoid issues requiring insurance by sellers. This is a benefit of selling on those sites. The seller and buyer remain anonymous throughout the transaction, placing the burden upon StockX and GOAT to maintain a friction free exchange. While this appears to be a benefit, the amount of money a seller can generate is also hindered using StockX and GOAT. The seller isn’t utilizing any business savvy or decision making in building the business via StockX and they can’t really establish a business in the way sites like Urban Necessities and Stadium Goods eventually became global brands and resale outlets using eBay as a base.
While sellers don’t make as much on StockX and GOAT as they can on eBay or Amazon, the seller doesn’t have to encounter issues like I did leading me to write this post:
Do Not Sell Sneakers on Amazon, the Return Policies are Terrible for Small Biz
When I delivered the post above, it was in regard to Amazon’s return and refund policies. I failed to also discuss the most recent requirement by Amazon, business insurance for sellers. As Amazon goes, other platforms adjust and adapt. Could other sneaker resale platforms begin to require, business license, business insurance for sellers? If so, does this benefit StockX and GOAT? Possibly. Below is the e-mail Amazon sent to sellers this morning. What do you think?
Hello,
This is to remind you to provide proof of liability insurance for the products you sell through Amazon within 30 days of receiving this email.
Why did I receive this message?
As of September 1, 2021, under section 9 of the Business Solutions Agreement, you must obtain and maintain at least $1 million of commercial general, umbrella, or excess liability insurance, within 30 days after exceeding $10,000 in gross sales proceeds in a month on Amazon or if otherwise requested by Amazon. For more information, go to Business Solutions Agreement:
https://sellercentral.amazon.com/help/hub/reference/G1791.
What do I do next?
Upload your Certificate of Insurance (COI) as proof of liability insurance coverage within 30 days of receiving this email. The COI is issued by your insurance company and details what is covered, the amount of coverage, and any exclusions or deductibles.
Where do I submit my proof of liability insurance?
To upload your COI, go to “Settings” in Seller Central and click “Account Info” then select “Business Insurance” under the “Business Information” widget. The document can be uploaded in .pdf, .doc, or .docx format.
What are the insurance requirements?
Your commercial liability insurance policy must meet all the following criteria:
1. The policy limit must be at least $1 million per occurrence and in aggregate, and cover liabilities caused or occurred in conjunction with your business operations, including products, products or completed operations and injury.
2. The insurance policy type can be either commercial general, umbrella, or excess liability and be based on occurrence.
3. Your insurance provider must have global claim handling capability and a financial rating of S&P (https://www.spglobal.com/ratings/en/sector/insurance/insurance-sector) A- or AM Best
(https://www.ambest.com/home/default.aspx) A- or better (if S&P or AM best is not valid, a local equivalent is allowed).
4. Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification or nonrenewal.
5. The policy must name “Amazon.com Services LLC and its affiliates and assignees” as additional insureds.
6. The deductible for any policy must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance.
7. The policy must cover all sales from products you have listed on Amazon.
8. Your insured name must match the “legal entity” name you provided to Amazon. To view your legal entity name, go to: https://sellercentral.amazon.com/sw/AccountInfo/LegalEntity/step/LegalEntity.
9. The policy must be complete in its entirety and signed.
