Amazon Is Launching An Insurance Marketplace

Marketplaces
Written By Rick Watson

Sometimes the things Amazon does it needs to be dragged kicking and screaming into the future. So it is with Amazon's expansion of its A-Z guarantee. I mean, if Amazon allows a product, profits from its sale, houses the product, and ships it, Amazon has no liability? That doesn't seem right in 2021.

The idea of a marketplace as "just a venue" (Meg Whitman's famous words) has long passed.

The big question is - I am assuming these insurance claims affect the Buy Box. So the question is now, what if a seller rejects the claim, and Amazon accepts it? Amazon is almost certain to penalize the seller for this in terms of the Buy Box.

Filing a claim against a seller doesn't seem like the easiest process in the world.

Hidden in this news is Amazon launching its own insurance marketplace. While this is through Marsh Broker today (I didn't see Amazon name them, but I dug it up), and the portal is not required to be used (you do need insurance though!), it could give Amazon an entry into another high-margin space.

Paging Lina Khan?

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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