What Is Section 3 of Amazon`s Business Solutions Agreement

By December 20, 2020 No Comments

For unbilled orders, you authorize Amazon Payments, Inc. to act as an agent to process payments, refunds, and adjustments to your transactions, receive and retain sales proceeds on your behalf, transfer proceeds of sales to your bank account, charge your credit card, and pay Amazon and its affiliates amounts you may receive under this Agreement or other agreements, that you can have with Amazon partners. For invoiced orders, you authorize: (a) Amazon Capital Services, Inc. to act as an agent for the purposes of processing payments, refunds and adjustments for your transactions, as well as receiving and retaining the proceeds of sales on your behalf; and (b) Amazon.com LLC Services to act as an agent to transfer the proceeds of sales to your bank account, charge your credit card, and pay Amazon and its affiliates any amount you owe under this Agreement or any other agreement you may have with Amazon affiliates. Amazon Payments, Inc., Amazon Capital Services, Inc., and Amazon.com Services LLC are each an “Amazon Payment Agent.” The respective Amazon Payments Agents provide the services described in these Transaction Processing Service Terms of Service and the related services described in Sections S-1.4, S-2.2, S-5, and F-8.3 of the Agreement (collectively, the “Transaction Processing Services”). If the gross proceeds of your transactions exceed the insurance threshold applicable each month for a period of three (3) consecutive months or otherwise, if requested by us, then within thirty (30) days thereafter, for the remainder of the term, you will purchase general insurance, umbrella or deductible for each applicable selected country with the insurance limits per event and in total for liabilities, those caused by or in connection with the operation of your business, including products, completed products/surgeries, and personal injury, with policies that identify Amazon and its assignees as additional insureds. Upon our request, you can provide us with insurance certificates for coverage at the following address: c/o Amazon, P.O. Box 81226, Seattle, WA 98108-1226, Attention: Risk Management. While Section 3 sounds super mysterious and legally scary, it doesn`t. Amazon only defines the steps it can take if a seller violates the agreement. In 2021, many customers were suspended at Riverbend, and Section 3 is mentioned for various suspension reasons. Why does Amazon suddenly include it? This agreement, also known as BSA, is the policy that all sellers accept when they sign up to sell on Amazon. Each seller “signs” it digitally when signing up, signaling their willingness to follow Amazon`s guidelines.

You can view the current BSA here. This agreement is Amazon`s Seller Terms of Service (TOS) and talks about everything Amazon is responsible for, what sellers are responsible for, and Amazon`s powers (spoiler: that`s a lot). As always, with any contract, read it in full. Amazon claims damages: In the new Business Solutions agreement, Amazon bypasses this well-published 30-day announcement. We don`t know what “harm” means. Does this mean that the $4.99 people use to buy the toy is the damage, or is it some kind of physical harm? We have successfully demonstrated that Amazon cannot prove any actual damage in arbitration. And we need to incorporate that into our proxies because Amazon claimed in one case that they lost $2 million. How much did Amazon earn the week before? I do not have that number. How much did Amazon earn next week? Has Amazon made more money week after week, quarter after quarter in the last 10 years? The answer is always yes. So you can`t do any harm. So if Amazon claims to be hurting him, I think that opens the door to a lot of compelling arguments by using its own contractual issues in your action plans, which I think is a very good idea.

With this, it is better that you keep the content very clear and concise. Specify exactly what is required of you, especially the cause, the actions you will take to resolve the problem, and the steps you will take to prevent the same thing from happening again. It is more than likely that Amazon felt it would reduce litigation or attempts at arbitration by “showing” sellers where they violated this extended agreement in the broadest sense. He may also think that such official language will discourage some sellers from appealing the closure of their account. Every day I can see desperate sellers begging for help on social media, which are clearly seller accounts, but no one can provide them with adequate help. The Business Solutions Agreement (BSA) is the control agreement between each Amazon seller and Amazon. .