You may have heard that last month, customers who bought a bestselling mattress sold on Amazon sued the manufacturer, Zinus Inc., amid claims that the product has caused significant damage to their health due to fibreglass fibres being released from it. As Amazon sellers, this is a nightmare scenario. Getting sued means lawyers, payouts, courtrooms and damage to your name and reputation. For many sellers, this could be the end of their store and business. You might be wondering if all of this could have been prevented. The question is- could this lawsuit have been predicted?
The answer is yes! Spott has the unique ability to use data to predict claims. That may sound revolutionary so we will explain. As experts on everything related to eCommerce and insurance, it’s our business to know how to avoid getting sued as an eCommerce seller. In the case of Zinus Inc mattresses, the writing was on the wall long before the lawsuit came in August 2022. Spott’s data-driven solution indicated back in 2019, that Zinus Inc. and their Amazon store, were at high risk of being sued.
How do we know this you might ask? Our data-driven risk calculator looks at a wide array of factors that contribute to a store’s health in order to determine what are the chances of a claim being made against the store. Spott analyses data such as reviews, components of products, manufacturing regulations, and much more. All this data gives stores a unique risk score, granting greater visibility regarding the likelihood of getting into trouble.
Spott’s risk calculator will be launched in 2023. With this service, Amazon sellers will be able to check the risk score of their store with just the click of a button. It will revolutionize the way eCommerce sellers understand their businesses, giving them granular visibility and total control over how they make decisions and manage their stores. By taking action and protecting their stores, Amazon sellers will be able to significantly reduce the likelihood of being involved in a lawsuit. If you want to make sure you don’t miss out on the calculator’s release, sign up below for our newsletter.
In the meantime, don’t be lazy about your insurance. It’s time to make sure your store is covered no matter what. Save up to 30% today on your Amazon liability insurance and go to sleep knowing that you’re 100% covered.