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Expandly Blog

Amazon Demands Seller Insurance From the First Sale

The USD 10,000 a month trigger disappears on 2 November 2026, and the cost of entering a regulated category on Amazon goes up with it.

In This Article

01 What changes on 2 November
02 Which categories are caught
03 Why launch costs shift forward
04 The wider platform liability trend
05 Your checks before November

Key Takeaways

► USD 1 million cover required from 2 November 2026
► The USD 10,000 monthly sales trigger is removed
► Cosmetics, ingestibles and batteries are all in scope
► Category entry costs now land before first revenue

Launching a cosmetic, a supplement or a battery-powered product on Amazon gets more expensive on 2 November 2026. From that date, sellers in Amazon's enhanced-safety categories must carry at least USD 1 million in per-occurrence and aggregate commercial liability cover, whatever their sales volume. The rule that only bit once a category passed USD 10,000 in monthly gross proceeds is being removed.

USD 1 million Minimum per-occurrence commercial liability cover required in enhanced-safety categories from 2 November 2026. Source: Amazon via EcommerceBytes, 10 September 2026.

Children's products, cosmetics and ingestibles, and lithium battery products are the categories named. Those are also, not by accident, the categories that carry the heaviest regulatory load in Europe. A brand in any of them is already dealing with notification regimes, ingredient restrictions, labelling requirements and a named responsible party. Insurance is now another fixed cost of entry, payable before the first unit sells rather than after the category proves itself.

For a brand testing a new line, that changes the maths. The old rule let you validate demand cheaply and insure once the category earned it. The new one asks for the premium up front. Sellers based in mainland China have a further constraint and must obtain cover through Amazon's own Insurance Accelerator programme, though existing third-party policies can run to expiry.

The wider signal is worth reading. Platforms are moving liability towards sellers across the board, and they are doing it by tightening eligibility rather than by policing listings after the fact. A brand that treats compliance as something to sort out once volume arrives will keep meeting doors that only open the other way round.

This change applies to the Amazon US marketplace. Nothing in the announcement extends it to Amazon's European marketplaces, but the direction of travel is the same one European regulators have been pushing for several years.

  • Check whether any current or planned product falls into children's products, cosmetics and ingestibles, or lithium battery categories.
  • Get a quote before 2 November 2026 rather than after a listing is suspended.
  • Build the premium into the launch cost of a new category, not into its second year.
  • Treat this as a US marketplace change and check each European marketplace's requirements separately.

Expandly builds product compliance and channel eligibility into onboarding, so a category opens rather than closes when you reach it.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled. We’ve supported 2,000+ brands make the move.

Find out more
  • VAT registration handled across UK, Germany, Netherlands and all EU markets
  • EPR compliance managed from day one — packaging, WEEE, batteries and beyond
  • Product label review and Responsible Person service for EU and UK market entry
  • Amazon EU, bol.com, Zalando and DTC integrations — all channels, one platform
  • Dedicated onboarding, compliance and success team alongside the platform
  • 17 years' experience, 2000+ brands expanded — Andy Hooper, Founder

The bigger picture

Insurance Before First Sale Regulated Categories Cost More

Amazon requiring USD 1 million of cover in cosmetics, ingestibles and battery categories from 2 November 2026 moves a cost that used to arrive with scale to the day a listing goes live. The same categories carry the heaviest European requirements, where a brand needs notification, ingredient compliance, labelling in local languages and a named responsible party in place before anything can legally be sold. Expandly's onboarding is compliance-first, and for a brand in these categories the first step is a product compliance review that establishes what each destination market requires and who holds the responsibility. Settling that early costs less than discovering it through a suspended listing.

  • The prior rule only required cover once a seller passed USD 10,000 in monthly gross proceeds in the category; that trigger is removed on 2 November 2026
  • Expandly provides the EU Responsible Person designation for cosmetics, supplements and electronics as part of compliance setup
  • A brand that waits for volume before arranging compliance meets eligibility gates that block the volume from arriving

European Marketplace Share

Marketplaces account for 61 per cent of total European ecommerce gross merchandise value. For most US brands entering Europe, marketplace eligibility rules are not a side issue, they are the route to market.

61%

Marketplace share of total European ecommerce GMV in 2025. Ecommerce News EU and Cross-Border Commerce Europe.

Minimum Liability Cover

Sellers in enhanced-safety categories must hold at least USD 1 million in per-occurrence and aggregate commercial liability cover. Sellers based in mainland China must source it through Amazon's Insurance Accelerator programme.

2 Nov 2026

Date the volume-based exemption is removed on the Amazon US marketplace. Amazon via EcommerceBytes, 10 September 2026.

Marketplace-Ready at Launch

Every marketplace in Europe has its own compliance and listing requirements. Expandly handles setup and integration for each channel so your products are ready to sell from day one.

2,000+

brands launched with Expandly

If this sounds like your world,
let's talk.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled.

Self-Serve

  • £1,150/month
  • Platform-led with email support
  • Best for: $1M–$5M brands

Guided

  • £3,000/month
  • Dedicated Account Manager
  • Best for: $5M–$20M brands

VIP

  • £5,000/month
  • Dedicated VIP Consultant
  • Best for: $20M–$50M+ brands
See full pricing and what's included