Amazon made two seller policy changes this holiday season. Since November 2, 2026, sellers with products in enhanced safety categories need $1 million in liability insurance no matter how much they sell. Starting December 18, 2026, US returns on seller-fulfilled orders need a prepaid return label.
Neither rule hits every seller the same way. Here’s how to tell whether each one applies to you.
What is Amazon’s new insurance requirement for sellers?
As of November 2, 2026, Amazon requires sellers with products in categories with enhanced safety listing requirements to carry commercial liability insurance. Coverage must be at least $1 million per occurrence and in aggregate, regardless of sales volume.
Before this change, most sellers only needed insurance after their Amazon.com sales passed $10,000 in a month. That rule still applies. The new rule adds a second trigger based on what you sell, not how much.
Which products need insurance regardless of sales?
Amazon’s enhanced safety categories include children’s products, cosmetics, ingestible products, and lithium battery products, among others. Amazon says the list will grow, and the full version sits in Seller Central.
The rule covers existing listings, not just new ones. A seller doing $2,000 a month in toys or supplements who never needed a policy now does.
What counts as qualifying coverage?
A general business policy doesn’t automatically qualify. Amazon sets minimum limits, insurer requirements, and rules for how your business appears on the policy. Check your existing policy against Amazon’s terms before assuming you’re covered.
Amazon reportedly emails affected sellers and gives them 45 days to submit proof of coverage before it can deactivate enhanced safety listings.
Note for sellers based in mainland China: since November 2, Amazon only accepts new policies bought through its Amazon Insurance Accelerator. Compliant policies submitted earlier stay valid until they expire.
What is Amazon’s December 18 prepaid return label rule?
Starting December 18, 2026, all US returns on seller-fulfilled orders need a prepaid return shipping label. Heavy and bulky items are excluded for now.
Address-only labels, where the customer pays return postage, will no longer meet Amazon’s requirement.
What sellers must do within seven days
Within seven calendar days of a return request, you must do one of two things:
- Upload a prepaid return label through Amazon’s Manage Seller-Fulfilled Returns workflow, or
- Issue a full refund without requiring the item back.
The clock starts at the return request, not when the item arrives. If you miss the window, Amazon may issue a returnless refund and deduct it from your account.
Who needs to change their process?
If Amazon already generates prepaid labels for your returns, nothing changes for those orders. The rule mainly affects sellers who use address-only labels or handle exempt returns manually.
This is Amazon’s second returns change in 2026. In February, it ended the high-value exemption and moved US seller-fulfilled returns into its prepaid label program.
One heads-up: as of late October, Amazon’s seller help pages didn’t yet mention the December 18 change. The details come from Amazon’s email to sellers.
Why does the December 18 timing matter?
Amazon accepts returns on holiday orders placed between November 1 and December 31 until January 31. That means most holiday returns will arrive after December 18, under the new rule, and refunds can keep coming out of your account into February.
Prepaid labels also cost money. One estimate puts them at $12 to $18 for mid-range items. On a $15 product, the label alone can wipe out the profit, so a returnless refund may make more sense.
Decide your rule now: which products you’ll take back with a prepaid label and which you’ll refund without a return. Then assign someone to watch return requests daily so none slip past the seven-day window during the holiday rush. Our guide to eCommerce order fulfillment covers how to keep those workflows organized as order volume grows.
What should Amazon sellers check now?
For the insurance rule (in effect now):
- Compare every ASIN you sell, including low-volume listings, against Amazon’s enhanced safety category list in Seller Central.
- If any match, confirm your policy meets Amazon’s $1 million minimum and other terms.
- Submit proof of coverage in Seller Central, and watch for Amazon emails about affected listings.
For the return label rule (before December 18):
- Check whether Amazon already generates prepaid labels for your returns.
- If you use address-only labels, set up prepaid labels before December 18.
- Set a threshold for when a returnless refund costs less than a prepaid label.
- Assign someone to review return requests daily through January 31.
Frequently asked questions
What are Amazon’s new seller policy changes for 2026?
Amazon made two changes for the 2026 holidays. Since November 2, sellers with products in enhanced safety categories need $1 million in liability insurance regardless of sales. From December 18, US seller-fulfilled returns need a prepaid return label.
Do all Amazon sellers need $1 million in liability insurance?
No. Sellers need it if their Amazon.com sales top $10,000 in a month, or if they sell any product in an enhanced safety category. Other sellers below the sales threshold don’t need it.
Which Amazon categories require insurance regardless of sales?
Amazon’s enhanced safety categories include children’s products, cosmetics, ingestible products, and lithium battery products, among others. Check the full list in Seller Central against each of your listings.
When does Amazon’s prepaid return label rule start?
The rule starts December 18, 2026, for US returns on seller-fulfilled orders. Heavy and bulky items are excluded for now.
What happens if I don’t provide a prepaid return label within seven days?
Amazon may issue a returnless refund to the customer and deduct the amount from your account. You’d lose both the sale and the product.
Does the December 18 rule affect FBA sellers?
No. The rule covers seller-fulfilled (FBM) orders. Fulfillment by Amazon orders follow Amazon’s own FBA returns process.
Can I keep using Amazon-generated prepaid return labels?
Yes. If Amazon already creates prepaid labels for your returns, those keep working. The change mainly affects sellers using address-only labels.
Small rules, real consequences
Insurance paperwork and return labels won’t make anyone’s list of favorite holiday tasks. But a deactivated listing in December or a stack of automatic refunds in January costs far more than an hour of checking now.
If you sell on Amazon alongside other channels, each marketplace keeps adding its own rules. Keeping orders, returns, and shipping in one place makes them easier to stay on top of.
Selling on Amazon and other channels? See how Ordoro works with Amazon to manage orders, returns, and shipping in one place.
