The buyer protection framework is an essential element of the buyer protection and is therefore a necessary prerequisite for being awarded the trustmark. It determines the maximum financial volume of active protection that can be claimed by your clients at any one time. In particular, this article aims to answer the question of how the buyer protection framework is defined and what you can contribute to this process.
What is the process for defining the buyer protection framework?
Since your shop can only carry the trustmark if you have an active buyer protection framework, the initial allocation of your buyer protection framework is carried out at the beginning of your membership. In this step, Trusted Shops works together with the credit insurer Atradius, which, in partnership Trusted Shops, vouches for the safeguards provided by the buyer protection. As a rule, we use the following formula to define the buyer protection framework:
Your stated online annual turnover: 12 : 3
The annual online turnover you provide during your registration is the basis for calculating the buyer protection framework. We will first divide your online annual turnover by 12 to get the average monthly turnover you generate online. This is explained by the fact that your customers can take advantage of the buyer protection for a standard period of 30 days, i.e. approximately one month. The rate of the buyer protection framework is therefore based on your average monthly online turnover. We additionally divide this value by 3 to include the presumed use of buyer protection by your clientele under the definition of the buyer protection framework.
The initial buyer protection framework for each member is usually 5,000 euros. Among other things, this value shows that the formula given is only a rough guideline. Your buyer protection framework is not calculated to the cent. In addition, in view of the significant default risk, the buyer protection framework for companies with high sales and companies operating in industries with high merchandise values is determined using individual criteria. Sometimes more information about your business is needed for this. If this is the case, we will contact you.
What happens after the allocation of the buyer protection framework?
As soon as your buyer protection framework has been defined, you will be informed of this in a separate e-mail.
Then, you will have taken an important step in your certification and come closer to the trustmark.
Of course, the buyer protection framework communicated in the e-mail is not set in stone for the duration of your membership with Trusted Shops. After all, your business is evolving, so hopefully your sales will increase over the years. In the short term, seasonal effects or successful advertising measures can also lead to a jump in sales. As a rule, such developments also increase the number of buyer protection agreements, so that the buyer protection framework initially estimated may not be sufficient.
First of all, the most important thing is that even if this is the case, your customers can of course continue to claim the buyer protection. When seasonal highlights, such as Christmas or Black Friday, can be foreseen, we will also pre-emptively adjust your buyer protection framework. You will only be informed of this if your cooperation is required.
The situation is different, for example, if your business figures change significantly or the existing buyer protection framework is exceeded consistently or regularly. In these cases, we will work together with Atradius to provide a long-term increase in your buyer protection framework. Should we need further information from you, we will contact you promptly. If processes for checking and securing your credit standing are needed, these will naturally not be visible to your customers. We only communicate about this directly with you.