LONDON, Dec 2 – Amazon is implementing significant reductions in its seller fees across Europe as it seeks to maintain competitiveness against rising marketplaces such as Shein and Temu, which offer clothing, home goods, and gadgets at extremely low prices. The announcement made Tuesday highlights this initiative as one of Amazon’s most extensive fee reductions, primarily targeting sellers of inexpensive fashion.
Effective December 15, the referral fee for clothing and accessories will be decreased from 7% to 5% for items priced up to 15 euros ($17.41) or 15 pounds ($19.79). Additionally, the fee for products priced between 15 and 20 euros or pounds will drop from 15% to 10%.
Shein currently charges a referral fee of 10% for its EU sites and 12.24% for the UK market, offering new sellers an enticing incentive with zero referral fees for the first month.
“As we continue to lower our cost to serve through operational improvements and innovation, we are passing on greater savings to our selling partners,” Amazon said.
Shein has gained a foothold in the market by offering competitively priced items, such as tops for 3 euros and jeans for as low as 8.20 euros, taking business away from European fast-fashion retailers while challenging Amazon’s extensive marketplace range, which includes everything from duvet covers to vacuum cleaners.
Despite heightened competition, Amazon remains the dominant e-commerce platform in countries like Germany and France. The market is expected to grow by 7%, reaching an impressive 900 billion euros in revenue this year, according to industry group Ecommerce Europe.
In addition to the fashion sector, on February 1, Amazon plans to cut referral fees for home products from 15% to 8% for items priced up to 20 euros or pounds, with similar reductions for pet clothing, groceries, and vitamins.
Furthermore, Amazon will lower fulfillment fees for parcels by an average of 0.32 euros or 0.26 pounds in its stores across Germany, France, Italy, Spain, and the UK from December 15, signaling a strategic shift aimed at enhancing the appeal of its marketplace amid the ongoing market competition.
These Amazon seller fee reductions are aimed at making it easier for sellers to succeed in a challenging environment, reinforcing Amazon’s commitment to adapt to market challenges.
