Amazon is making major moves to stay competitive in Europe as online rivals like Shein and Temu offer low-cost fashion and home products. The company announced on Tuesday that Amazon cuts referral and fulfillment fees for sellers, marking one of its largest fee reductions ever.
The fee reductions will first target sellers of inexpensive clothing and accessories. Referral fees on items up to 15 euros ($17.41) or 15 pounds ($19.79) will drop to 5% from 7%. For items priced between 15 and 20 euros or pounds, fees will fall to 10% from 15%. These changes take effect on December 15.
Shein currently charges sellers a 10% fee for its EU sites and 12.24% for the UK. The platform also offers new sellers zero fees for their first 30 days. Amazon hopes its cuts will help retain and attract sellers, especially in the budget fashion segment where Shein has gained market share.
“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 in a statement.
In addition to fashion, Amazon cuts fees for home products starting February 1. Referral fees for items up to 20 euros or pounds will fall from 15% to 8%. Fees will also decrease for pet clothing, groceries, and vitamins.
Amazon will reduce fulfillment fees by an average of 0.32 euros or 0.26 pounds in Germany, France, Italy, Spain, and the UK from December 15. These changes come as European e-commerce revenue is projected to grow 7% to 900 billion euros this year.
Industry experts say Amazon cuts are a strategic response to intense competition in the European market. By lowering fees, the company aims to support small sellers while maintaining its dominant position in countries like Germany and France. The changes are expected to benefit both sellers and consumers with more affordable products across the platform.
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