Amazon is reducing the fees it charges sellers in Europe in a bid to counter growing competition from marketplaces like Shein and Temu, which offer clothing, homeware, and gadgets at very low prices. The move, announced on Tuesday, is one of Amazon’s largest fee reductions and initially targets sellers of budget fashion items.
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From December 15, referral fees for clothing and accessories will drop to 5% from 7% for items up to 15 euros ($17.41) or 15 pounds ($19.79). For items priced between 15 and 20 euros or pounds, fees will fall to 10% from 15%. Shein currently charges referral fees of 10% for EU sites and 12.24% for the UK, offering zero fees for new sellers during the first 30 days.
“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. The company also said it would reduce referral fees for home products, pet clothing, groceries, and vitamins from February 1, along with cutting fulfillment fees for parcels by an average of 0.32 euros or 0.26 pounds in Germany, France, Italy, Spain, and the UK.
Shein has attracted customers with ultra-low prices, such as tops for 3 euros and jeans for 8.20 euros, challenging Amazon’s dominance in European markets. Amazon remains the leading e-commerce platform in Germany, France, and other European countries, where total revenue is expected to reach 900 billion euros this year, according to Ecommerce Europe.
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The fee reductions aim to help Amazon retain sellers and remain competitive in Europe’s fast-growing online marketplace.