Amazon Cuts Seller Fees in Europe to Compete with Shein and Temu in Low-Cost Retail
Amazon lowers marketplace fees for fashion and home goods in Europe, aiming to keep sellers competitive against fast-growing platforms Shein and Temu.
Key Highlights
Amazon has announced major reductions in the fees it charges sellers in Europe, a move aimed at responding to growing pressure from low-cost competitors such as Shein and Temu. Both fast-growth platforms have been attracting shoppers with ultra-cheap clothing, homeware and electronics, creating a pricing challenge for Amazon in regions where it maintains a strong e-commerce presence.
The company said these cuts represent one of its biggest fee reductions to date and will initially target the fashion category. Starting December 15, referral fees on clothing and accessories priced up to €15 (or £15) will drop from 7% to 5%. For products priced between €15 and €20 (or £15–£20), the rate will be lowered from 15% to 10%.
Shein currently charges sellers 10% in the European Union and just over 12% in the United Kingdom, with zero referral fees for new sellers for the first month, according to its seller portal. Its aggressive discounting — including tops for around €3 and jeans for under €9 — has helped the company take volume from European retailers while expanding into a broad marketplace model similar to Amazon.
Amazon emphasized that the decision aligns with its operational efficiency improvements, stating that cost savings will be passed directly to sellers who rely on its marketplace.
The e-commerce giant remains the leading online retail platform in key markets such as Germany and France. Industry group Ecommerce Europe projects online retail revenue in the region will grow about 7% this year, reaching €900 billion.
Further fee cuts are scheduled beginning February 1, when seller charges for home products up to €20 (or £20) will be reduced to 8% from 15%. Additional reductions will apply to items in pet apparel, grocery, and vitamins.
Fulfillment fees will also be trimmed across Amazon’s stores in Germany, France, Italy, Spain, and the UK — decreasing by roughly €0.32 or £0.26 per parcel from December 15 — as Amazon attempts to maintain price competitiveness and seller loyalty amid a tightening marketplace battle.
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