Amazon Cuts Fees for European Sellers Amid Rising Competition

Strategic Cost Reduction

Amazon has implemented significant fee reductions for sellers in Europe as part of a broader strategy to maintain market share against growing competition from fast-fashion retailers Shein and Temu. The changes, effective December 15, represent one of Amazon's most substantial cost-cutting measures in the region.

Key Changes in Fee Structure

The e-commerce giant has lowered referral fees for fashion products in Europe as follows:

• For products priced up to €15 or £15, referral fees have been reduced to 5% from 7%
• For products priced between €15-€20 or £15-£20, fees have been cut to 10% from 15%

These changes primarily benefit sellers of affordable fashion items, allowing them to maintain competitiveness against emerging platforms known for their low-price strategies.

Market Context and Competitive Landscape

The fee reduction comes as Amazon faces increasing pressure from fast-fashion marketplace competitors Shein and Temu, which have gained significant traction in Europe by offering clothing, home goods, and electronics at highly competitive prices. Amazon's decision reflects a strategic response to these market developments, demonstrating the company's commitment to retaining its seller base and maintaining market share in a rapidly evolving e-commerce landscape.