Amazon cuts seller fees in Europe amid rising competition from Shein & Temu

Amazon has announced major fee reductions for sellers in Europe as it faces increasing competition from ultra-cheap marketplaces like Shein and Temu.

Key Fee Reductions

Effective December 15:

  • Clothing & Accessories
    • Items up to €15/£15: referral fee cut from 7% → 5%
    • Items €15–20/£15–20: referral fee cut from 15% → 10%

Effective February 1:

  • Home products under €20/£20: fee cut from 15% → 8%
  • Fee reductions also coming for:
    • Pet clothing
    • Grocery items
    • Vitamins

Fulfillment Fees

  • Starting December 15, Amazon will reduce Fulfillment by Amazon (FBA) parcel fees by:
    • €0.32 in EU countries (Germany, France, Italy, Spain)
    • £0.26 in the UK

Why Amazon is Cutting Fees

  • Shein and Temu have aggressively expanded in Europe with ultra-low prices and low seller commissions.
  • Shein currently charges:
    • 10% referral fee in the EU
    • 12.24% in the UK
    • 0% for new sellers for the first 30 days
  • Amazon says the reductions are possible due to operational improvements and that it is “passing savings” to sellers.

Market Context

  • Amazon remains the top e-commerce platform in major European markets like Germany and France.
  • Europe’s online retail market is expected to grow 7% to reach €900 billion this year.