Amazon cuts seller fees in Europe in Shein and Temu price war

Amazon is cutting the fees it charges sellers in Europe in response to competition from marketplaces like Shein and Temu that sell clothing, home goods and gadgets at rock-bottom prices. The move, which Amazon said in a statement Tuesday was one of the largest fee reductions in its history, focuses first on reducing fees for sellers of cheap fashion.

Reduces the referral fees that Amazon charges on clothing and accessories from 7% to 5% for items up to 15 euros ($17.41) or 15 pounds ($19.79), and from 15% to 10% for items between 15 and 20 euros or pounds, starting December 15. Shein charges sellers a 10% referral fee for its European Union sites and 12.24% for Great Britain, according to its website, with no referral fees. for new sellers during the first 30 days.

“As we continue to reduce our service costs through operational improvements and innovation, we are passing on greater savings to our seller partners,” Amazon said.

Shein, which sells T-shirts for €3 and jeans for just €8.20, has taken market share from European fast fashion retailers and challenged Amazon with its marketplace that sells everything from duvet covers to vacuum cleaners. Amazon is the dominant e-commerce platform in Germany, France and other European countries, in a market where revenue is expected to grow 7% to €900 billion this year, industry association Ecommerce Europe predicted.

Additionally, Amazon said it would reduce referral fees starting February 1 for household products from 15% to 8% for items up to 20 euros or pounds, in addition to reducing fees on pet clothing, groceries and vitamins. It will also reduce package fulfillment fees by an average of 0.32 euros or 0.26 pounds in its stores in Germany, France, Italy, Spain and Great Britain from December 15.