Amazon has announced one of its biggest fee cuts for European sellers, a direct response to growing pressure from Chinese ultra-discount platforms Shein and Temu. The company said on Tuesday that it will reduce referral fees for low-priced fashion items starting in mid-December, aiming to defend market share as customers flock to cheaper alternatives.
The move highlights a shifting landscape in European e-commerce, where rock-bottom prices and rapid delivery from Asian competitors have reshaped the expectations of millions of consumers.
A strategic move against fast-rising rivals
Amazon will drop referral fees on clothes and accessories to 5% from 7% for items priced up to 15 euros or 15 pounds. For items priced between 15 and 20 euros or pounds, fees will fall to 10% from 15%. The reductions take effect on December 15 across major European markets.
Shein currently charges a 10% referral fee in the European Union and 12.24% in the United Kingdom, although new sellers pay nothing during their first 30 days. The company has rapidly expanded in Europe by offering tops for as little as 3 euros and jeans priced below 9 euros. Temu has adopted similar aggressive pricing tactics, challenging both fast-fashion chains and traditional e-commerce leaders.
Amazon said it is lowering costs thanks to operational improvements, adding that it intends to pass those savings directly to sellers. The European e-commerce market remains highly competitive, with revenue expected to rise 7% this year to nearly 900 billion euros, according to Ecommerce Europe.
The company will widen its fee reductions early next year. From February 1, referral fees on home goods up to 20 euros or pounds will fall to 8% from 15%. Fees will also drop for pet clothing, groceries and vitamins. Amazon will further cut fulfilment charges by an average of 0.32 euros or 0.26 pounds across Germany, France, Italy, Spain and the UK starting December 15.
The adjustments reflect Amazon’s push to reinforce its dominance in countries like Germany and France while defending against competitors that have reshaped consumer habits through relentless discounting.
