Amazon has announced a reduction in seller fees across a range of popular categories. Fulfilment by Amazon (FBA) fees will also decrease in many European countries. The lower fees will apply to items such as low-priced clothing and home products. This move is part of Amazon’s strategy to compete with platforms like Shein and Temu.
According to Amazon, the average fee reduction per unit sold across Europe will be 0.17 euro, made possible by “continued innovation and operational improvements”. The changes include new FBA fulfilment fee reductions for parcels, expanded low-price FBA eligibility, and referral fee reductions in high-volume categories such as clothing and accessories, home products, groceries, vitamins, and pet clothing and food.
Fee reductions
Some of the new fees will take effect on December 15, while others will change on February 1 of the new year. Notably, the price reductions only apply to items priced up to 20 euros. In the home products category, for example, the commission drops from 15 percent to 8 percent on sales up to that amount, allowing Amazon to become more competitive in the low-price segment.
Referral fee reductions apply only to items up to 20 euro
Amazon Haul
To tackle the rapidly growing competition from Asian platforms, Amazon launched its own discount platform, Haul, in the US last year, featuring “ultra-low-priced products”. Haul then expanded to Europe, with launches in the United Kingdom, Germany, France, Spain, and Italy. Amazon’s discount storefront is now available in the five largest ecommerce markets in Europe.
Most Haul products come from partners in China
Notably, most of the products on Haul come from partners in China, whom Amazon has specifically invited. These unbranded goods are often shipped directly from Chinese factories to the West. Amazon officially acts as the seller (first-party).
Western third-party sellers
With the upcoming fee changes, Amazon aims to stimulate the Western supply side of the market in the US and Europe. The company wants to make selling on Amazon more attractive for EU-based SMEs, which sold over 1.3 billion products worldwide through Amazon last year. “We are committed to ensuring that selling in Amazon’s store remains the best way for these businesses to thrive”, the company states about “one of our largest-ever fee reductions”.
