Finance
Amazon cuts seller fees in Europe in Shein, Temu price war
Published by Global Banking & Finance Review®
Posted on December 2, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 2, 2025
2 min readLast updated: January 20, 2026
Amazon reduces seller fees in Europe to compete with Shein and Temu, focusing on fashion and home products. The move aims to pass savings to selling partners.
By Helen Reid
LONDON, Dec 2 (Reuters) - Amazon is cutting the fees it charges sellers in Europe as it responds to competition from marketplaces like Shein and Temu that sell clothes, homeware and gadgets at rock-bottom prices.
The move, which Amazon said in a statement on Tuesday was one of its largest ever fee reductions, is focused first on lowering fees for sellers of cheap fashion.
It cuts the referral fees Amazon charges on clothes and accessories to 5% from 7% for items up to 15 euros ($17.41) or 15 pounds ($19.79), and to 10% from 15% for items between 15 and 20 euros or pounds, effective from December 15.
Shein charges sellers a referral fee of 10% for its European Union sites and 12.24% for Britain, according to its website, with zero referral fees for new sellers for the first 30 days.
"As we continue to lower our cost to serve through operational improvements and innovation, we are passing on greater savings to our selling partners," Amazon said.
Shein, which sells tops for 3 euros and jeans for as little as 8.20 euros, has taken market share from European fast-fashion retailers and challenged Amazon with its marketplace selling everything from duvet covers to vacuum cleaners.
Amazon is the dominant ecommerce platform in Germany, France, and other European countries, in a market where revenue is expected to grow 7% to hit 900 billion euros this year, industry association Ecommerce Europe forecast.
Additionally, Amazon said that it would cut referral fees from February 1 for home products to 8% from 15% for items up to 20 euros or pounds, as well as cutting fees on pet clothing, grocery and vitamins.
It will also reduce fulfilment fees for parcels by an average of 0.32 euros or 0.26 pounds in its Germany, France, Italy, Spain, and British stores from December 15.
($1 = 0.8615 euros)
($1 = 0.7578 pounds)
(Reporting by Helen Reid; Editing by Alexander Smith)
A referral fee is a commission paid to a seller or service provider for directing a customer to a business or service. In ecommerce, it typically applies to sales made through online platforms.
Ecommerce refers to the buying and selling of goods and services over the internet. It encompasses various business models, including retail, wholesale, and consumer-to-consumer transactions.
Market share is the percentage of an industry's sales that a particular company controls. It is an important indicator of a company's competitiveness and market position.
Operational improvements are changes made to enhance the efficiency and effectiveness of a company's processes. This can involve streamlining workflows, reducing costs, or improving service delivery.
A fee reduction is a decrease in the amount charged for services or transactions. Companies may lower fees to attract more customers or respond to competitive pressures.
Explore more articles in the Finance category
