On 2/12, Amazon announced "one of the biggest fee reductions" it would implement starting mid-december. This strategic move primarily targets sellers of low-priced fashion and accessories across Europe, signaling Amazon's intent to intensify its competition with fast-growing rivals.

Under the new policy, referral fees for products priced at 15 euro (17,4 USD) and 15 pounds (19,8 USD) or less will decrease by 2%, bringing them down to 5%. Additionally, fees for products ranging from 15-20 euro or 15-20 pounds will drop from 15% to 10%.

"We are reducing costs through operational improvements and new innovations", Amazon stated, emphasizing its commitment to offering competitive pricing for sellers.

Amazon packages at a warehouse in New Jersey, US, 12/2025. Photo: Reuters

The decision comes as shopping apps like Shein and Temu (China) have rapidly gained global popularity in recent years. These platforms are renowned for their extremely affordable goods, with items such as t-shirts priced at just 3 euro and jeans at 8 euro. Their emergence has compelled traditional European retailers and e-commerce giants to re-evaluate their pricing strategies. Shein and Temu's business model thrives on very low product prices, optimized supply chains, and efficient sales networks operating with thin profit margins.

For comparison, Shein's current referral fees for its website in the European Union (EU) are 10%, and approximately 12,24% in the UK. New sellers on Shein also benefit from a 30-day fee-free period.

Looking ahead, Amazon also announced that from 2/2026, it would further reduce referral fees for household products from 15% to 8%. This reduction applies to products priced at 20 euro or 20 pounds or less. Similar fee adjustments are planned for pet care, grocery, and vitamin categories.

Effective 15/12, storage, packaging, and delivery fees will also see an adjustment, averaging 0,32 euro and 0,26 pounds in key European markets including Germany, France, Italy, Spain, and the UK.

Despite the rise of new competitors, Amazon currently dominates the e-commerce market in Germany, France, and other European countries. The broader European e-commerce sector is projected to grow by 7%, with an anticipated revenue of 900 billion euro this year, according to the European E-commerce Association.

Ha Thu (according to Reuters)