Skip to site menu Skip to page content

Daily Newsletter

05 December 2025

Daily Newsletter

05 December 2025

Amazon slashes seller fees in bid to compete with Shein, Temu

Amazon is set to cut seller fees in Europe by 2% to 5%, suggesting it is exploring ways to compete with ultrafast-fashion e-tailers such as Shein and Temu.

Hannah Abdulla December 05 2025

“Continued innovation and operational improvements enable us to provide greater value for our selling partners with an average fee reduction of £0.15/€0.17 per unit sold across Europe,” Amazon said in an update to sellers.

Today, more than 60% of the sales in Amazon’s store come from independent sellers – most of which are small and medium-sized businesses. EU-based Small and Medium-Sized Enterprises (SMEs) sold over 1.3bn products worldwide through Amazon last year.

“These entrepreneurs are creating an estimated 350,000 jobs across the EU, many in rural areas. We are committed to ensuring that selling in Amazon's store remains the best way for these businesses to thrive.”

The following changes will go into effect on December 15, 2025, in all European stores unless otherwise noted:

  • Building on the parcel fee decreases introduced in 2025, Amazon will further reduce FBA fulfilment fees for parcels by an average of £0.26/€0.32 in its United Kingdom, Germany, France, Italy, and Spain stores. 
  • Amazon will reduce referral fees for Clothing and Accessories from 8% to 5% for items at and up to £15/€15, and from 15% to 10% for items between £15/€15 and £20/€20. 

The following changes will go into effect on February 1, 2026, in all European stores:

  • Amazon will reduce referral fees for Home Products (new category) from 15% to 8% for items priced at and up to £20/€20, Pet Clothing and Food from 15% to 5% for items up to £10/€10 and Grocery and Gourmet and Vitamins, Minerals and Supplements (new category) from 8% to 5% for items up to £10/€10.  
  • Amazon will extend its reduced Low-price FBA rates in most categories to products priced at or below £20/€20, lowering FBA fees for these newly eligible products by an average of £0.40/€0.45 per unit.  
  • Amazon will lower caps on variable fees for Best Deals and Lightning Deals to £200 in the United Kingdom, €300 in Germany, and €100 in France, Italy, and Spain. This change builds on the November update to reduce the variable rate and add a cap for coupons. 

“This update [to seller fees] reflects the work we have done for years to optimise our operations and fulfilment network. As we continue to lower our cost to serve through operational improvements and innovation, we are passing on greater savings to our selling partners, providing them with an even greater value by selling in Amazon’s store. These reductions also align European fees with changes we have made in other countries, including in the US, as we continue to drive our costs to serve lower around the world.”

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close