Amazon Announces Its Largest-Ever Fee Reduction in Europe

Amazon has implemented one of its most comprehensive pricing restructures in recent years, announcing reductions in seller fees and Fulfilment by Amazon (FBA) charges across Europe. The move is widely seen as a strategic response to intense competition from ultra–low-cost marketplaces such as Shein and Temu. The new referral and FBA fees will come into effect gradually in mid-December and early February.

Amazon states that the initiative has been made possible through “ongoing operational efficiencies and technological innovations.” The average commission reduction per item sold in Europe will be €0.17; however, several categories will benefit from significantly larger reductions. Products priced at €20 or below—a segment largely dominated by Asian e-commerce competitors—are at the center of Amazon’s updated fee strategy.

Referral Fees on Home Products Drop from 15% to 8%

Under the new structure, referral fees for home products priced at €20 or less will fall from 15% to 8%. Analysts note that this shift may encourage sellers to offer more affordable products. Apparel, accessories, groceries, nutritional supplements, and pet products are also included in the revised fee categories.

Industry experts stress that Amazon’s aggressive pricing adjustment is closely tied to the rapid expansion of discount-driven platforms. Shein and Temu have gained a strong foothold in Europe’s low-price segment by offering extremely cheap goods shipped directly from Chinese manufacturers.

Rapid Expansion of Amazon Haul

In response, Amazon has been expanding Amazon Haul, the low-cost storefront it launched in the United States last year. Haul is now active in the United Kingdom, Germany, France, Spain, and Italy. A large portion of the thousands of products offered on Haul come from Chinese suppliers specifically invited by Amazon. These unbranded goods are often sold through Amazon’s first-party model and shipped directly from Asia.

However, the new fee reductions also underscore Amazon’s commitment to supporting Western third-party sellers. By lowering operational costs, the company aims to help EU-based small and medium-sized businesses (SMEs) remain competitive in an increasingly price-driven market. European sellers collectively sold more than 1.3 billion products worldwide on Amazon last year, and the company expects that number to rise even further under the new pricing model.

“One of Our Largest-Ever Fee Reductions”

“We want to ensure that Amazon remains the most advantageous platform for businesses to grow,” the company said, describing the update as “one of our largest-ever fee reductions.”

Analysts predict that this fee overhaul may drive broader shifts across Europe’s e-commerce landscape, prompting competing platforms to reassess their pricing strategies and encouraging sellers to diversify their product ranges and expand into international markets.

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