U.S. tech titan Amazon (AMZN) is slashing seller fees in Europe as part of a price war with resurgent Chinese rival Shein (PC:SHNQX).
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Pet Clothing Fees
Amazon said that in 2026, it will lower fees by an average of £0.15/€0.17per unit sold across Europe. The changes include fulfilment fee reductions for parcels, and referral fee reductions in high-volume categories like clothing and accessories, home products, grocery, vitamins, and pet clothing and food.
It described it as one of its largest-ever fee reductions.
As part of the move it is cutting the referral fees Amazon charges on clothes and accessories to 5% from 7% for items up to €15 ($17.41) or £15 ($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.
Taking the Shein Off
Shein, which sells tops for €3 and jeans for as little as €8.20, 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 this year, according to industry association Ecommerce Europe.
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 in its Germany, France, Italy, Spain, and British stores from December 15.
This is an important move by Amazon given the importance of Europe, mainly Germany and the U.K. to its overall revenues – see below:
Shein is forecasting $2 billion in net income for 2025, nearly double last year’s $1.1 billion profit. It is being helped by price adjustments and tighter cost controls that offset lower traffic linked to U.S. trade policies.
It also recently opened its first store inside the BHV shop in Paris.
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