Amazon Cuts Seller Fees in Europe Amid Shein and Temu Price War

Amazon Cuts Seller Fees in Europe Amid Shein and Temu Price War — 2 December 2025

On 2 December 2025, Amazon announced significant fee reductions for sellers across Europe, responding to increasing competition from low-priced rivals like Shein and Temu. The move underscores Amazon’s commitment to retaining sellers on its platform while remaining competitive in a market increasingly dominated by budget-focused e-commerce players.

Starting 15 December 2025, Amazon will reduce referral fees on clothing and accessories from 7% to 5% for items priced up to €15 or £15. For products priced between €15–20 or £15–20, referral fees will decrease from 15% to 10%. Additionally, fulfillment fees across key European markets — including Germany, France, Italy, Spain, and the UK — will drop by an average of €0.32 or £0.26 per item. This reduction is aimed at lowering sellers’ costs and enabling them to offer more competitive prices to consumers.

Amazon also clarified that categories such as household goods, pet apparel, groceries, and vitamins will see reduced referral fees rather than increases. These adjustments will come into effect from 1 February 2026, making it more profitable for sellers to continue operations on the platform while offering consumers lower prices.

Shein and Temu have rapidly expanded their presence in Europe. Shein charges a 10% referral fee in the EU and 12.24% in the UK, offering new sellers fee waivers during the initial months. Temu similarly competes with low-cost products and affordable logistics services. The rising pressure from these competitors prompted Amazon to revise its fee structure to maintain its market share and retain sellers.

The fee reductions are expected to have broader impacts on the European e-commerce market. Lower fulfillment and logistical charges will stabilize prices for both sellers and consumers, while smaller and mid-sized sellers will find it more profitable to continue selling on Amazon. This strategic adjustment could help Amazon regain a stronger foothold against low-cost competitors like Shein and Temu.

However, the success of this initiative depends on maintaining logistical efficiency, timely deliveries, and high customer satisfaction. Without these operational standards, fee reductions alone may not be sufficient to ensure Amazon’s competitive advantage.

In conclusion, Amazon’s decision on 2 December 2025 to cut seller fees across Europe is a decisive response to the ongoing price war with Shein and Temu. The move benefits sellers, provides consumers with lower prices, and could help stabilize the European e-commerce market amid intense competition. This strategic step demonstrates Amazon’s focus on market adaptation, competitive pricing, and seller retention in an evolving online retail landscape.