Amazon Reduces Fees for European Sellers to Boost Competitiveness

2025-12-09 companies

Seattle, Tuesday, 9 December 2025.
Amazon’s 2025 European fee reductions aim to enhance seller competitiveness, challenging rivals like Shein and Temu. Key changes include lower referral and fulfillment fees across various categories.

Strategic Fee Adjustments

Amazon has announced a strategic reduction in fees for its European sellers, effective from December 15, 2025. These changes are part of a broader plan to enhance competitiveness against emerging rivals such as Shein and Temu. The fee cuts, which include reduced referral and Fulfillment by Amazon (FBA) fees, are set to impact key markets including the UK, Germany, France, Italy, and Spain [1][3][5].

Impact on Various Categories

The fee reductions will cover multiple categories, particularly in low-cost fashion and accessories. For example, referral fees for clothing priced up to €15 will decrease from 7% to 5%, providing significant savings for sellers [2][5]. Similarly, fulfillment fees for parcels are expected to drop by an average of €0.32 per unit, further easing the cost burden on sellers [1][5].

Competitive Landscape Transformation

These reductions reflect a strategic shift in Amazon’s approach to maintaining its market dominance amidst growing competition from companies like Temu, which has seen substantial growth in its European user base [2][4]. Temu, projected to exceed €15 billion in European revenue by 2025, presents a significant challenge to Amazon’s market share [3]. By lowering fees, Amazon aims to retain sellers within its platform, offering them a more competitive edge in pricing and profitability [2][3].

Seller Recommendations

Experts from the Amazon Growth Lab recommend that sellers capitalize on this window by reallocating their budgets towards organic ranking improvements and strategic pricing in high-velocity categories [1]. Such moves could help them leverage the reduced fees to expand their market presence and increase sales [1][5].

Sources

Amazon e-commerce