Amazon Cuts European Seller Commissions to Stay Competitive with Shein and Temu

Amazon has just announced one of the biggest commission reductions in its history to allow its European partners to sell cheaper. The U.S. company wants to face digital platforms such as Temu or Shein that sell fashion, household goods and devices at very low prices, according to Reuters.

The cut in commissions that Amazon will charge its sellers in Europe is distributed in two tranches and focuses on goods with lower prices: a drop from 7% to 5% for products up to 15 euros and from 15% to 10% for products between €15s and €20.

Shein charges its sellers a 10% commission on sales generated in the European Union, a figure that in the UK reaches 12.2%. The Singapore-based Asian giant has even implemented a zero commission policy for new sellers during their first month on the platform, according to Shein’s own website.

The Asian company has become a threat to Amazon, as it sells T-shirts for under €3 and jeans from €8.20. It has also gained market share in Europe and has challenged Amazon with a marketplace offering everything from duvet covers to vacuum cleaners.

Amazon has announced a drop from 7% to 5% for products up to €15 and from 15% to 10% for products between €15 and €20

“As we continue to reduce our operating costs through improvements and innovation, we pass those savings on to our seller partners,“ an Amazon statement assured.

In this regard, Amazon also announced that it will cut referral fees for household products from February 1st, 2026: they will go from 15% to 8% for items up to €20. It will also reduce fees for pet clothing, food and vitamins.

The company will also cut logistics fees for parcels by an average of €0.32 in its stores in Germany, France, Italy, Spain and the UK from December 15th.

Amazon continues to be the dominant e-commerce platform in Germany, France and other European countries, a market whose volume will grow by 7% this year to €900 billion, according to Ecommerce Europe.