Amazon Slashes Seller Fees in Europe Amid Rising Pressure From Budget Marketplaces, Temu Price War
GeokHub
Contributing Writer
LONDON — Dec 2 (GeokHub) Amazon is rolling out one of its biggest fee cuts ever across its European marketplaces, a move designed to help sellers remain competitive as low-cost rivals gain ground. The reductions target key categories such as clothing, accessories, and home goods — areas where discount platforms have been drawing shoppers away.
Starting December 15, Amazon will lower referral fees on clothes and accessories: items priced up to €15/£15 will see the fee drop to 5 percent (down from 7 percent), while those in the €15–€20/£15–£20 range will now carry a 10 percent fee instead of 15 percent. In a further phase beginning February 1, 2026, discounts will extend to home products, groceries, pet clothing, vitamins and other everyday items. Fulfillment fees will also shrink slightly across major markets in Germany, France, Italy, Spain and the UK.
The aim is to ease cost pressures on sellers so they can lower final prices — a necessary step as consumers gravitate toward bargain-focused platforms. For many sellers of low-cost goods, the adjustments could make the difference between staying afloat and being undercut by cheaper alternatives.
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By reducing margin pressure on sellers in price-sensitive segments, Amazon hopes to reinforce its position in Europe’s vast e-commerce market and retain merchants who might otherwise defect. At the same time, this could fuel even more aggressive pricing — a sign that the broader price war in online retail shows no sign of cooling down.
