Amazon counters Shein and Temu with cost reductions for European sellers

Starting in mid-December, Amazon will reduce costs for sellers of fashion and home goods, among other items, in Europe. This appears to be the retail giant’s response to increasing competition from Chinese platforms such as Shein and Temu.

“Passing on savings to sales partners”

For clothing and accessories, the commission will drop to 5% instead of 7% for items up to €15 and to 10% instead of 15% for items between €15 and €20, effective December 15. In addition, Amazon will reduce the fees for home goods from 15% to 8% for items up to €20, effective February 1. Rates for pet supplies, groceries, and vitamins will also decrease. In addition, handling fees for packages will decrease by an average of €0.32.

“As we continue to reduce our costs through operational improvements and innovation, we are passing on greater savings to our selling partners,” Amazon says on its website. These selling partners account for more than 60% of sales on the platform. It seems likely that the American retailer is responding to the low costs charged by rivals such as Shein and Temu. At Shein, the commission is 10% in the European Union, with a zero rate for new sellers during the first 30 days.