In a recent update to European sellers, Amazon announced it was reducing many seller fees in 2026. This includes lower fulfillment fees, referral fees, and a cap on variable fees. The fee reductions will apply to many types of goods, including home products, clothing, pet clothing and food, and others.
Many believe this move was done to remain competitive with lower-cost retailers like Temu and Shein, and it’ll allow sellers to price more competitively, boost profits, and potentially even scale operations more effectively.
Amazon Makes One of the Largest Fee Reductions in Company History
In a recent company update, Amazon announced that operational improvements and innovation within the organization have allowed the company to reduce fees for sellers across Europe. The average fee reduction will be £0.15/€0.17 (around $0.20 USD) per unit sold.
The changes are coming in either late 2025 or early 2026 (depending on the fee reduction), and will apply to a variety of fees in high-volume categories like clothing, home products, pet clothing and food, and several others.
Which Fees Are Being Reduced?
Here’s a simple breakdown of the different fees being reduced, and how much they’re being lowered by:
- FBA fulfillment fees for parcels will be reduced by an average of £0.26/€0.32 (around $0.35 to $0.37 USD) for stores in the UK, France, Italy, Germany, and Spain.
- Referral fees for clothing and accessories are dropping to 5% (from 8%) for items up to £15/€15 (around $17 to $20 USD) and to 10% (from 15%) for items between £15/€15 and £20/€20 (around $23 to $26 USD).
- Referral fees for home products are being reduced to 8% (from 15%) for items up to £20/€20.
- Pet food and clothing referral fees are going down to 5% (from 15%) for items up to £10/€10 (around $11 to $13 USD).
- The referral fees for grocery, vitamins, minerals, and supplements are being reduced to 5% (from 8%) for items up to £10/€10.
- The company is extending reduced low-price FBA rates in most categories to products priced at or below £20/€20. This lowers the FBA fees for these products by an average of £0.40/€0.45 (around $0.52 or $0.53 USD) per unit.
- Amazon is also lowering caps on variable fees for Best Deals and Lightning Deals to help stores promote top products. This cap is €100 in France, Italy, and Spain, £200 in the UK, and €300 in Germany.
The first two reductions are going into effect on December 15th, 2025, for all European stores unless otherwise stated, and the rest will go into effect on February 1st, 2026.
However, while most fees are being reduced, there are a few that are being increased. This includes monthly storage fees, liquidation fees, return-to-seller fees, and select FBA fulfillment fees in countries like Sweden, the Netherlands, Belgium, Ireland, and Poland. Thankfully, these increases are small and will only result in an increase of £0.02/€0.02 per unit sold through FBA.
Responding to Competition From Temu and Shein
While the company says these reductions are thanks to better operational efficiency and internal innovation, many believe they were at least partly done in response to increased competition from Temu and Shein.
These retailers often have products listed for much lower prices than on Amazon, which has taken some market share from the ecommerce giant. By lowering fees, it may encourage sellers to price products closer to what’s available on Temu and Shein, thus bringing more paying customers back to Amazon.
What This Reduction Means for EU Amazon Sellers
As mentioned at the end of the last section, this fee reduction means that EU sellers will be able to price their products more competitively than they could comfortably do in the past. Normally, lowering prices to attract customers involves sacrificing margins, but the fee changes give these companies a chance to have more attractive prices without worrying about it hurting their bottom line as much.
Lower fees also boost the profitability per unit, giving sellers more funds to reinvest in the company to expand, scale, and offer new products. The savings from the reduction may also help with financial stability and better equip these brands to deal with future market challenges or fluctuations.
