Amazon cuts commissions in Europe to face competition from Chinese platforms Shein and Temu
Employed in an Amazon high-tech warehouse, PHOTO: Tom Wren / SWNS / Profimedia Images
The American giant of online sales Amazon has decided to reduce the commissions charged to merchants in Europe, in an attempt to respond to the competition coming from platforms such as Shein and Temu, which sell clothes, household items and gadgets at extremely low prices, reports Reuters, taken by Agerpres.
The move, which Amazon said Tuesday is one of its biggest commission cuts to date, is primarily focused on reducing those for cheap fashion sellers.
According to the American giant, starting December 15, the referral commissions it charges for clothes and accessories will be reduced from 7% to 5% for items up to 15 euros ($17.41) or 15 pounds ($19.79) and from 15% to 10% for items between 15 and 20 euros or pounds.
Shein charges sellers a 10% referral fee for its European Union sites and 12.24% for the UK, according to its website, with zero referral fees for new sellers for the first 30 days. “As we continue to reduce costs through operational improvements and innovation, we are passing on greater savings to our selling partners,” Amazon said.
The EU has a bad idea about parcels coming from China and wants to speed up the measures that would hit Temu and Shein
Shein, which sells jeans for just €8.20, has taken market share from European fast-fashion retailers and challenged Amazon with its marketplace that sells everything from duvet covers to vacuum cleaners.
Amazon is the dominant e-commerce platform in Germany, France and other European countries, in a market where revenues are expected to rise by 7%, reaching 900 billion euros this year, according to forecasts from the Ecommerce Europe association.
In addition, Amazon said it will reduce referral fees from February 1 for home products from 15% to 8% for items up to €20 or £20, as well as fees for pet clothing, food and vitamins.
It will also reduce processing fees for parcels by an average of €0.32 or £0.26 across its stores in Germany, France, Italy, Spain and the UK from 15 December.
