Overview

Amazon is rolling out one of its most aggressive fee reduction packages ever for European marketplace sellers, cutting both referral commissions and FBA fulfillment costs across multiple product categories. The phased changes, which begin in April 2025 and extend through January 2026, are a direct competitive response to the rapid growth of ultra-low-price platforms Shein and Temu across European markets. The reductions average €0.17 per unit sold and are heavily weighted toward lower-priced merchandise, precisely the segment where Chinese competitors have made the deepest inroads.

What's Changing

• Referral fee cuts across five major categories — Clothing, home products, pet supplies, grocery, and vitamins/supplements all see significant commission reductions, with some rates dropping by as much as 67%
• Expanded Low-Price FBA program — The eligibility threshold doubles from €10 to €20, bringing FBA fee savings of up to €0.45 per unit to a much larger pool of products
• Reduced FBA fulfillment costs — Parcel shipping fees drop by an average of €0.32 across all major European stores including Germany, France, Italy, Spain, and the UK
• Phased rollout — Clothing and FBA changes take effect April 15, 2025, while home, pet, grocery, and supplement fee reductions follow on January 5, 2026
• Pan-European scope — All changes apply across Amazon's EU marketplace network simultaneously

Clothing and Apparel: The First Wave

The most immediate impact hits the clothing and accessories category, where fee reductions go live on April 15, 2025. For products priced up to €15, referral fees drop from 8% to 5%, a 37.5% reduction in commission costs. Items in the €15 to €20 range see an even more dramatic shift, with fees falling from 15% to 10%. These cuts are surgically targeted at the exact price points where Shein has built its dominance, offering fast-fashion items like T-shirts for under €3 and jeans starting at €8.20. For Amazon sellers in the apparel space, the new fee structure meaningfully narrows the cost gap that has made it difficult to compete on price with Shein's direct-from-factory model.

Home, Pet, and Grocery: The January 2026 Phase