Overview

Amazon UK has announced a reduction in referral fees for the Kitchen category, with the changes taking effect on February 5, 2026. The fee cuts are designed to benefit sellers offering products priced under £20, potentially improving margins on a wide range of everyday kitchen items. The move comes as Amazon looks to remain competitive in a kitchen and home goods market that continues to expand alongside growing consumer interest in home cooking and kitchen gadgets.

What's Changing

• Lower referral fees in Kitchen — Amazon UK is reducing the percentage-based referral fees charged to sellers listing products in the Kitchen category, with the most significant savings applying to items at lower price points.
• Products under £20 benefit most — Sellers offering budget-friendly kitchen products will see the largest margin improvements, as the fee structure now provides more favorable rates for goods priced below the £20 threshold.
• Effective February 5, 2026 — The new fee schedule is already in effect, meaning sellers should review their pricing strategies and margin calculations immediately to take advantage of the changes.
• Category momentum — The Kitchen category on Amazon UK continues to experience strong growth, driven by sustained consumer demand for home cooking supplies, kitchen gadgets, and related accessories.

How the Fee Reduction Works

Amazon charges sellers a referral fee on each unit sold, calculated as a percentage of the total sale price. In the Kitchen category, this fee has historically been set at a flat rate regardless of product price. The new structure introduces a tiered approach that lowers the effective referral fee percentage for products at lower price points, particularly those under £20. This means that a seller offering a £12 silicone spatula set or a £15 spice rack, for example, will now retain a larger share of each sale than they would have under the previous fee schedule.

For sellers who have been operating on thin margins with competitively priced kitchen products, this change could meaningfully improve unit economics. The reduction does not eliminate referral fees entirely, but it narrows the gap between revenue and cost on each transaction, giving sellers more room to invest in advertising, product improvements, or simply improve profitability.