In response to competition from e-commerce platforms such as Shein and Temu, Amazon (AMZN) is lowering the fees it charges European sellers. Xiyin and Temu sell clothing, homewares and electronics at rock-bottom prices. Amazon said in a statement on Tuesday that the adjustment is one of the largest fee reductions in its history and will initially focus on reducing fees for affordable clothing sellers.
After this adjustment, Amazon will reduce the sales commission from 7% to 5% for clothing and accessories products with a price of 15 euros ($17.41) or 15 pounds ($19.79) or less; for similar products with a price between 15 to 20 euros or 15 to 20 pounds, the sales commission will be reduced from 15% to 10%. The policy will go into effect on December 15.
According to information on Xiyin’s official website, it charges a 10% sales commission for EU site sellers and a 12.24% sales commission for UK site sellers, and new sellers can enjoy zero sales commission for the first 30 days.
Amazon said: “Through operational optimization and innovation, we continue to reduce service costs, and we are also passing on more cost savings to our sales partners.”
Xiyin has seized the market share of European fast fashion retailers with its low-price strategy of 3 euros for a top and as low as 8.20 euros for a pair of jeans. At the same time, Xiyin has challenged Amazon with its e-commerce platform covering various products from quilt covers to vacuum cleaners.
Industry association "Ecommerce Europe" predicts that the European e-commerce market revenue is expected to grow by 7% this year, reaching 900 billion euros; and in the e-commerce markets of Germany, France and other European countries, Amazon remains the dominant platform.
In addition, Amazon said that starting from February 1, for home products with a price of no more than 20 euros or 20 pounds, sales commissions will be reduced from 15% to 8%; at the same time, fees for pet clothing, groceries and vitamins will also be reduced.
From December 15, Amazon’s parcel delivery fees will be reduced by an average of 0.32 euros or 0.26 pounds at sites in Germany, France, Italy, Spain and the United Kingdom.