Amazon Lowers Referral and FBA Fees Across Europe

Amazon has announced a sweeping reduction of referral and FBA fees across its European marketplaces, marking one of the most significant cost adjustments for sellers in recent years. The changes, which begin on December 15, are aimed at easing the burden on merchants—particularly those selling low-priced apparel and high-volume consumer goods—as Amazon responds to mounting competition from low-cost platforms such as Shein and Temu. These revisions directly impact European referral fees, FBA fulfillment fees, and the scope of low-price FBA programs, helping sellers maintain competitiveness in an increasingly price-sensitive market.

Major Fee Reductions Effective December 15

Across all European stores, Amazon will lower referral fees for apparel and accessories beginning December 15.

• For items priced at or below €15/£15, the referral fee drops from 7% to 5%.
• For items priced between €15–20/£15–20, the referral fee decreases from 15% to 10%.

In parallel, Amazon will reduce FBA parcel fulfillment fees in Germany, France, Italy, Spain, and the United Kingdom. Depending on the marketplace, average FBA fees will fall by approximately €0.32 or £0.26 per unit. According to Amazon, these combined adjustments will lower the average per-unit cost for European sellers by roughly €0.17/£0.15.

Additional Reductions Coming February 1, 2026

Amazon has announced further, category-specific fee cuts that will take effect on February 1, 2026. These reductions broaden the impact beyond apparel:

• Household goods (newly categorized): For items priced up to €20/£20, referral fees will decrease from 15% to 8%.
• Pet apparel and pet food: For items priced up to €10/£10, referral fees will fall sharply from 15% to 5%.
• Food, vitamins, and supplements (newly included categories): For items priced up to €10/£10, referral fees will drop from 8% to 5%.

Expansion of the Low-Price FBA Program

Amazon will also expand its Low-Price FBA program to cover items priced up to €20/£20. As a result, newly eligible products will see average FBA fees fall by an estimated €0.40/£0.45 per unit. This initiative is designed to support sellers offering competitively priced goods—an area where Shein and Temu have gained rapid traction.

Lower Fee Caps for Promotional Campaigns

To give sellers better control over promotional spending, Amazon is revising the variable fee caps for its Best Deals and Lightning Deals programs. The new caps are set at:

• £200 for the UK
• €300 for Germany
• €100 for France, Italy, and Spain

These adjustments are expected to help sellers participate in major promotional events without incurring unexpectedly high promotional fees.

Targeted Increases in Certain Cost Categories

While Amazon is reducing multiple fee types, it will introduce targeted increases in several areas. Monthly storage fees, return-to-seller fees, and liquidation fees will see upward adjustments. Additionally, regional updates to FBA fulfillment fees will take effect in the Netherlands, Sweden, Belgium, Ireland, and Poland.

In aggregate, these increases may raise per-unit costs by approximately €0.02/£0.02 for certain items fulfilled through FBA. Amazon emphasized that these changes aim to rebalance operational costs as part of broader European network adjustments.

Market Context: Competing Against Low-Cost Platforms

Amazon noted that small and medium-sized enterprises across the EU sold more than 1.3 billion items on its platform last year. The current round of fee reductions is widely viewed as a direct response to competitive pressure from Shein and Temu.

Public data shows that Shein typically charges sellers a 10% referral fee in the EU and 12.24% in the UK, along with a 30-day fee-free incentive for new merchants. As low-price marketplaces expand across Europe, Amazon's fee reductions—particularly on low-value apparel and high-volume goods—are seen as a strategic move to retain sellers and safeguard market share.

By lowering referral fees, reducing FBA fulfillment fees, and expanding the Low-Price FBA program, Amazon is recalibrating its fee structure to support sellers competing in a fast-shifting, price-driven market. These adjustments give European merchants more room to operate profitably, especially in categories heavily influenced by low-cost rivals. As Amazon continues refining its fee models, sellers will need to evaluate how these updates impact their overall cost structure and pricing strategies.