EU – Amazon Cuts Sales Commissions for Third-Party Vendors 

Amazon, an international e-commerce powerhouse, decided to slash sales commissions historically charged to its users. This is the highest-ever reduction in sales commission fees to third-party vendors. Chinese e-commerce marketplaces, like Shein and Temu, are continuously expanding their reach. Amazon’s dominant position in most EU markets remains; however, its share is declining. 

This trend will most likely continue, as the number of third-party vendors registered on Asian marketplaces continues to grow. Low-value products, such as clothing, shoes, household items, and domestic appliances, offered in hundreds of variations at lower prices and with lower commission fees charged by platforms, are driving more and more EU-sellers to register on Chinese marketplaces. 

Amazon’s sales commission fees are significantly higher than those offered on the likes of Shein and Temu. Asian marketplaces are also offering a variety of benefits to new users and sellers with a place of business in preferred countries. 

Amazon decided to respond to the incorporated business strategy of the Asian platforms, most probably in an unexpected move. The reduction of commission fees on underlying sales should “attract” new third-party vendors and “hopefully” help prevent users from losing out to the likes of Shein and Temu. 

Amazon’s cut in commissions for its EU sellers will be divided into two parts: products with a value up to EUR 15 and products with a value between EUR 15 and EUR 20. For the first group, the sales commission fee will drop by 2%, and for the second group by 5%. 

It remains to be seen how this internal policy shift will affect EU vendors and the Amazon profits tied to them.