Amazon Announces Major Seller and FBA Fee Reductions in the EU

Amazon has announced a significant reduction in the fees it charges third-party sellers across its European marketplaces, via FBA costs, marking one of the most substantial fee adjustments in recent years.

The decision is part of Amazon’s broader strategy to strengthen its competitive position against fast-growing low-cost ecommerce rivals such as Shein and Temu. European sellers will benefit from lower referral fees and reduced Fulfilled-by-Amazon (FBA) costs, with changes taking effect from late 2025 and continuing into early 2026.

Why Amazon Is Cutting Fees in Europe

The European e-commerce market has become increasingly competitive, driven by the rapid expansion of low-price international platforms. These competitors have attracted sellers by offering aggressive pricing, low commissions, and simplified onboarding. In response, Amazon is reducing the overall cost of selling on its platform to retain existing sellers, attract new merchants, and ensure that price-sensitive categories remain viable within its ecosystem.

Amazon has stated that improvements in logistics efficiency and operational innovation have enabled it to pass on cost savings to sellers while continuing to invest in its fulfillment network across Europe.

Key Updates to Referral Fees

One of the most impactful changes concerns referral fees, which represent the percentage commission Amazon charges per sale.

Clothing and Accessories

Effective December 15, 2025, referral fees for clothing and accessories will be significantly reduced for lower-priced items. Products priced up to €15 or £15 will see fees drop from 7% to 5%. Items priced between €15 and €20, or £15 and £20, will see fees reduced from 15% to 10%. These adjustments are aimed at improving margins in one of Amazon’s most competitive and price-sensitive categories.

Additional Category Reductions from February 2026

Further referral fee reductions will take effect on February 1, 2026, expanding the impact across multiple categories:

• Home products priced up to €20 or £20 will see referral fees reduced from 15% to 8%
  
• Pet clothing and pet food priced up to €10 or £10 will see fees reduced from 15% to 5%
  
• Grocery products, vitamins, minerals, and supplements priced up to €10 or £10 will see referral fees reduced from 8% to 5%
  

These changes are designed to support sellers offering everyday, lower-priced products where margins are traditionally tighter.

FBA Fee Reductions Across Core European Markets

Amazon is also reducing Fulfilled-by-Amazon (FBA) fulfillment fees for parcel shipments across its major European marketplaces, including the United Kingdom, Germany, France, Italy, and Spain.

From December 15, 2025, average FBA fulfillment fees for eligible parcels will decrease by approximately €0.32 or £0.26 per unit. This reduction directly lowers the cost of picking, packing, and delivering orders, making Amazon’s logistics network more accessible for small and mid-sized sellers.

Expansion of the Low-Price FBA Program

Amazon is expanding eligibility for its Low-Price FBA program, which offers reduced fulfillment fees for lower-priced products. Items priced at or below €20 or £20 will now qualify, resulting in an additional average saving of approximately €0.40 or £0.45 per unit.

This change is significant for sellers competing in high-volume, low-margin segments, where fulfillment costs can determine overall profitability.

Adjustments to Promotional Fee Caps

To make promotions more predictable and affordable, Amazon is also revising the caps on variable fees for promotional tools such as Best Deals and Lightning Deals. Lower, more clearly defined caps will allow sellers to plan promotional campaigns with greater cost certainty, thereby improving the effectiveness of seasonal and event-driven sales strategies.

Selective Fee Increases and Operational Balancing

While the overall direction of the update favors sellers, Amazon will introduce selective fee increases for certain operations. These include adjustments to monthly storage fees, return-to-seller fees, and liquidation costs. The goal is to encourage efficient inventory management and reduce long-term warehouse congestion.

For most sellers, these increases are expected to be minimal, with an average impact of around €0.02 or £0.02 per unit, partially offsetting the broader reductions elsewhere.

What the Changes Mean for European Sellers

The revised fee structure offers several strategic advantages for sellers operating in Europe:

Improved Profit Margins

Lower referral and fulfillment fees allow sellers to retain a larger share of revenue per sale, particularly in low-priced categories.

Greater Pricing Flexibility

Reduced costs make it easier to remain competitive on price without sacrificing profitability.

Better Economics for Low-Cost Products

Expanded Low-Price FBA eligibility improves the viability of selling everyday items through Amazon’s fulfillment network.

More Predictable Promotion Costs

Revised promotional fee caps reduce financial risk when running sales campaigns.

Competitive Context in European E-commerce

Amazon’s fee reductions reflect broader shifts in the European e-commerce landscape. Low-cost international platforms have reshaped customer expectations around pricing and delivery. By adjusting its fee structure, Amazon is reinforcing its position as a scalable, seller-friendly marketplace while continuing to offer fast delivery, customer trust, and extensive logistical reach.

Amazon’s decision to reduce seller and Fulfilled-by-Amazon fees across European marketplaces represents a significant strategic response to rising competition in e-commerce. 

By lowering referral fees, reducing fulfillment costs, expanding low-price programs, and offering more affordable promotions, Amazon aims to strengthen seller profitability and maintain its leadership position in Europe. As these changes roll out through late 2025 and early 2026, sellers who adapt their pricing, assortment, and fulfillment strategies will be best positioned to benefit from the new fee landscape.