Amazon has unveiled a strategic reduction in seller fees across a variety of favoured categories, potentially altering the competitive landscape. Fulfilment by Amazon (FBA) fees are set to decline in numerous European nations.
This initiative specifically targets products such as budget-friendly clothing and home goods, aligning with Amazon’s objective to vie against formidable rivals like Shein and Temu.
The retail giant indicates that the average fee reduction per unit sold throughout Europe will amount to 0.17 euros, a feat achieved through persistent innovation and operational enhancements.
The revisions encompass new FBA fulfilment fee reductions for parcels, broadened eligibility for low-priced FBA items, and diminished referral fees in high-traffic categories, which include clothing, accessories, home products, groceries, vitamins, and pet clothing and food.
Fee Reductions
Several of the new fee structures will commence on December 15, while others will take effect on February 1 of the forthcoming year. Importantly, these price reductions are limited to items priced at a maximum of 20 euros.
For example, within the home products category, the commission decreases from 15 per cent to 8 per cent on sales up to that threshold, thereby enhancing Amazon’s competitiveness in the budget-conscious sector.
Referral fee reductions apply only to items up to 20 euros
Amazon Haul
In response to the burgeoning competition from Asian marketplaces, Amazon launched its discount platform, Haul, in the United States last year, showcasing “ultra-low-priced products.”
This initiative has since expanded into Europe, with launches in significant markets such as the United Kingdom, Germany, France, Spain, and Italy. Amazon’s discount storefront now penetrates the five largest e-commerce markets within Europe.
Most Haul products originate from partners in China
Significantly, a majority of products available on Haul are sourced from Chinese partners whom Amazon has actively recruited. These largely unbranded items are frequently dispatched directly from Chinese factories to Western consumers, positioning Amazon as the primary seller in this transaction.
Western Third-Party Sellers
With these imminent fee adjustments, Amazon intends to invigorate the Western supply side of the market in both the United States and Europe.
The goal is to enhance the appeal of selling on Amazon for SMEs based in the EU, which reportedly marketed over 1.3 billion products worldwide through the platform in the previous year.
“We are dedicated to ensuring that selling in Amazon’s store remains the premier avenue for these enterprises to flourish,” the company states regarding this substantial fee reduction initiative.
Source link: Ecommercenews.eu.
