Amazon European seller fees reduction in January 2026 – what it means

• Amazon European seller fees reduction – what changed and why it matters
• How the new fee cuts affect your pricing and margins
• FBA changes explained – parcels and low-price eligibility
• Competing in the low-price segment – standing out alongside Shein, Temu, and Haul
• Action plan for EU-based SMEs – making the most of the Amazon European seller fees reduction

The Amazon European seller fees reduction is big news for online sellers across the EU. Amazon has lowered several seller costs in Europe to make the marketplace more attractive, especially for low-priced products. If you sell clothing, home items, groceries, vitamins, or pet goods, this update could help you sharpen prices and still keep a healthy margin. In the sections below, we explain what changed, why it matters, and how you can use these savings to grow this year.

Amazon European seller fees reduction – what changed and why it matters

Amazon announced a wide set of fee cuts in Europe that target popular and fast-moving categories. At a high level, the company says the average fee reduction per unit across Europe will be 0.17 euro. That may look small at first glance, but it can add up fast when you sell at volume. The Amazon European seller fees reduction covers both referral fees and Fulfilment by Amazon costs in many countries, with a clear focus on items that are priced up to 20 euros.

Several levers are in play. First, Amazon is reducing FBA fulfilment fees for parcels. Second, it is expanding eligibility for low-price FBA, which supports cheaper items that still ship with Prime speed. Third, referral fees in high-volume categories are coming down for items up to 20 euros. These categories include clothing and accessories, home products, groceries, vitamins, and pet clothing and food. Together, these changes support the low-price segment, where customer demand is strong and competition is heating up.

There is also a standout example that shows how deep some cuts go. In the home products category, the commission drops from 15 percent to 8 percent on sales up to 20 euros. That is a large difference for a low-cost item and can change how you price, promote, and plan your inventory. Some of the new fees already took effect on December 15, while others will change on February 1. If your catalog has a lot of items around the 20 euro mark, keep a close eye on those dates so you apply the right fees at the right time.

Amazon links these savings to continued innovation and operational improvements. The goal is clear. The company wants to compete more strongly with fast-growing rivals like Shein and Temu and to keep Amazon’s marketplace the best place for sellers to thrive. Amazon calls this move one of its largest-ever fee reductions. The Amazon European seller fees reduction also aims to stimulate the Western supply side, making it more attractive for EU-based small and medium businesses to list and scale. Last year, EU-based SMEs sold over 1.3 billion products worldwide through Amazon, and these cuts are meant to help them do even more.

How the new fee cuts affect your pricing and margins

The Amazon European seller fees reduction changes the math for a big share of everyday items. Since the lower fees focus on products priced up to 20 euros, you now have more room to set competitive prices without squeezing your margin. That extra 0.17 euro average reduction per unit may seem modest, but across hundreds or thousands of units, it can fund sharper prices, stronger ad bids, or a restock buffer that you could not justify before.

Referral fees are coming down in several high-volume areas. If you sell clothing and accessories, home products, groceries, vitamins, or pet clothing and food, you can review your price ladder and ask what a fair market price looks like under these new costs. In home products, for example, the commission rate for sales up to 20 euros drops from 15 percent to 8 percent. That is a meaningful shift that can tip a borderline SKU into a winner. If your item sits just above 20 euros, consider whether a small price change could bring it into the lower-fee range while still maintaining profit and value.

The new savings could also let you hold price steady while improving contribution margin. In busy periods, holding price can be just as powerful as cutting it. With a lower fee load, your per-unit profit improves without changing your customer-facing price. That can fund better packaging, an extra image set, or a small coupon to boost click-through. Because the Amazon European seller fees reduction also covers FBA fulfilment fees for parcels, low-priced FBA items can remain attractive to buyers who expect fast shipping, while your cost to serve becomes a bit lighter.

Remember that some of the fee updates started on December 15, and more will roll in on February 1. Map your catalog to these dates so you can track your true margin by SKU before and after the changes. A simple weekly report that compares net margin per unit can show you where to lean in. Use the Amazon European seller fees reduction to test bolder pricing, try new bundles under 20 euros, and expand your selection in the categories where referral fees just got lighter.

FBA changes explained – how the Amazon European seller fees reduction helps low-priced items

Fulfilment by Amazon is central to the Amazon European seller fees reduction. Amazon has reduced FBA fulfilment fees for parcels and has expanded low-price FBA eligibility in Europe. For sellers, these two updates matter because they bring fast delivery and reliable customer service to low-priced items while helping you protect margins. When shoppers click on a low-cost item, they still want quick shipping. With lower FBA costs, you can meet that need in more cases without taking a margin hit.

Amazon says these reductions are made possible by continued innovation and operational improvements. While the company did not detail every step, the result is clear for sellers. When the cost to ship and handle drops, low-priced products become easier to offer with Prime speed. That opens the door for more under-20-euro listings to join FBA and stay competitive against rivals. If you had SKUs that were borderline for FBA before, the new fee structure may nudge them into the green, especially in categories with strong demand like clothing, home, grocery, vitamins, and pet items.

Low-price FBA eligibility is especially important for small add-on items that compete in busy search results. The Amazon European seller fees reduction extends the reach of that program, making it simpler to offer value without sacrificing speed. For example, a home product priced at 19.99 euros that once felt tight might now pencil out thanks to the lower referral fee and reduced FBA parcel cost. The same logic can apply to a basic clothing accessory or a small pet supply. With a bit more room in the unit economics, you can keep your price sharp and still deliver the fast experience buyers expect.

Keep in mind that the special focus remains on items priced up to 20 euros. Above that price point, the fee changes do not apply in the same way. So, if you have variants or bundles, it can be smart to design options that clearly sit below the line. Pair your FBA choices with careful price points and simple packaging that fits parcel limits, so you gain the most from the Amazon European seller fees reduction. As you test, track fulfillment cost per unit and your refund rate, then double down on the shapes that deliver repeatable results.

Competing in the low-price segment – standing out alongside Shein, Temu, and Haul

The low-price segment is crowded and fast-moving. Amazon is facing tough pressure from platforms like Shein and Temu, which are known for ultra-low-priced goods. To respond, Amazon launched a discount storefront called Haul in the US last year. Haul has since expanded to five of Europe’s largest ecommerce markets, including the United Kingdom, Germany, France, Spain, and Italy. Most Haul products come from partners in China, and Amazon officially acts as the seller for those items.

This context helps explain why the Amazon European seller fees reduction is so timely. By cutting referral fees on items up to 20 euros and lowering FBA parcel costs, Amazon is making it easier for Western third-party sellers to compete in that same price band. The company says it wants to stimulate the Western supply side in the US and Europe, and to make selling in Amazon’s store the best way for EU-based small and medium businesses to thrive. With lower fees, you can sharpen your offer without giving up the benefits of Prime delivery, trusted returns, and a familiar checkout.

Competing next to Shein, Temu, and Haul will still take smart choices. First, focus your under-20-euro catalog on items that have a clear value story. Speed, quality control, and helpful content can all offset a tiny price gap. Second, use the categories where referral fees just dropped to test new SKUs. Clothing and accessories, home products, groceries, vitamins, and pet clothing and food are ripe for fresh listings and tighter prices. Third, aim for simple packaging that ships as a parcel to tap the FBA fee reductions. The Amazon European seller fees reduction gives you the cost base to do all this, but your listing quality and service will win the final click.

Do not forget the power of small signals. A clear title, crisp images, and a short, honest description can build trust in a crowded search page. If you can keep your item below 20 euros, you can ride the new fee structure to stronger visibility and better conversion. In short, the marketplace is tilting in your favor. Use the Amazon European seller fees reduction as a springboard to meet buyers where they are shopping most often today.

Action plan for EU-based SMEs – making the most of the Amazon European seller fees reduction

Now let’s turn the Amazon European seller fees reduction into practical steps you can act on. Start by auditing your catalog for items priced at or under 20 euros. Mark the SKUs that sit just above the line and ask whether a small change in pack size or price could bring them under 20 euros while staying profitable. Because the average fee reduction per unit is 0.17 euro, even small volume items can gain enough room to justify a sharper price or a small coupon. For home products, remember the specific drop in commission from 15 percent to 8 percent under 20 euros, which can unlock new options.

Next, line up your operations with the fee change dates. Some fees took effect on December 15, and others change on February 1. Build a simple calendar reminder and pair it with a margin tracker so you can compare before and after results by SKU and category. Then, test FBA again for items that were on the edge. With lower FBA parcel fees and expanded low-price FBA eligibility, more low-cost items may now work well with Prime shipping. This can boost conversion without forcing you to cut prices too deeply.

Revisit the categories Amazon highlighted for referral fee reductions. Clothing and accessories, home products, groceries, vitamins, and pet clothing and food all deserve a second look. Can you add one or two new SKUs in each area under 20 euros. Can you bundle a pair of smaller items and still land below the threshold. The Amazon European seller fees reduction was designed for exactly these moves. Small tests can reveal which listings respond best to the new cost structure.

Finally, stay alert to the broader market. Amazon launched Haul to attract shoppers who want ultra-low-priced products, and it expanded Haul to major European markets. At the same time, Amazon says it wants to stimulate the Western supply side and support EU-based SMEs. Use this window to double down on speed, quality, and trustworthy service. Keep your listings simple, your prices clear, and your promises strong. When you match lower fees with better execution, you earn repeat buyers. With the Amazon European seller fees reduction, that path is now a little easier and a lot more exciting.