Amazon has shared one of its most important changes related to costs for sellers in Europe in a long time, and the effect is much bigger than just lowering a single fee. These changes will start happening towards the end of 2025, with more reductions planned for 2026. This shows Amazon is changing its approach to help grow its businesses in the EU. For brand owners, private label sellers, and agencies that handle many accounts, this update brings both chances and challenges to think about their future plans.
What Exactly Is Changing in the Fee Structure
Starting December 15, 2025, Amazon will implement reduced Fulfillment by Amazon fees across major European stores including the UK, Germany, France, Italy, and Spain. These reductions build on parcel fee decreases already introduced in 2025. In addition to FBA cost relief, Amazon is also lowering referral fees in the Clothing and Accessories category, dropping from 8 percent to 5 percent for items priced up to £15 or €15, with further reductions on higher price brackets as well. Looking ahead to 2026, Amazon has confirmed an average per-unit fee reduction of £0.15 to £0.17 across European stores.
These numbers may appear modest at first glance, but at scale they represent a substantial shift in seller economics, especially for high-volume brands.
Why Amazon Is Making This Move Now
This change is not only about helping sellers but also about keeping Amazon’s growth in Europe strong. There are more local marketplaces, higher costs for shipping and getting goods to customers, and more pressure from government rules, all of which have changed how e-commerce works in Europe. By reducing fees, Amazon helps sellers keep making a profit while still offering good prices to customers. At the same time, this makes Amazon a more attractive choice for businesses looking to sell across different countries in the EU.
Lower fees also encourage sellers in sensitive margin categories like fashion, accessories, and consumer basics to increase assortment and invest more heavily in paid traffic. More sellers, more listings, and higher advertising spend all reinforce Amazon’s marketplace dominance.
How This Affects Seller Profitability in Real Terms
For small and mid-sized sellers, even a few cents per unit can be the difference between scaling profitably and staying stuck at breakeven. A £0.15 to £0.17 reduction per unit may not seem dramatic on a single order, but for a brand shipping 50,000 units per year in Europe, this translates into thousands in annual savings. When combined with referral fee cuts in clothing, many apparel sellers may see margin expansion for the first time in months.
This also changes how sellers can approach discounts, promotions, and PPC. With slightly more room in the cost structure, brands can run stronger deals during peak seasons without sacrificing profitability. That flexibility is often what separates stable brands from those that struggle to grow.
What Smart Sellers Should Be Doing Right Now
The biggest mistake sellers can make with this update is to simply accept the savings passively. The right approach is to revisit every cost assumption in your business. Landed costs should be recalculated. Break-even ACOS should be updated. Pricing strategies that once felt too aggressive might now be viable.
For brands that were unsure about entering EU marketplaces because of narrow profit margins, this change makes it easier to start. Trying out new EU markets in 2025 with a clear plan for 2026 could give a big advantage to those who move first, especially in areas where competition and low prices have kept growth slow.
The Bigger Strategic Signal Behind the Update
Beyond the numbers, this update sends a strong message about Amazon’s priorities. The company is actively investing in seller success to drive platform-wide volume. This suggests that Europe will remain a core growth focus for Amazon over the next several years. Sellers who align early with this direction by strengthening their EU operations, logistics planning, and localized marketing will likely benefit the most.
It also shows Amazon knows about the challenges sellers are facing, like higher ad costs, risks with inventory, and problems with global supply chains. Lowering fees helps make things more stable in a tricky business environment.
Conclusion: Opportunity Favors the Prepared Seller
Amazon’s new European fee reductions are more than a routine policy update. They represent a meaningful shift in marketplace economics that can reshape profitability, pricing power, and expansion strategies for thousands of sellers. Those who treat this as a planning opportunity rather than a passive benefit will be best positioned to win in the next growth cycle.
Now is the time to revisit your numbers, pressure-test your pricing, and rethink your European roadmap. Cost structures are changing, and in ecommerce, those who adapt early usually reap the biggest rewards.
