At the end of last year, Amazon US released a notice on the update of sales commission and logistics fees. In addition to adjusting logistics and delivery fees and adding multiple charging items, the notice also reduced sales commissions for low-priced clothing products, causing an uproar in the industry.

In the past two days, many sellers in the Zhaodanmao seller communication group have received emails from Amazon about the adjustment of the commission for clothing categories . Starting from May 15, Amazon will provide discounts on the sales commission of low-priced clothing products in Europe, Japan and Canada. Overall, after the discount takes effect, the commission of low-priced clothing in multiple sites will be reduced to 5%-10%. This is good news.

Details on Amazon's reduced sales commissions

On January 15 of this year, Amazon announced that it would significantly reduce the sales commission of clothing categories on the US site. The specific measures of the reduction at that time were:

a. For clothing products priced below $15 on the US site, the sales commission will be reduced from 17% to 5%;

b. For apparel items priced between $15 and $20, the referral fee will be reduced from 17% to 10%.

c. There is also a commission rate of 17% for products sold at prices above US$20.

The policy adjustment at that time was to significantly reduce the commission fees for low-priced clothing products below US$20.

Today, Amazon brought another good news: Amazon Global Selling announced that it will expand the commission discount for low-priced clothing in the United States to other sites, so as to provide consumers with more choices, including low-priced goods, together with sellers; this is also Amazon's adjustment of the commission for low-priced clothing under the joint attack of Shein and Temu!

In general, after the discount takes effect, the commissions of low-priced clothing on multiple sites will be reduced to 5%-10%. The Polish site will see the smallest reduction, at only 2%, while the UK site will see the largest reduction, at about half.

At present, the pressure of sales costs for sellers in the clothing category of these sites can be slightly relieved. For sellers in other categories, such as beauty products, we will also wait and see whether the platform will take some actions against TK.

Zhaodanmao Cross-border has been deeply engaged in cross-border business for many years. Sellers who need to promote orders outside the site and celebrity video business can contact Zhaodanmao customer service V: FLA66668888

Many people have complained about Amazon in the past two years. It is so competitive now. There were TEMU and Walmart in the past, and then there are TikTok and Shein. North America is so competitive now. Amazon's senior executives didn't see it, and they kept raising the fees. In fact, Amazon is not blind to it, but it is such a huge company with a bloated system, and it will take time to make changes.

At the same time, many sellers also mentioned that the reduction in sales commissions may, to some extent, exacerbate the already serious price war in the clothing category. The current market environment is that the categories are becoming more and more competitive, and the prices are getting lower and lower. Even coupons have begun to undergo major reforms. Troubled times create heroes. It is difficult, but it does not mean that there are no opportunities now. If you are in trouble, everyone is in trouble, but if you survive, the survivors will be the kings. To do Amazon, you still have to maintain an optimistic attitude and keep adjusting.

Temu puts pressure on Amazon

It has to be said that Temu still puts a certain amount of pressure on Amazon, especially sellers in the clothing category, which may be one of the product categories most severely affected by competing platforms in the past year.

According to foreign media reports, as of March this year, many of the same products sold on Amazon, Walmart, Temu and SHEIN platforms often come from the same third-party sellers, and the seller overlap rate in the e-commerce market is continuing to rise: more than 50% of new sellers on Amazon and Walmart are from China, and some sellers have already or are about to settle in SHEIN and Temu.

Let’s take a look at the prices of clothing products on Temu:

The same products are usually sold at lower prices on SHEIN and Temu, especially at 70 to 80 cents. These low-priced products have, to a certain extent, taken away some of the traffic from Amazon and Walmart. After all, if these products are put on Amazon, they may not even be able to cover the FBA delivery fee.

Therefore, if you say that Amazon's policy of lowering commissions was forced by Temu, there is some truth in this.

However, some sellers pointed out that Amazon has already turned into a red ocean in the fierce competition. Not only the clothing category, but any market may eventually turn into a price war. If you want to get rid of the low-price quagmire, you can only innovate or constantly build your own core competitive barriers.