Save more than half?! Amazon's new preferential rates are coming soon!

The biggest benefit Amazon sellers have received in 2019 is that the US site lowered the commission rate and storage fees at the beginning of the year, which really saved sellers a lot of money (click here for details).

This made sellers on the European site envious and jealous. Although Amazon later announced that there would also be price cuts on the European site, they would only be limited to monthly and long-term storage fees.

The European site has lost too many sellers due to tax and Brexit issues. In order to stabilize the existing sellers and attract more people to enter the European site, a new favorable policy is to stimulate everyone.

Amazon has decided to directly lower the commission on its European site, with some categories even being reduced from 25% to 5%!

This commission update will be officially implemented on June 5th . Let me tell you about the main categories involved and the extent of the reduction.

1. Grocery (excluding beer, wine and spirits), Beauty , Health & Personal Care and Baby Products (excluding baby clothing)

For low-priced products in these four categories (unit price ≤ 10 euros/pound), the commission rate will be reduced from the fixed 15% to 8%. Products with a unit price of more than 10 euros/pound will still be charged 15%.

2. For furniture products, the commission rate for products with a unit price of more than 200 euros/175 pounds will be reduced from 15% to 10% (excluding mattresses)

3. Jewellery and watches: These are the categories where commissions have dropped the most, from 15%-25% to a uniform 5%! The new commission rate only applies to items in these two categories with a unit price of more than €250/£225.

Amazon also announced that it would set a minimum commission of 0.3 euros/0.25 pounds for all categories except groceries and media products, and raised the commission for TVs, laptops and PCs in France from 5% to 7%.

The magnitude of the reduction seems to be very large, but compared with the US site policy introduced at the beginning of the article, there is not much change, and it is almost the same as the reduction in commissions on the US site.

Unlike the update on the US site, the US site also raised the commission for the well-known red ocean category - shoes, bags and clothing. These minor price cuts were directly recovered.

US site updated commission policy, clothing, shoes and bags all increased

Therefore, the European site has not increased the commission rate for red ocean categories, which is still attractive to sellers. In particular, the groceries, beauty, health & personal care and baby products categories with high demand have created many opportunities for sellers to enter the European site after the commission rate was lowered.

This is not the only good news for sellers who are still waiting and watching the European site. Just this month (April), a major favorable policy has been implemented on the European site.

In April, the monthly storage fees for clothing and footwear categories in the European station have been lowered!

The reduction policy, which was implemented in April, targets the standard parts inventory in the clothing and footwear categories. Below we compare the storage fee standards before and after the adjustment.

Before the April reduction

After the April reduction

In comparison, regardless of whether it is the peak season or the off-season, the monthly storage fee is basically 40% off .

Clothing and shoes are definitely among the top categories on Amazon, and monthly storage fees are an unavoidable expense for FBA sellers every month.

Therefore, this wave of price cuts in April has really boosted the competitiveness of the European site. Coupled with the commission rate reduction that is carried out simultaneously with the United States, it will definitely make those sellers who were discouraged by European taxes eager to try again.

Want to enter the European site to try out the categories with reduced commissions? I have prepared product selection assistance plug-ins and product selection suggestions for you. Scan the QR code below to contact me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group