Amazon drops transaction fee to fight for sellers

December 13, 2023
1 min read

Amazon has announced a reduction of the transaction fee for fashion sellers from 17% to 5% for clothing priced below $15 (13.9 euros). Specifically, prices for clothing between $15 and $20 (€18.5) will drop by 10%, Bloomberg reports. Changes will affect from January 2024.

The goal for Amazon is pretty clear – to attract sellers offering low-cost clothing and reign in that category. From one side Amazon dominates American e-commerce. On the other side, Amazon sees the growth of Shein and the plans of Chinese e-commerce to IPO next year

Additionally, this new action by Amazon signifies an intriguing shift in the business’s approach. Because it has prioritized profitability all year, Amazon has changed its vendors’ fees multiple times.

Some experts however notice that only a price reduction might be not enough to win the category over Shein, as the Chinese store has billions of views on TikTok and millions of followers on Instagram. And we come back to the topic I mentioned last month a few times – Gen Z and social media, which looks especially important in terms of this product category.

Amazon made a move like cooperation with Snapchat and Instagram but it’s a different story. Amazon has to focus on social media with Gen Z representation to keep its position on the market in the next years as the trends become obvious.

It’s going to be yet another interesting year in e-commerce with the clash of American and Chinese giants.

Marek Molicki

Marek Molicki, since 1998 in the online industry. Extremely motivated to reach goals. Ideas deliverer, problems solver, finder of new ways, the doer. Social media fan, public speaker, trainer. Constantly looking for new skills to learn. Impossible is nothing, it's only the question of time and being consequent.
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