Amazon seller fees lowered to compete with Shein

It’s not often that Shein and Amazon get compared in the ecommerce world. They’re two very different beasts, but there’s one thing they have in common – clothing. It turns out Amazon have been feeling the pressure to compete with Shein’s incredibly low prices and decided to lower their Amazon seller fees.

What are the new Amazon seller fees?

In a bold move, Amazon seller fees in the apparel category are being slashed in the US. As the largest clothing retailer in the United States, it’s certainly a beneficial place to sell clothing. However, they’ve been charging sellers a 17% fee. Not to mention the additional costs for fulfilment and advertising. This makes it one of the most expensive categories to sell in.

Going forward, Amazon will now be charging just 5% for clothing items priced under $15. For items between $15-$20, the Amazon seller fee will be lowered to 10%. Ultimately this makes the platform far more appealing, even though the overall cost to sell on there will still be higher than Shein.

So how can Amazon compete with Shein’s prices?

It’s not just about the cost of the item. It’s also about delivery and fulfilment. Amazon are able to offer one or two day delivery whereas Shein can take a week to ship items from China. So even though Amazon are slightly more expensive, they definitely have an advantage in customer fulfilment.

Whilst the two aren’t direct competitors, if Amazon can get more apparel sellers on their platform they might just be able to give Shein a run for their money. Unfortunately, items over $20 will still be charged at a 17% seller fee. We’re not sure how much difference this new seller fee will make, but it certainly makes Amazon more attractive for new and existing brands to sell clothing on. Now if only Amazon could match Shein’s huge social media presence…

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