Amazon responds to competition from Shein. The company, led by Andy Jassy, has announced that from January next year will reduce the transaction fees it charges sellers from 17% to 5% for clothing items that cost less than $15 (13.9 euros). More specifically, himPrices for clothing between 15 and 20 dollars (18.5 euros) will decrease by 10%as Bloomberg reports.
It’s unusual for Amazon to lower the so-called referral fees it charges sellers on its online store, suggesting the company is targeting sellers offering low-priced clothing and a clear challenge to Shein.
Amazon dominates US e-commerce. On your side, Shein plans to go public in 2024. To this end, it has appointed Goldman Sachs, JPMorgan Chase and Morgan Stanley to list in the United States a value that could be around $90,000 million (approx. 82,230 million euros).
Also this new step from Amazon represents an interesting change in corporate strategy. Amazon has focused on profitability throughout the year and has adjusted its seller rates several times.
However, according to Marketplace Pulse, the reduction in seller fees may not be enough for Amazon to take market share away from Shein in the apparel space. «Amazon doesn’t have the tens of millions of followers that Shein has on Instagram or the billions of views that Shein has on TikTok, and focusing on fees misses the line for the trees.“he defined Juozas Kaziukènas, Founder of Marketplace Pulse.