Amazon.com Inc (NASDAQ:AMZN) is reducing its seller fees for certain clothing items in response to the growing competition from Shein.
The e-commerce giant will cut the referral fee from 17% to 5% for apparel priced under $15 and from 17% to 10% for items priced between $15 and $20.
The move is seen as a strategic response to Shein, a major player in the online fashion market, particularly known for its affordable clothing and dynamic supply chain.
While Amazon remains the largest clothing retailer in the US, its high fees have made it one of the most expensive platforms for sellers. The fee reduction is an attempt to make Amazon more cost-competitive in the clothing sector, where Shein has gained prominence.
Despite the price adjustment, Amazon faces challenges in matching Shein's unique advantages, including lower fulfillment costs and a strong social media presence.
The fee reduction underscores the fierce competition in the online fashion space, where Shein has become a dominant player with its distinctive approach to supply chain management and consumer engagement.
In November 2023, reports emerged that Shein had discreetly initiated the process for a public listing in the US, marking what could be one of the biggest initial public offerings (IPOs) in recent years.