Amazon is sharply cutting fees for merchants selling clothing priced below $20, a sign that it is hunkering down for a price war with Chinese fast-fashion upstart Shein.
On Tuesday, Amazon announced that it would reduce seller fees on clothing priced below $15 to 5% beginning in January. The rates on clothing priced from $15 to $20 will drop to 10%. The commissions on both categories had previously been 17%.
It’s rare for Amazon to reduce the so-called referral fees it charges merchants on its online store, and no other changes of that nature were announced. That signals Amazon is specifically looking to entice merchants offering low-cost clothes — an area where Shein has excelled with its $9 hoodies and other bargain-basement apparel.