The European market faced unprecedented challenges in 2022, with the Russia-Ukraine conflict, energy crisis, and soaring inflation creating a perfect storm that left many Amazon sellers struggling to maintain profitability. Some sellers were forced to exit the market entirely, while others scaled back operations significantly.
Recognizing these challenges, Amazon has implemented a series of strategic policy adjustments designed to support sellers and revitalize the European marketplace. These measures aim to provide sellers with new growth opportunities while reducing operational costs.
1. Expanded European Export Program: One-Click Access to 30+ Countries
Amazon has significantly upgraded its European export program, offering Chinese sellers unprecedented market expansion opportunities. Beyond the existing nine marketplaces (UK, France, Germany, Italy, Spain, Netherlands, Sweden, Poland, and Belgium), sellers can now use six established marketplaces (UK, France, Germany, Italy, Spain, and Netherlands) to export products to over 30 additional European countries and regions without dedicated Amazon sites.
This expansion allows sellers to reach broader European markets without additional investment. Product listings from existing marketplaces will automatically appear to consumers across these new territories, potentially multiplying order volumes.
The export program activation process has been streamlined. Sellers with active accounts in any of the six eligible marketplaces can enable the export feature with a single click, requiring no additional documentation.
2. Restructured Referral Fees: Lower Costs, Higher Margins
Effective March 1, 2023, Amazon Europe implemented revised referral fee and fulfillment cost structures, with particularly notable adjustments for apparel and accessories categories:
- UK Marketplace: For total sales exceeding £40, the referral fee drops from 15.3% to 7.14% on the excess amount.
- Germany and Netherlands: For sales above €45, the fee reduces from 15% to 7% on the surplus.
- France, Italy, and Spain: Above €45, fees decrease from 15.45% to 7.21% for the exceeding value.
These reductions directly improve seller profitability, particularly benefiting high-volume apparel merchants through substantial operational cost savings.
3. Custom Product Return Policy Update: Enhanced Seller Protection
Starting February 15, 2023, Amazon Europe modified its return policy for customized and personalized products. Consumers purchasing items with custom names, designs, or engravings no longer qualify for unconditional returns unless the merchandise is defective.
This policy change protects sellers of customized goods, which typically cannot be resold if returned. By reducing unwarranted returns, sellers can focus resources on product development and customer service improvements.
4. Strategic Recommendations for European Sellers
To maximize these policy advantages, sellers should consider:
- Market Expansion: Leverage the enhanced export program to access new European markets, adapting marketing strategies to regional preferences.
- Product Optimization: Adjust inventory mixes to capitalize on reduced referral fees, particularly for higher-value apparel items.
- Customization Services: Develop personalized product offerings while implementing clear communication protocols to minimize order errors.
- Operational Refinement: Continuously monitor policy updates, analyze consumer data, and optimize listings and advertising strategies.
Amazon's strengthened support for European sellers through these policy adjustments creates a more favorable business environment. Early indicators suggest improved market conditions, with some sellers reporting inventory shortages shortly after product launches.