Online retail giant Amazon has implemented a new tiered referral fee that will reduce the cost of selling jewelry and watches on its site.
The change will primarily apply to the retailer’s partners offering higher-priced luxury items, and could potentially attract more sellers who wouldn’t have listed under the steeper rates. The new fees took effect on June 5, according to Amazon’s seller fee schedule.
Amazon has lowered the referral fee for jewelry sales from European partners to 20% on the portion of the item’s price up to GBP 225 ($287) or EUR 250 ($283), and 5% on the amount above that. Previously it was a flat 25% in the UK and 20% in Germany, France, Italy and Spain. Fees for watches have been reduced from a flat 15% to 15% on the portion of the price up to GBP 225 or EUR 250, and 5% on the amount over that.
That means a partner selling a diamond ring for EUR 1,000 ($1,132) on Amazon would have previously paid the retailer a referral fee of EUR 200 ($226), whereas the new fee would be EUR 88 ($99).
Amazon lowered the fees for US-based sellers in February, with jewelry referrals reduced from a flat 20% to 20% for the portion up to $250 and $5% on the remainder. Watch sellers will pay the retailer 16% for up to $1,500, and 3% on the total purchase price over that.