LONDON, Dec 2 (Reuters) - Amazon ( AMZN ) is cutting the fees it

charges sellers in Europe as it responds to competition from

marketplaces like Shein and Temu that sell clothes, homeware and

gadgets at rock-bottom prices.

The move, which Amazon ( AMZN ) said in a statement on

Tuesday was one of its largest ever fee reductions, is focused

first on lowering fees for sellers of cheap fashion.

It cuts the referral fees Amazon ( AMZN ) charges on clothes and

accessories to 5% from 7% for items up to 15 euros ($17.41) or

15 pounds ($19.79), and to 10% from 15% for items between 15 and

20 euros or pounds, effective from December 15.

Shein charges sellers a referral fee of 10% for its European

Union sites and 12.24% for Britain, according to its website,

with zero referral fees for new sellers for the first 30 days.

"As we continue to lower our cost to serve through

operational improvements and innovation, we are passing on

greater savings to our selling partners," Amazon ( AMZN ) said.

Shein, which sells tops for 3 euros and jeans for as little

as 8.20 euros, has taken market share from European fast-fashion

retailers and challenged Amazon ( AMZN ) with its marketplace selling

everything from duvet covers to vacuum cleaners.

Amazon ( AMZN ) is the dominant ecommerce platform in Germany,

France, and other European countries, in a market where revenue

is expected to grow 7% to hit 900 billion euros this year,

industry association Ecommerce Europe forecast.

Additionally, Amazon ( AMZN ) said that it would cut referral fees

from February 1 for home products to 8% from 15% for items up to

20 euros or pounds, as well as cutting fees on pet clothing,

grocery and vitamins.

It will also reduce fulfilment fees for parcels by an

average of 0.32 euros or 0.26 pounds in its Germany, France,

Italy, Spain, and British stores from December 15.

($1 = 0.8615 euros)

($1 = 0.7578 pounds)