Amazon Selling Fee in the UK in 2024? What UK Amazon Sellers Need to Know

Ryan Patrick

• 5 min read
Amazon Selling Fee in the UK in 2023? What UK Amazon Sellers Need to Know

As the e-commerce landscape continues to evolve, Amazon remains a dominant force in the UK market, offering unparalleled opportunities for sellers to reach a vast audience of consumers.

However, selling on this platform selling on this platform involves more than just listing products and fulfilling orders. One crucial aspect that every UK Amazon seller must understand is the selling fees imposed by the platform.

In 2023, these fees underwent notable changes, prompting sellers to reevaluate their strategies and pricing structures. In this blog post, we'll look into the intricacies of Amazon selling fees in the UK, equipping sellers with the knowledge they need to optimize their profitability and succeed in this competitive marketplace.

Amazon on a Continual Growth

Amazon has experienced enormous growth in the UK, with sales net rising from $4 to $32 billion. Do you want to be part of this massive growth? Selling on Amazon offers an excellent chance to connect with a large international audience. After the European fulfilment network reintroduction as an Amazon UK seller, you gain access to five more Amazon European markets.

  • Amazon Spain
  • Amazon Germany
  • Amazon France
  • Amazon Netherlands
  • Amazon Italy

These marketplaces give your business an advantage because they boost your brand visibility without working extra.

This blog will take you through all you need to do to thrive in the Amazon UK market as a newcomer or a seasoned seller who wants to venture into the Amazon marketplace. You will learn to set up an Amazon account and understand the benefits of venturing into Amazon UK to strategies to enable you to make sales on the platform.

Where to Start Before Selling on Amazon

To start selling on Amazon UK, you must have a selling plan. There are two selling plans.

  • Individual
  • Professional plan

Before choosing a plan, consider your business's size and goals on the Amazon marketplace. If you're selling less than 35 items a month, choose individual and professional plans if you run a more significant business. In an individual plan, you pay £0.75 for completion and 8% to 15% for each item you sell. Referral fee depending on the product category. With a professional plan, you pay £25 on every item you sell without including monthly VAT. Fortunately, you will access Amazon selling tools and other features to grow your business.

Depending on the shipping method of your choice, you may incur fulfilment fees throughout the time of fulfilment orders. You can fulfil orders yourself or use fulfilment by Amazon. With this, Amazon will handle your logistics and offer shipping of all your products.

Remember, you may incur additional fees when you list on the Amazon platform, such as

  • Inventory fees
  • High volume listing fee
  • Administration fee

Referral Fee

When you sell any item on Amazon, you pay a mandatory referral fee, calculated as a percentage of the product's total price. Different products have different referral fees, which include the total price a customer will pay, including product price, wrapping, and delivery charges.

Fulfilment Fees

Fulfilling orders is crucial in every e-commerce business; fulfilling high-demand orders can be overwhelming, and customers want a trustworthy partner to ship their purchases. On Amazon, you can ship the products yourself or use FBA to handle logistics and offer features like prime shipping for products you sell.

Fulfilment by Amazon (FBA)

If you don't want to fulfil your orders, use FBA. If you sell an item, Amazon ships it for you. You can store your products in Amazon fulfilment centres, and the company will pack and distribute them on your behalf and handle customer service.

There are no additional setup or subscription fees when using FBA, although you must pay storage and fulfilment fees. The fulfilment fee varies depending on the product's weight, type and dimensions, and the shipping method.

The inventory storage fee is classified into two types

  • January to September: you need to pay a monthly fee of £0.30 per cubic foot
  • October to December: due to the holiday rush, the monthly fee rises to £0.40 per cubic foot

Fulfilment by Merchant (FBM)

FBM is a seller who ships products to customers. FBM needs to pay the FBM fee, which is lower than that of FBA sellers. In FBM, Amazon understands that the shipping cost is the seller's responsibility. If you're on an individual selling plan, Amazon mandates you to use their set selling rates, although the shipping credit reduces the shipping cost. So, it's advisable to revise the price of your products to avoid getting overwhelmed by Amazon rates.

If you're using the FBM professional plan, you will have flexibility when choosing shipping rates. Also, Amazon offers sellers a shipping credit that matches their shipping rates based on shipping methods.

How to Set Up a UK Amazon Seller Account

Setting up an Amazon seller account is easy; follow these steps

After signing up, you're required to provide your business and personal information. You must also provide your valid ID, credit card statement, recent bank account, chargeable credit card, and phone number. From there, Amazon verifies your submission, and you may meet an Amazon associate through the verification process who will ask you to provide further documents. You will get your Amazon UK seller account if you meet all requirements.

Advantage of Trading on Amazon UK

The UK Amazon marketplace benefits the sellers from its strong reputation, convenience, and low entry barriers. Here are the benefits of using Amazon UK

A global Audience

The primary Amazon UK advantage is the potential to reach millions of customers in the six European countries. With the reintroduction of the EFN program, if you're a seller in the UK, you can reach customers in the Netherlands, Germany, Spain, Italy, and France; that's more than 176 million prospects.

Additionally, Amazon offers sellers free translation that translates their product listings into every country's local language. That means you will go global while staying local.

What to Consider When Trading on Amazon UK

Like selling on any international market, you must follow diverse rules and regulations when selling on Amazon. This platform offers various resources and services that will help you navigate this. As a seller, you must be equipped and ensure compliance because failure may result in hefty fines, penalties, or non-profit business.

Know the Taxes and Fees Involved

To ensure your Amazon UK business remains profitable and compliant, be familiar with Amazon UK pricing of these Amazon UK taxes.

  • Value Added Tax (VAT): this is a tax that European traders must add to their excellent price. Every business must register for VAT, keep track of and collect it, and pass it to tax authorities when filing return tax. The UK standard VAT is 20%.
  • Custom duty: a tax levied on specific products imported into the United Kingdom from nations outside the EU. The custom duty rates you pay on Amazon depend on the product type and the country you're importing from.

Follow Laws and Regulations

If selling on Amazon UK, you can sell in other European countries under EFN, so you must comply with every country's laws and regulations. This means you must register for VAT and file VAT returns in every country your business operates. Remember that every country has a different VAT rate and requirements on how frequently you file returns.

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Conclusion

The UK marketplace has promising growth opportunities for businesses willing to join Amazon sellers. It enables you to reach an international audience and is an advantage of the Amazon fulfilment network. However, your success on Amazon can be a short-term achievement. It requires constant monitoring and optimisation of your advertising and sales efforts. Ensure you stay updated on local news and regulations to remain compliant and build a profitable business.