January 27, 2023

Selling on Amazon UK in 2023: Everything You Need to Know

In the past decade, Amazon has experienced astounding growth in the United Kingdom, with net sales rising from $4 billion to $32 billion.

Moreover, selling on Amazon UK in 2023 is an excellent opportunity to tap into a massive international audience. With the recent re-introduction of the European Fulfillment Network (EFN), Amazon UK sellers also gained access to five other Amazon European markets: Germany, Spain, Italy, France, and the Netherlands.

Whether you’re a seasoned seller looking to venture into the UK market or a newcomer to the Amazon marketplace, we got you covered - from setting up your seller account to understanding the benefits and considerations of selling on Amazon UK. We’ll also discuss strategies to help you make the most of your sales.

Ready to start selling on Amazon UK in 2023?

Read on for all the information you need to succeed!

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How to Get Started Selling on Amazon UK

To become a seller on Amazon UK you first have to choose your selling plan. When deciding between Individual and Professional plans, consider the size of your business and your goals for selling on Amazon.

The Individual plan may be the better option if you plan to sell fewer than 35 items per month. The Professional plan may be the more cost-effective choice if you're running a larger business. With the Professional plan, you’ll gain access to all of Amazon’s selling tools, among other features designed to help you grow your business.

How to Get Started Selling on Amazon UK

Next, you must create a new seller account for the UK marketplace. You can use your Amazon UK seller account to sell in other countries under the EFN. This is considered a “unified account.”

Set Up an Amazon UK Seller Account

To set up a UK Amazon seller account, head to sell.amazon.co.uk and click on the “Sign up” button. You can continue with an existing UK Amazon customer account or create a new one.

Once the sign-up is complete, you will be asked to provide your personal and business information and accompanying documents: a valid ID, recent bank account or credit card statement, chargeable credit card, and phone number.

Amazon will verify your submission; you may meet with an Amazon Associate during the verification process or be asked to provide further documents. Just be collaborative and you’ll get access to your new UK seller account in no time.

Set Up an Amazon UK Seller Account

The Benefits of Selling on Amazon UK

Like every other Amazon market, the UK marketplace sellers also benefit from Amazon’s strong reputation, low entry barriers, and the convenience the platform offers to customers.

In addition to the above, Amazon UK sellers enjoy the following benefits:

Reach a Global Audience

The main Amazon UK advantage is the potential to reach millions of new customers across 6 European countries. Due to the recent reintroduction of the EFN program, UK sellers can now also reach Amazon customers in France, Germany, Spain, Italy, and the Netherlands; that’s over 176 million monthly unique visitors.

Amazon offers a free translation tool to automatically translate your product listings in each country’s local language. You can go global while still staying local and enjoy the best of both worlds!

Fulfillment by Amazon (FBA) for the UK Market

Amazon has its largest European logistics presence in the UK, operating 20 distribution services. Sellers who choose the FBA route can rely on one supply chain to access 6 European markets, the UK included. FBA covers storage, international shipping, returns, and customer service.

You also have the option to cover fulfillment yourself. However, UK Amazon sellers that have moved to FBA have seen a sales increase of around 35%. That’s due to faster shipping times and a streamlined fulfillment process.

Considerations When Selling on Amazon UK

Selling in international markets means you must follow different rules and regulations. Amazon offers several resources and services to help you navigate this. Ultimately, as a seller, you must be informed and ensure compliance. Failure to do so may result in fines and other penalties or an unprofitable business.

Understand the Fees and Taxes Involved

For your business to be profitable (and compliant), you need to understand how much does it cost to sell on Amazon UK. That includes becoming familiar with Amazon UK fees and taxes, which are:

  • Amazon selling fees UK - Sellers under the Individual plan must pay £0.75 for each product they sell. Professional plan sellers pay a £25 fee per month excluding VAT.
  • Referral fees - These are fees that Amazon charges for each item sold on the platform. The referral fee is a percentage of the item’s sale price and it varies between 8-15%, depending on the product category.
  • Fulfillment fees - This will depend on whether you fulfill your own orders or use Fuflillment by Amazon (FBA) - you can use the Amazon Revenue Calculator to estimate the Amazon FBA UK fees.
  • Additional fees - You may incur additional selling fees, such as inventory fees, high-volume listing and refund administration fees.

For a full overview of Amazon UK fees, check out the Amazon UK Pricing page.

  • VAT (Value Added Tax) - A tax that European sellers have to add to the price of goods. Businesses must register for VAT, collect, keep track of VAT and pass it to the national tax authorities when filing their tax returns. The standard VAT rate in the UK is 20%.
  • Customs duty - This is a tax levied on certain products imported into the UK from countries outside the EU. The rate of customs duty Amazon sellers have to pay depends on the type of product and the country where it is coming from.

Here you can learn more about the UK VAT and Customs Duty requirements and how to comply.

Follow Local Laws and Regulations

If you're using Amazon UK to also sell to any of the five other European countries that fall under the EFN, you must comply with the local laws and regulations in each of those countries.

This means that you need to register for VAT and file VAT returns in every European country your business operates in. Each country has a different VAT rate and requirements on how often you should file your tax returns.

Research the relevant VAT requirements before shipping to the UK and other European customers, as well as tax implications for you as a seller.

Strategies for Successful Selling on Amazon UK

In this section, we delve into two key strategies you can use to set yourself up for success and offer practical tips for implementing them.

Leverage Amazon Advertising

As an Amazon seller, you know that standing out from the competition is key to driving sales.

By leveraging the power of Amazon advertising, you can effectively promote your products to boost visibility and sales on the Amazon UK platform. This is a powerful tool for driving targeted traffic to your product listings and can help you reach customers who are actively looking for products like yours.

Consider using sponsored products, sponsored brands, and display ads to reach a targeted audience. For instance, when a UK customer searches for “dustbin”, three out of the four top results are sponsored product ads.

Leverage Amazon Advertising

It’s important to note that customers in the UK use the word dustbin; In US English, customers would be searching for a garbage can or trashcan. That’s why you should make yourself familiar with your market to launch targeted PPC campaigns.

This includes choosing the right keywords, setting the right bid amounts, and testing different ad creatives to see what performs best. Using tools such as the PPC Optimizer for Amazon can help you optimize your campaigns and identify areas for improvement. The tool considers many advertising aspects to help you launch profitable campaigns.

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Monitor and Respond to Customer Feedback

By consistently monitoring and responding to customer feedback, you can differentiate yourself from the competition and build a reputation as a seller who values customer satisfaction. Not to mention, customer feedback has a direct impact on sales as people trust online reviews and use it to make informed buying decisions.

Also, customer feedback can help you identify areas for improvement. Respond to customer feedback to show that you care. What’s more, when responding to negative feedback, you can turn it into a positive review. Customers appreciate when businesses take the time to listen to their feedback and address any concerns they may have.

The good news is that you can start from scratch only some times you expand to a new Amazon market, at least when it comes to product ratings and reviews. Thanks to the Amazon global rating system, sellers can now take the reviews with them when selling internationally on Amazon - as long as the new product listing has the same product identifier.

On the Amazon UK website, product reviews from UK customers are displayed first; top reviews from other countries follow.

Monitor and Respond to Customer Feedback

Final Thoughts on Selling on Amazon UK in 2023

The UK marketplace presents lucrative growth opportunities for Amazon sellers - you can reach an international audience and leverage Amazon’s fulfillment network to effortlessly do so.

Nevertheless, success on Amazon UK is a short-term achievement; it requires ongoing monitoring and optimization of your sales and advertising efforts. It’s also important to stay informed on the local laws and regulations of the country to ensure compliance and build a profitable business.

With a range of tools and resources available to help you succeed, now is the perfect time to get started.

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With the right product and marketing strategy, selling on Amazon UK can be a great source of revenue. Learn more about how to find the best products to sell on Amazon in 2023!