How To Sell On Amazon UK?

With £23.6 billion in sales (in the UK only) and around 500 million visits monthly, Amazon is the go-to e-commerce marketplace for budding entrepreneurs. 

Whether you’re trying to test out a new product or grow your business online, here’s how to sell on Amazon UK. 

Checklist For Selling on Amazon UK

Before joining Amazon’s marketplace as a seller, there are a few things you need to consider and requirements you have to meet. 

Here are the essentials for a successful start on Amazon. 

1. Can you sell that on Amazon? Amazon has certain rules and requirements for sellers, depending on the category, product, and brand they want to sell. Some categories require having a specific account, others require approval to sell, and some products cannot be sold by third-party sellers on the platform. For example, you can’t sell used pet supplies. 
2. Consider the cost: Amazon sellers are subject to different fees, including subscription, selling, shipping, and FBA (Fulfilment by Amazon) fees. 
3. Figure out the VAT requirements: Some businesses that sell on Amazon are required to register for a VAT number. Whether you’ll need one and how much it will cost depends on the fulfilment model, the place of the business establishment, and the annual sales. 
4. Prepare the paperwork: Businesses that want to sell on Amazon need:

• A business mail address 
• A credit card (international or otherwise) and a bank account
• Valid ID or passport. 
• Company registration details. 

5. Build a strong business strategy: A well-structured business plan can help sellers deliver quality products on time, which will boost their reputation and in turn, sales. 
6. Create a marketing plan: Consider how you want to present your products in pictures and what can set you apart from your competitors.  All images have to be at least 500×500 pixels and the product has to fill at least 80% of the image. 

Think about shopping habits as well. Did you know that a third of all online shopping in the UK is done on mobile devices? With this in mind, it’s important to think about how the image will look on both desktop and mobile. 

7. Work out delivery details: Amazon sellers can either take care of the delivery themselves or use Fulfilment by Amazon and let Amazon take care of labelling, packaging, and shipping.

Selling Plans in Amazon UK

Potential Amazon sellers can choose between two plans, including:

• Individual Plan: An Amazon individual seller in the UK can sell up to 35 products per month. This plan costs £0.75 per unit sold. 
• Professional Plan: There is no limit to how many products professional sellers can sell in a month and get access to additional tools, like APIs and programs like Launchpad or Handmade. They pay a monthly subscription fee of £25 (excl. VAT), with additional selling fees.

Amazon UK Seller Fees

All sellers on Amazon, regardless of their selling plan, pay a referral fee on every sale they make. The amount of the referral fee usually depends on what category the products belong in and can be anywhere between 8% and 15% of the total transaction.

Furthermore, Amazon charges sellers who use its FBA services a flat fee per unit (based on the type of product, its weight, and dimensions) and a monthly storage fee. Sellers might have to pay extra if their products sit in storage for a long period of time.

Other costs for Amazon UK sellers include:

• Inventory fees, such as overage fees and removal order fees.
• High-volume listing fees, if you go over  2 million SKUs in a month
• Refund administration fee which applies if you refund an order that has been paid. In this case Amazon will refund the referral fee for the item, deducting the Refund administration fee. 

Sending and Receiving International Payments

One of the largest benefits of selling products on Amazon is the ability to market your products to a wider audience, including places from all over the world.

If you’re selling in other places than the UK, such as other European countries, you’ll either need to open a bank account in the country of that Amazon marketplace or use the Amazon Currency Converter, which will send the money directly to your local account in your local currency.  Amazon also offers sellers the option to get paid via Hyperwallet, a third-party payment service provider. 

Is it still profitable to sell on Amazon?

In short, yes. The UK has a very strong online purchase penetration rate that has gone up to an incredible 87% in 2020. And as the number one online retailer in the country, Amazon UK gives you access to bigger markets than any other site right now. 

Amazon UK Fulfilment Method

Fulfilment by Amazon is a service provided by the company that helps businesses handle logistics. In other words, businesses that can’t manage their own inventory and shipping can use FBA in the UK and let Amazon handle the packing, labelling, and shipping of a business’ orders.

Currently, around  45% of Amazon UK sellers are using this service.

As part of the package, Amazon also takes care of customer service and returns the orders when necessary.

Bottom Line 

Selling on Amazon is one of the best ways to grow your business and boost your sales. Amazon offers a competitive marketplace and plenty of benefits, from detailed business reports to services like FBA.