How to sell on Amazon UK: fees, FBA and is it worth it in 2026?
A plain-English guide to selling on Amazon UK: Individual vs Professional plans, referral fees, Fulfilment by Amazon, what to sell, VAT and tax, from someone who has done it.
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Amazon was one half of the online selling that let me leave my job in January 2017. It can move far more stock than eBay, but the fees are higher and the rules are stricter. Here is how it works now.
Individual or Professional?
| Individual | Professional | |
|---|---|---|
| Cost | 75p per item sold | £25 a month |
| Cheaper if you sell | 33 or fewer items a month | 34 or more items a month |
| Eligible for the Buy Box | No | Yes |
| Sponsored ads and bulk tools | No | Yes |
Both plans are plus VAT and plus selling fees. Source: Amazon UK pricing.
At 75p a sale, the Individual plan costs more than Professional once you sell 34 or more items a month. The Buy Box is the "Add to basket" button on a product page, and most sales go through it.
Amazon fees explained
- Referral fee: a percentage of the sale price, including postage, taken on every sale. Most categories are between 8% and 15%, with a minimum fee per item.
- Plan fee: 75p per item or £25 a month, as above.
- FBA fees, if you use it: a fulfilment fee per item, based on size and weight, plus monthly storage. Storage costs more from October to December.
Always work out your profit per item after all of these, plus the cost of the stock and getting it to Amazon.
FBA or ship it yourself?
Fulfilment by Amazon (FBA): you send stock to Amazon. It stores it, picks, packs, delivers and handles returns. Your items get Prime delivery, which helps them sell.
Fulfilled by merchant (FBM): you store and post orders yourself. Cheaper per item, but more work and slower delivery.
FBA suits small, light items that sell steadily. Large, heavy or slow-selling items can rack up storage fees.
What to sell on Amazon
Most small sellers use one of these models:
- Retail arbitrage: buying discounted items in shops or online and reselling them for more. Easy to start, hard to scale. Some brands and categories are restricted.
- Wholesale: buying branded stock in bulk from a distributor and selling it on existing listings.
- Private label: your own branded product, often made overseas. The biggest potential, and the biggest upfront cost and risk.
- Books and media: second-hand books can still work, especially textbooks.
Check whether a category or brand is gated before you buy anything. Some need approval and invoices.
Do the maths before you buy stock
Take an item that sells for £20 including delivery with FBA:
| Amount | |
|---|---|
| Sale price | £20.00 |
| Referral fee at 15% | −£3.00 |
| FBA fulfilment fee (example) | −£3.00 |
| Cost of the item | −£8.00 |
| Postage to Amazon, storage, VAT on fees (example) | −£1.00 |
| Profit before tax | £5.00 |
Fees vary by product, so use Amazon's revenue calculator with the exact item before buying. A thin margin disappears fast if items are returned or sit in storage.
VAT and tax
- Income tax: buying to resell is trading. Report profits over the trading allowance (£1,000 in 2026/27, £3,000 from April 2027) through Self Assessment.
- VAT: you must register once your taxable turnover goes over £90,000 in any 12 months. Amazon's fees are charged with VAT, which you can reclaim if you are registered.
- Records: keep receipts for stock, fees and postage. Amazon's reports make this easier.
Common questions
Is selling on Amazon worth it in 2026?
It can be, if you pick products with a healthy margin after fees and they sell steadily. It is not a quick win. Many new sellers lose money on stock they cannot sell.
Do I need a business to sell on Amazon UK?
No, you can sell as an individual or sole trader. Amazon still verifies your identity and bank details before you can sell.
Amazon or eBay?
eBay is easier for one-off and second-hand items. Amazon suits repeatable products in bigger volumes. See how to sell on eBay.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.