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Thinking of selling on Amazon in the UK? You’ll be joining hundreds of thousands of sellers who use the platform to make money and get their products out there.
Whether you have a clothing brand, a handmade craft business, or you’re manufacturing household products, read on for tips on how to start selling on Amazon.
Being a successful Amazon seller involves good customer service, careful stock management, and a strong brand. But before we get into how to sell on Amazon, let’s dig into whether it’s worth it in the first place.
Amazon is the largest online marketplace in the UK, with the latest study showing 281,000 UK sellers (from a 2020 survey), so you may be wondering if it’s worth the effort.
It can be tricky to stand out in such a busy marketplace. But 66,500 small and medium sized businesses sold on Amazon marketplace in 2020, according to Statistica, so it’s not just large corporations dominating the platform.
A few benefits include:
If you get your product right, nail the description, and have eye-catching imagery, then you could be on your way to earning passive income.
Amazon has two different price plans: individual and professional. Amazon UK fees also vary depending on your product category and whether you choose to ship your products yourself or use Amazon’s fulfilment service.
Selling on Amazon fees
75p for each unit sold
£25 a month (plus VAT) to sell unlimited units
8% to 15%
See Amazon fulfilment fees for more information on shipping costs and fulfilment
When comparing Amazon professional selling fees, the easiest way to choose which plan is right for you is to consider how much you sell each month and how much you want to grow your business.
If you sell fewer than 35 items a month – or are still in the early stages of planning your stock – the Amazon individual plan will probably work better for your business. Whilst this keeps costs lower, the main drawback is that you won’t get access to the advanced selling and advertising tools on the premium plan.
The Amazon professional plan is a better option if you plan to sell more than 35 items each month. Whilst you’re paying a higher fee up front, the cost will work out less the more you sell.
You’ll also have more opportunities to grow your business. The Amazon professional plan has more ways to advertise your products and be more visible on product detail pages. You’ll be able to use advanced selling tools, such as APIs and reports.
However, Amazon has been steadily increasing fees and advertising costs for sellers. The latest increase to fees came in May 2022, with Amazon raising the price of its fulfilment services in response to rising inflation – so it’s worth checking Amazon for any new developments.
According to reports, Amazon tripled the amount it earned from independent seller fees in Europe between 2017 and 2022. This is more than the rise in sales, which doubled. So while Amazon continues to be a popular platform for small businesses, its associated costs may make some sellers think twice.
It’s worth noting too, the global tech giant has been under investigation by the Competition and Markets Authority (CMA) for suspected anti-competitive pricing. The CMA is looking into whether Amazon favours its own sellers over third-party sellers.
To start selling on Amazon marketplace, you need to:
Looking for a business bank account? Here’s a rundown of the best business bank accounts out there.
To make money selling on Amazon (or anywhere) then you’ll need to choose the right product.
Top selling products on Amazon include:
It’s important to optimise your product listing page so it appears high up the search results and in front of as many potential customers as possible.
First you need a product title that people are searching for. Then choose a category, write a detailed description, and add photos that help your product stand out on the listings page. Meanwhile, encouraging and engaging with customer reviews will help you build a brand.
For more tips, read Amazon’s guide to optimising a product listing.
Fast selling products on Amazon will usually be priced between £10 and £50 for impulse buys. If it’s priced too low then you won’t make a profit, but if it’s too expensive people won’t find your product as it will appear too far down the listings page.
Make sure you keep track of what’s selling well in your Seller Central dashboard and adjust your prices if you need to. You can also use a price tracking tool to help you adjust your price positioning on the market.
Look at what sells well on Amazon. This can change depending on the time of year, market conditions, and business trends. For example, sales of things like gym equipment and pet supplies skyrocketed during the pandemic when shops and fitness studios were closed.
Check the ‘Frequently bought brands’ and ‘What do other customers buy’ sections for inspiration for related products. This can also be useful if you’re looking to develop a new product for your business.
You can also view Amazon Best Sellers, which is updated every hour. You can view this by category and see what products are trending to help give you inspiration.
Other lists you might find useful for product ideas:
Or have you found a gap in the market? This can be a great opportunity to stand out in the product listings if it’s solving a problem for consumers, but there aren’t any other sellers out there doing it quite like you.
If a product you sell accidentally injures someone or damages something, then you could be held responsible. That’s why product liability insurance is a good idea to protect you and your products from a potential legal claim.
With online retailer insurance you can make sure you have the cover you need for your business, whether you design products yourself or are selling items from a third-party manufacturer.
VAT regulations for Amazon
As with any business, you only need to register for VAT in the UK if:
What’s your experience selling on Amazon? Let us know in the comments below.
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Catriona Smith is a content and marketing professional with 12 years’ experience across the financial services, higher education, and insurance sectors. She’s also a trained NCTJ Gold Standard journalist. As a Senior Copywriter at Simply Business, Catriona has in-depth knowledge of small business concerns and specialises in tax, marketing, and business operations. Catriona lives in the seaside city of Brighton where she’s also a freelance yoga teacher.
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