Does It Cost to Sell on Amazon UK?

Selling on Amazon UK can be a lucrative venture for many entrepreneurs. However, it's crucial to understand the various costs involved in getting started and maintaining a successful storefront. This article will delve into the different fees and expenses associated with selling on Amazon UK, including account setup, listing fees, referral fees, and other hidden costs that sellers should be aware of.

When you decide to sell on Amazon UK, one of the first things you'll encounter is the choice between two types of selling accounts: Individual and Professional.

Individual Account: This option is ideal for sellers who plan to sell fewer than 35 items per month. There is no monthly subscription fee for this type of account. However, you will be charged a £0.75 fee per item sold. This might seem like a reasonable option if you have a small number of products and limited sales.

Professional Account: If you anticipate selling more than 35 items per month, a Professional Account is usually the better choice. It comes with a monthly subscription fee of £25 (excluding VAT). This account type does not have a per-item fee, which can be advantageous if you're planning to sell in larger volumes.

Referral Fees: Regardless of the type of account you choose, Amazon charges a referral fee on each sale. This fee is a percentage of the total sales price, which includes the item price, shipping cost, and any other charges. The referral fee varies by category, ranging from 7% to 15%. For instance, electronics typically have a referral fee of 7%, while clothing might have a fee of 15%.

Fulfillment Fees: If you use Amazon's Fulfillment by Amazon (FBA) service, there are additional fees to consider. FBA fees cover the cost of storing your products in Amazon's warehouses and handling the picking, packing, and shipping of your orders. As of 2024, the storage fee is £0.75 per cubic foot per month for standard-size items and £2.40 per cubic foot per month for oversized items. Additionally, FBA fulfillment fees are £2.50 per unit for standard-size items and £5.50 per unit for oversized items.

Other Costs:

• Shipping Costs: If you are not using FBA, you are responsible for handling shipping. These costs can vary widely depending on the size and weight of your items, as well as the shipping method you choose.
• Product Listing Fees: While Amazon does not charge a separate fee for listing products, you might incur costs related to creating high-quality product images, descriptions, and other content to make your listings attractive and competitive.
• Advertising Fees: To increase visibility, you might invest in Amazon's advertising options like Sponsored Products or Sponsored Brands. These costs can vary depending on your ad budget and competition in your product category.

Example Cost Breakdown:

Cost Type	Individual Seller	Professional Seller
Monthly Subscription	£0	£25
Per Item Fee	£0.75 per item sold	£0
Referral Fee	7%-15% of total sales price	7%-15% of total sales price
Standard FBA Storage Fee	£0.75 per cubic foot per month	£0.75 per cubic foot per month
Oversized FBA Storage Fee	£2.40 per cubic foot per month	£2.40 per cubic foot per month
Standard FBA Fulfillment Fee	£2.50 per unit	£2.50 per unit
Oversized FBA Fulfillment Fee	£5.50 per unit	£5.50 per unit

Conclusion: Selling on Amazon UK involves various costs, from account setup to ongoing fees for sales and fulfillment. Choosing the right type of account and understanding the different fees can help you manage your expenses and maximize your profits. While there are costs associated with selling, careful planning and strategic management can make selling on Amazon UK a profitable endeavor.