How to sell on Amazon UK: fees, steps and selling plans

Published Friday 10 April 2026

Table of contents

• What is selling on Amazon?
• Understanding Amazon business models
• Steps to start selling on Amazon
• Managing your Amazon business finances
• FAQs on selling on Amazon

Key takeaways

• Choose the Professional selling plan if you expect more than 40 sales per month, as the £30 monthly fee becomes more cost-effective than paying £0.99 per item and gives you access to advertising and bulk listing tools.
• Start with one to three products to test the market and learn Amazon's systems before scaling up, focusing on understanding pricing, inventory management, and customer feedback.
• Calculate your true costs including Amazon's referral fees, FBA charges, and shipping expenses before setting prices to ensure each product remains profitable after all deductions.
• Use Amazon's reporting tools in Seller Central to track sales performance, inventory levels, and customer metrics, measuring results before and after any changes to optimise your strategy.

What is selling on Amazon?

Here's what you need to know about selling on Amazon.

Selling on Amazon means listing your products on Amazon's global marketplace, where customers can find and buy them directly. Over two million sellers use the platform, ranging from small businesses to individual entrepreneurs.

It's a powerful way to reach millions of potential customers without building an ecommerce website from scratch. You can manage everything from product listings to shipping yourself, or let Amazon handle the logistics for you.

Understanding Amazon business models

Before you start, it helps to know the different ways you can sell on Amazon. There are several selling models and fulfilment options to choose from.

You can choose from several selling models:

• Private label: Create and sell your own branded products
• Retail arbitrage: Resell products you buy from other retailers
• Wholesale: Buy products in bulk from suppliers to resell
• Handmade: Sell goods you craft yourself

You also need to decide how to fulfil orders:

• Fulfilment by Merchant (FBM): You store and ship products yourself
• Fulfilment by Amazon (FBA): Amazon stores, packs, and ships your products for you

Steps to start selling on Amazon

These steps cover everything from account setup to ongoing sales optimisation. Follow them to build a solid foundation for your Amazon business.

1. Understand Amazon's fee structure so you know your costs

Amazon's fee structure includes a monthly subscription and per-sale charges. Understanding these costs helps you price products profitably.

You'll encounter several types of fees. Key fees include:

• Professional account: £30 (excl. VAT) per month for unlimited listings
• Individual account: £0.99 per item sold
• Referral fees: Vary by category according to Amazon's current UK fee schedule
• FBA charges: Storage and fulfilment fees if you use Fulfilment by Amazon

2. Create a new Amazon account in your business name

You might already have a personal Amazon account. Set up a separate business account for selling. This helps you manage your finances and looks more professional.

3. Choose between Individual and Professional selling plans

Amazon offers two selling plans, and the right choice depends on your expected sales volume.

The Individual plan works well for low-volume sellers:

• Cost: £0.99 per item sold, no monthly fee
• Best for: Sellers expecting fewer than 40 sales per month
• Limitations: No access to advanced selling tools or advertising

The Professional plan suits higher-volume sellers:

• Cost: £30 (excl. VAT) per month, no per-item fee
• Best for: Sellers expecting more than 40 sales per month
• Benefits: Access to advertising, bulk listing tools, and detailed reporting

If you're trying out a few products to start, choose the Individual plan. You can upgrade to Professional once your sales volume grows. Learn how to increase sales.

4. Fill in the required Amazon account details, including billing information

Amazon asks for your company details and a credit card. They use this to charge your monthly subscription and cover any negative balance.

5. Find a price that's profitable and competitive

Competitive Amazon pricing means setting prices that deliver a good profit while helping your product stand out to customers.

Follow these essential pricing steps:

• Research competitors: Check similar products' prices and customer reviews to find your positioning
• Calculate true costs: Include Amazon fees, shipping, and product costs to know your margins
• Use pricing tools: Try apps like Profit Bandit to estimate your profit before listing

6. Choose the right category for the products you sell

Amazon offers many product categories. Choosing the right one helps customers find your product. Some items have restrictions, so check Amazon's category, product and listing restrictions before you list.

7. Create product listings that convert

Well-crafted product listings help customers find your products and make confident buying decisions.

Include these content essentials:

• Keyword-rich titles: Include terms customers search for
• Detailed descriptions: Answer common customer questions
• High-quality images: Show multiple angles and key features
• Accurate specifications: Prevent returns and negative reviews

8. Decide between self-fulfilment and Fulfilment by Amazon (FBA)

Fulfilment by Amazon (FBA) means Amazon stores, packs, and ships your products. Self-fulfilment means you handle storage and shipping yourself.

FBA offers several advantages:

• Prime eligibility: Access to Prime customers who expect free, fast shipping
• Returns handling: Managed customer service and returns through Amazon
• Storage included: No need for your own warehouse space

Self-fulfilment has its own advantages:

• Lower fees: Avoid FBA storage and fulfilment charges
• Full control: Manage packaging, shipping speed, and customer communication

9. Get your packaging ready and brand it to market your business

Branded packaging turns every parcel into a marketing opportunity for your business. If you're fulfilling orders yourself, you'll need:

• a laser printer for shipping labels
• shipping labels and packaging materials
• scales for accurately weighing packages and calculating shipping costs

If you use FBA, Amazon handles the outer packaging. You can still add branded inserts or internal packaging to create a memorable unboxing experience.

10. Start small and test the market with a few products

Starting small means launching with one to three products to learn the platform before scaling up.

Here's how to test effectively:

• Choose one to three products: Focus your energy on learning without overwhelming yourself
• Test different price points: Find what customers will pay for your products
• Learn the systems: Master inventory management, customer service, and payments
• Measure results: Track sales, costs, and customer feedback before expanding

11. Use customised offers and special promotions

Eligible sellers can use certain promotional tools in Seller Central. Gift options and promotional features may depend on the listing and fulfilment setup, so check what's available for your account.

12. Use Amazon's reporting to fine-tune your sales strategy

Amazon Seller Central reporting gives you detailed data on sales, inventory, and customer behaviour to help you make better decisions.

Focus on these key reports:

• Sales dashboard: Track daily, weekly, and monthly revenue
• Inventory reports: Monitor stock levels and reorder timing
• Customer metrics: Review feedback scores and return rates
• Seasonal trends: Prepare for seasonal peaks, which can significantly increase order volumes

13. Measure everything you can, especially when making changes

When you make changes to stock, presentation or promotions, measure your sales before and after to see what works best.

Selling on Amazon lets you reach one of the world's largest markets. It can also save you time on fulfilment. With the right strategy, you can succeed on Amazon.

Managing your Amazon business finances

Success on Amazon depends on profit, not just sales. With fees, shipping, and advertising costs reducing your profits, you need to track your numbers closely.

Accounting software helps you:

• Track costs in real time: see every fee, expense, and sale as it happens
• Monitor cash flow: know when Amazon payments arrive and when bills are due
• Calculate true profit margins: understand which products actually make money

With a clear view of your finances, you can make smart decisions to grow your business. Get one month free to see how Xero can simplify your Amazon accounting.

FAQs on selling on Amazon

Here are answers to some common questions about selling on Amazon.

Is it free to sell on Amazon?

No, selling on Amazon isn't free. The Individual plan charges £0.99 per item sold, while the Professional plan costs £30 (excl. VAT) per month. Both plans also include referral fees that vary by product category.

How much does it cost to be a seller on Amazon?

Your costs depend on your selling plan and sales volume. The Individual plan charges £0.99 per item sold with no monthly fee. The Professional plan costs £30 (excl. VAT) per month with no per-item fee. Both plans include category-specific referral fees, and you'll pay additional FBA fees if you use Amazon's fulfilment service.

Can I make £1,000 a month selling on Amazon?

Yes, many sellers earn £1,000 or more per month on Amazon. Your success depends on choosing the right products, pricing competitively, and managing costs carefully. Start by finding a niche with steady demand and healthy profit margins.

How much does Amazon take from a £100 sale?

Amazon typically takes £15 to £20 from a £100 sale. This includes a referral fee (usually 8% to 15%) plus any FBA fees for storage and shipping. Calculate your break-even point before listing to make sure your products stay profitable.

Do I need a business licence to sell on Amazon UK?

No, you don't need a specific business licence to sell on Amazon UK. However, if you're a sole trader earning more than £1,000 in a tax year, you must register with HMRC for Self Assessment.

If you set up a limited company, register with Companies House online for £50. Registration typically completes within 24 hours.

How long does it take to start making sales on Amazon?

Most new sellers see their first sale within one to four weeks of listing products. Your timeline depends on product demand, listing quality, and pricing. Products in popular categories with optimised listings and competitive prices tend to sell faster.