Amazon FBA UK Seller Guide 2026: Requirements, Costs & Setup

Amazon FBA (Fulfilment by Amazon) remains one of the most popular ways to sell products online in the UK. Whether you're a local entrepreneur or an international seller, this guide covers everything you need to know about starting and running an Amazon FBA business in the UK in 2026.

2026 Fee Reduction

Amazon has announced one of their largest-ever fee reductions for 2026, lowering fees by an average of £0.15 per unit sold in European stores. Good news for FBA sellers!

What is Amazon FBA?

Fulfilment by Amazon (FBA) is a service where Amazon stores, picks, packs, and ships your products. They also handle customer service and returns. You focus on sourcing products and marketing; Amazon handles the logistics.

How FBA Works

  1. You source products and ship them to Amazon's UK fulfilment centres
  2. Amazon stores your inventory in their warehouses
  3. Customers order your products on Amazon
  4. Amazon picks, packs, and ships the order
  5. Amazon handles customer service and returns
  6. Amazon pays you (minus fees) every two weeks

Benefits of FBA

  • Prime eligibility – Your products show "Prime" badge, increasing sales
  • No warehouse needed – Amazon stores your inventory
  • Customer trust – "Fulfilled by Amazon" builds confidence
  • Scalability – No logistics constraints as you grow
  • Multi-channel – Can also fulfil orders from other platforms

Requirements to Sell on Amazon UK

Account Registration Requirements

  • Business email address or Amazon customer account
  • Chargeable credit card (international cards accepted)
  • Valid passport or national ID for identity verification
  • Company registration details (if registering as a business)
  • VAT number (if VAT registered – required for most FBA sellers)
  • Valid phone number
  • Bank account for receiving sales proceeds

Business Structure Options

Structure Pros Cons
Sole Trader Simple setup, less admin Personal liability, less credibility
Limited Company Limited liability, tax benefits, professional image More admin, Companies House filings
Partnership Shared responsibility Joint liability, can be complex

Recommendation

Most serious Amazon sellers operate as a Limited Company. It provides liability protection, potential tax advantages, and a more professional appearance to suppliers and customers.

Amazon Seller Account Plans

Plan Cost Best For
Individual £0.75 per sale Fewer than 40 items/month
Professional £25/month 40+ items/month, serious sellers

Setting Up Your UK Company for Amazon FBA

To sell on Amazon UK as a business, you'll need:

1. Register Your Company

  • Register with Companies House to get a Company Registration Number (CRN)
  • Choose a company name that reflects your brand
  • Appoint at least one director
  • Provide a UK registered office address

2. Register for Corporation Tax

  • Register with HMRC within 3 months of starting business activity
  • Obtain your Unique Taxpayer Reference (UTR)

3. Open a Business Bank Account

  • Required to receive Amazon payouts
  • EMIs like Wise, Revolut, or Payoneer work well for international sellers

4. Verify Identity with Companies House

  • Under ECCTA 2023, all directors must verify their identity
  • Can be done via GOV.UK (biometric passport) or through an ACSP

VAT & EORI Requirements

VAT Registration

Important

If you store goods in the UK (which FBA requires), you typically need to register for UK VAT regardless of where you're based. This is true even if your turnover is below the £90,000 threshold.

When VAT registration is mandatory:

  • You store goods in the UK (FBA inventory)
  • Your UK taxable turnover exceeds £90,000
  • You expect to exceed £90,000 in the next 30 days

VAT basics for Amazon sellers:

  • Standard VAT rate: 20%
  • Some products have reduced (5%) or zero (0%) rates
  • You charge VAT on sales and can reclaim VAT on business purchases
  • Quarterly VAT returns via Making Tax Digital

EORI Number

If you're importing goods into the UK (from China, EU, etc.), you need an EORI number (Economic Operators Registration and Identification):

  • Free to apply via HMRC
  • Processing time: 5-10 working days (can be longer)
  • Required for: Customs declarations, import/export documentation
  • Format: GB + VAT number + 000 (e.g., GB123456789000)

Amazon FBA UK Costs Breakdown 2026

Startup Costs

Item Cost Range
Company formation £50-150
Initial inventory £500-5,000+
Product photography £100-500
Branding/packaging £200-1,000
Shipping to Amazon £500-2,000
Total typical startup £2,500-5,000

Ongoing Amazon Fees

Fee Type Amount
Professional seller subscription £25/month
Referral fee 8-15% of sale price (varies by category)
FBA fulfilment fee £2-5+ per unit (size/weight dependent)
Storage fee (standard) £0.75-2.40 per cubic foot/month
Storage fee (peak Oct-Dec) Higher rates apply

2026 Fee Reductions

Amazon has reduced FBA fulfilment fees by ~£0.15/unit on average for 2026. Check the current rate card for exact figures by product size.

Guide for Non-UK Residents

Non-UK residents can absolutely sell on Amazon UK. Here's what you need to know:

Option 1: Form a UK Limited Company

  • Most recommended approach
  • Non-residents can be directors and shareholders
  • Need a UK registered office (virtual office is fine)
  • Must verify identity under ECCTA
  • Register for UK VAT (required for FBA)
  • Get UK EORI for imports

Option 2: Sell via Your Home Country Entity

  • Possible but more complex
  • Still need UK VAT registration
  • Still need UK EORI
  • May face additional compliance requirements

Banking for Non-Residents

  • Traditional UK banks rarely accept non-resident applications
  • Use EMIs: Wise Business, Revolut Business, Airwallex
  • Payoneer works well for receiving Amazon payouts

Supplier Verification

If you're sourcing from China, verify your suppliers before placing orders. Check their business registration, factory ownership, and track record to avoid scams and quality issues.

Step-by-Step Setup Process

  1. Form your UK company

    Register with Companies House. Takes 3-24 hours online.

  2. Register for Corporation Tax

    Submit CT41G form to HMRC. Required within 3 months.

  3. Open business bank account

    Apply to EMIs like Wise or Revolut. Usually 1-3 days.

  4. Register for VAT

    Apply via HMRC online. Allow 2-4 weeks for VAT number.

  5. Apply for EORI number

    Required if importing. Free via HMRC, 5-10 days.

  6. Create Amazon Seller Account

    Register at sellercentral.amazon.co.uk with business details.

  7. Source products

    Find suppliers, negotiate terms, verify their legitimacy.

  8. Create product listings

    Professional photos, optimised titles and descriptions.

  9. Ship inventory to Amazon FBA

    Follow Amazon's prep requirements and labelling guidelines.

  10. Launch and optimise

    Monitor performance, adjust pricing, build reviews.

Key Takeaways

  • Amazon FBA fees are reducing in 2026—good news for sellers
  • UK Limited Company is the recommended structure
  • VAT registration is usually required for FBA sellers (storing goods in UK)
  • EORI number needed for importing products
  • Non-residents can sell on Amazon UK with proper setup
  • Budget £2,500-5,000 for typical startup costs
  • Verify Chinese suppliers before placing orders

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