🇬🇧 Updated 2026-07-13 · 6 min read · every figure sourced & dated (dataset 2026.10)
The UK is the friendliest of the four markets we track for low-priced products in 2026 — Amazon cut fees exactly where small sellers live, and eBay's structure is transparent once you know that the headline rate differs by category and that an extra 0.35% sits on top. The catch: 20% VAT sits inside every price you list, and margins calculated on the gross price are fiction.
Amazon UK charges 5–20% by category (min £0.25) plus £25/month Professional, and a 2–3% digital services fee on those fees. The January 2026 cuts matter for budget lines: clothing is 5% to £15, then 10% to £20, then 15%, Home 8% to £20, then 15%, grocery 5% to £10, then 15%. eBay UK business sellers pay a category fee on the full order including postage — 10.9% for most categories, 11.9% for clothing and home, 9.9% for electronics, 14.9% to £1,000, then 4% on the rest for jewellery — plus £0.30 at or under £10, £0.40 above and a 0.35% regulatory operating fee most sellers forget to model. The flat 12.9% that circulated in older guides is gone. Etsy UK stacks a 6.5% transaction fee + £0.16 per order listing + Etsy Payments at 4% + £0.20, and a 0.48% regulatory operating fee for sellers established in the UK — note UK payment processing is a full point higher than the US rate. Shopify UK Basic runs £25/month with Shopify Payments at 2% + £0.25 for online cards — cheaper processing than the US, but you bring every visitor yourself, so your real cost of selling is your ad CAC.
First, on price: UK listings are consumer-facing and VAT-inclusive. A £24 product at 20% VAT is £20 revenue + £4 owed to HMRC. Every margin in our comparator is computed on the VAT-out amount — if a calculator doesn't ask for your VAT status, it's lying to you by four points or more. Second, on fees: marketplaces charge 20% VAT on their fees, which VAT-registered sellers reclaim — we show it as a memo line, not a cost.
The £135 rule decides who collects what: consignments at £135 or less have supply VAT charged at checkout (the marketplace usually handles it), so the parcel clears customs without a second VAT event. Above £135, import VAT and duty are due at the border — price them into your landed cost with the shipping & landed-cost estimator.
Generally 5–20% by category with a £0.25 minimum. January 2026 brought cuts at the bottom of the price range: clothing is now 5% to £15, then 10% to £20, then 15%, there is an 8% to £20, then 15% structure for Home, and grocery is 5% to £10, then 15%. Amazon also charges a 2–3% digital services fee on its fees.
Final value fees run 3–14.9% by category on the total including postage, plus £0.30 at or under £10, £0.40 above and a 0.35% regulatory operating fee. Most general categories are 10.9%; clothing and home are 11.9%; electronics are 9.9%; jewellery is 14.9% to £1,000, then 4% on the rest. The old flat 12.9% fee no longer applies.
For consignments of £135 or less sold into the UK, supply VAT (20%) is charged at the point of sale — by you or the marketplace — instead of import VAT at the border. Above £135, normal import VAT and duty apply at customs.
Yes — UK consumer prices are VAT-inclusive. A £24 listing at 20% VAT is £20 of revenue plus £4 you owe HMRC (if VAT-registered). Compute margins on the VAT-out amount, and remember VAT charged on marketplace fees is reclaimable.
Every commission, per-order fee, monthly fee, payment rate and regulatory fee above is read from the Farolane dataset (2026.10) when this page is built, so it cannot drift from the calculators. Hand-written figures, with no dataset home yet: the 20% UK VAT rate and the £135 consignment threshold.