🇬🇧 Updated 2026-07-13 · 6 min read · every figure sourced & dated (dataset 2026.07)
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 if you know where the extra 0.35% hides. The catch: 20% VAT sits inside every price you list, and margins calculated on the gross price are fiction.
Amazon UK charges 5–15% by category (min £0.25) plus £25/month Professional. The January 2026 cuts matter for budget lines: clothing ≤£15 now pays just 5% (was 8%), £15–£20 clothing pays 10% (was 15%), and there's a new 8% band for Home items up to £20. eBay UK business sellers pay 12.9% on the full order including postage (electronics ~9.9%, jewellery 14.9%) + £0.30/£0.40 per order + a 0.35% regulatory operating fee most sellers forget to model. Etsy UK stacks 6.5% transaction fee + £0.16 listing + Etsy Payments at 4% + £0.20 — 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% + £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 5–15% by category with a £0.25 minimum. January 2026 brought cuts: clothing items at £15 or less dropped from 8% to 5%, £15–£20 clothing from 15% to 10%, a new 8% Home band for items up to £20, and grocery/supplements at £10 or less from 8% to 5%.
Most categories pay a 12.9% final value fee on the total (including postage) plus £0.30–£0.40 per order plus a 0.35% regulatory operating fee. Electronics run around 9.9%, jewellery up to 14.9%.
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.