Starting Amazon FBA in the UK: What You Need Before You Sell

1. Decide how you will operate the business

You do not automatically need a limited company to start selling. GOV.UK identifies sole trader and limited company as the two common structures, and explains that the choice affects your tax position, record-keeping and legal responsibilities.^[4]

A sole trader is usually the simpler structure to begin with, but you are personally responsible for the business's debts. GOV.UK says a sole trader can start trading without registering straight away, but must register for Self Assessment if business income exceeds £1,000 in a tax year.^[4]

A limited company is a separate legal entity with its own filing and administrative responsibilities. The right choice depends on your circumstances, risk, tax position and plans, so get professional advice if you are unsure.^[4]

Whichever structure you use, keep business records from the first purchase. If you are self-employed, HMRC requires records of business income and expenses for your Self Assessment return.^[7]

As a practical starting point, keep these records:

• supplier invoices and order confirmations
• product costs, delivery and preparation costs
• Amazon fees and remittances
• stock purchases, removals, returns and disposals
• sales, refunds and other income
• VAT records if you are VAT registered
• evidence supporting product safety and authenticity where relevant

A separate business bank account is sensible for control and bookkeeping, even where it is not a universal legal requirement.

2. Open and verify an Amazon selling account

Amazon's UK registration process requires identity, address, payment and bank-account checks. Amazon says sellers should be ready with a government-issued ID, business documentation where applicable, proof of business or residential address, a chargeable credit card and bank-account details.^[1]

You will manage listings, inventory, payments, account information and performance through Seller Central.^[1]

Amazon offers two main selling plans. The Individual plan is charged per item sold, while the Professional plan has a monthly subscription. Amazon's current UK pricing page lists the Individual charge as £0.75 per item sold and the Professional plan as £25 excluding VAT per month. Both plans can also incur selling fees.^[2]

The better plan depends on your expected volume and the tools you need. Do not choose only by the headline subscription cost. Check whether your category, advertising plans, reports and expected sales volume make one plan more suitable.

3. Choose products you are allowed to sell

Amazon does not treat every product or category in the same way. Some categories are open, some require approval, some require a Professional plan, and some products cannot be sold by third-party sellers.^[1]

Before buying stock, check:

1. whether your account is eligible for the category
2. whether the brand or product requires approval
3. whether the condition is permitted
4. whether the product is restricted for FBA
5. whether you can provide the required invoices or compliance evidence
6. whether the listing matches the exact product, pack size and variation

A product being visible on Amazon does not prove that you are authorised to sell it. Check the approval position in Seller Central before committing money to stock.

4. Make sure the listing and product identity are correct

Amazon says a listing normally needs a product identifier such as a GTIN, UPC, ISBN or EAN, along with your own SKU, offer details, product information, keywords and images.^[1]

For an existing product, you will usually match your offer to the correct product detail page. For a new product, you may need to create a new listing and provide the product identity and catalogue information.

For retail or online-arbitrage stock, check the physical product against the listing before sending it to FBA. Confirm the brand, model, EAN or ASIN, pack quantity, size, colour, condition, expiry information and included accessories. A listing that looks similar is not necessarily the same product.

5. Understand VAT before you scale

Using FBA does not by itself answer every VAT question. Your position can depend on where your business is established, where stock is held, where goods are sold, and how your fulfilment model operates.

For a UK-established business, GOV.UK says VAT registration is required when taxable turnover exceeds £90,000 in the previous 12 months or is expected to exceed £90,000 in the next 30 days. Voluntary registration is also possible below the threshold.^[5]

There are additional rules for businesses established outside the UK that supply goods or services to the UK, and cross-border stock movements can create separate obligations. Do not rely on the UK turnover threshold alone if you use stock outside the UK or sell into other marketplaces.

For VAT purposes, keep a clear record of sales, returns, fees, purchases, import costs and the treatment used for each transaction. Ask an accountant who understands marketplace selling if you are unsure about registration, VAT recovery, invoices or stock held in another country.

6. Check imports, customs and an EORI number

If you buy goods from outside the UK or move stock across a UK border, you may need customs paperwork as well as product and VAT checks. GOV.UK explains that an EORI number may be needed when moving goods between Great Britain and another country, between Great Britain and Northern Ireland, or between other specified UK routes.^[6]

The exact import process depends on the goods, origin, destination and customs procedure. GOV.UK's import guidance covers tax, duty, licences and certificates that may apply.^[10]

Before importing, confirm:

• who is responsible for the customs declaration
• which business is the importer of record
• the correct commodity code
• the product's country of origin
• whether a licence or certificate is required
• how import VAT and duty will be paid and recorded
• whether the goods can legally be sold in the UK

Do not assume that a supplier or courier has handled every obligation correctly. Keep the customs and import records with the purchase evidence.

7. Treat product safety as your responsibility

UK product safety obligations depend on the product and on your role in the supply chain. GOV.UK states that businesses that make, import, distribute or sell consumer products in the UK are responsible for making sure those products are safe and meet relevant labelling requirements.^[8]

Manufacturers and importers may need technical documentation, appropriate labels, safety instructions and evidence that relevant requirements have been met. Product-specific rules can apply differently in Great Britain and Northern Ireland.^[8]

You should also keep supplier and traceability records. GOV.UK says businesses must keep records identifying the suppliers of products they sell, and must respond appropriately if they become aware of a safety risk or consumer incident.^[8]

For a beginner, the safest approach is to avoid products where you cannot establish the supply chain, authenticity, safety documentation or required labelling. This is particularly important for products such as electrical goods, toys, cosmetics, supplements, food, medical products, batteries and products aimed at children.

8. Check packaging responsibilities

Packaging rules can apply to businesses that supply or import packaged goods. GOV.UK says obligations under extended producer responsibility for packaging depend on factors such as turnover, packaging tonnage and the packaging activities the business carries out.^[9]

You may need to examine packaging EPR if you:

• import packaged products into the UK
• sell products under your own brand
• place products into packaging
• supply packaging to UK customers
• supply or import larger quantities of packaging

The thresholds and reporting duties are not a simple rule that applies identically to every small seller. Check the current GOV.UK guidance using your turnover, packaging weight and business activity. Keep packaging data from the beginning if you may become obligated later.

9. Calculate the real cost before sending stock to FBA

The sale price is not the profit. Your working calculation should include at least:

• purchase cost
• inbound delivery
• preparation and labelling
• referral fee
• FBA fulfilment fee
• storage
• returns and refunds
• advertising
• VAT treatment
• import VAT and duty where relevant
• removal or disposal costs
• selling-plan cost
• currency or payment costs where relevant

Amazon says referral fees vary by category, and FBA fulfilment costs depend on factors such as product type, dimensions and weight. Storage is charged separately.^[2]

Use current product-specific figures rather than a generic percentage. Amazon's Revenue Calculator can help compare fulfilment methods, but it does not remove the need to check your own costs and tax treatment.^[2]

A product can show a positive margin in a quick calculation and still be a poor purchase if it is restricted, slow-moving, difficult to prep, vulnerable to returns or likely to incur unexpected fees.

10. Prepare the first FBA shipment

Once the account, product and economics are checked, create or convert the listing to FBA, prepare the stock and follow Amazon's current packaging and preparation instructions. Amazon's FBA process is built around sending products to its fulfilment centres, where Amazon receives and stores them before handling customer orders.^[3]

Before sending the first shipment, confirm:

• the correct listing and fulfilment channel
• the quantity and condition of each item
• labels, packaging and prep requirements
• carton and shipment information
• the destination fulfilment centre or centres
• the evidence you are keeping for the purchase
• enough cash to cover stock, shipping, fees and delays

Do not send a large first shipment simply because the spreadsheet shows a theoretical profit. Start with a manageable quantity and learn how your account, category and stock process behave.

A simple first-product checklist

Before buying or sending a product to FBA, you should be able to answer yes to these questions:

• Is the product identity and condition confirmed?
• Am I allowed to sell this category, brand and product?
• Can I provide acceptable purchase and compliance evidence?
• Have I checked the product-specific Amazon fees?
• Have I included inbound, prep, storage, returns, advertising and tax assumptions?
• Do I understand the import and EORI position if the goods cross a border?
• Have I checked relevant safety, labelling and packaging obligations?
• Can I afford to hold the stock if it sells more slowly than expected?
• Do I have a record of the supplier, order, assumptions and decision?

If the answer to any of these is no, pause before buying.

Final view

Starting Amazon FBA in the UK is mainly an exercise in getting the foundations right. You need a verified selling account, products you are permitted and equipped to sell, realistic costing, proper records, and a process for checking tax, import, safety and packaging responsibilities.

FBA can remove much of the day-to-day storage and dispatch work, but it does not transfer every business responsibility to Amazon. You remain responsible for the decisions behind the stock you buy and the products you offer.