UK AMAZON SELLERS

Amazon UK vs Amazon US — Key Differences Every Seller Should Know

By Brandhunterz Ltd | Company No: 15342697 | 13 minute read

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Amazon UK and Amazon US are the two largest Amazon marketplaces in the English-speaking world — and while they share the same underlying platform the same FBA infrastructure and the same core selling mechanics they are meaningfully different businesses operating in different regulatory environments with different fee structures different competitive landscapes and different buyer behaviours. Understanding these differences is essential whether you are a UK seller considering expanding to the US marketplace a US seller looking to enter Amazon UK or a new seller trying to decide which marketplace to start with.

We are Brandhunterz Ltd — a UK registered wholesale sourcing company (Company No: 15342697) — and in this complete comparison guide we cover every key difference between Amazon UK and Amazon US that matters for wholesale FBA sellers — from market size and fee structures to VAT versus sales tax regulatory requirements product category differences and the practical considerations of running an FBA operation in each marketplace.

Amazon UK vs Amazon US Key Differences Wholesale FBA Sellers Complete Comparison Guide

💡 Quick Summary

Amazon US is significantly larger than Amazon UK with a higher customer base and higher average order values — but also more competition higher referral fees in many categories and a complex state-by-state sales tax system rather than the UK’s straightforward VAT framework. Amazon UK has lower FBA fulfilment fees for standard products a simpler tax structure and less competition in most wholesale categories making it a more accessible starting point for new sellers. UK sellers expanding to Amazon US need a US bank account or a service like Payoneer VAT-equivalent sales tax compliance and an understanding of the higher competition environment they are entering.

Market Size — Amazon US Is Significantly Larger

The most fundamental difference between the two marketplaces is scale. Amazon US generates far more annual revenue than Amazon UK and has a significantly larger active customer base. This means higher sales potential for any given product on Amazon US — but it also means more competing sellers more sophisticated competition and higher advertising costs for sellers trying to gain visibility:

Metric Amazon UK Amazon US
Relative market size Smaller — strong but regional Largest Amazon marketplace globally
Currency British Pounds — £ US Dollars — $
Number of active sellers Lower — less competition Higher — more competition
Average order value Moderate Generally higher
Seller Central domain sellercentral.amazon.co.uk sellercentral.amazon.com

For most UK wholesale sellers starting out Amazon UK is the right first marketplace — the lower competition environment means new sellers can establish themselves and win Buy Box share more easily while learning the platform. Amazon US is a natural expansion market for established UK sellers with proven products and processes — but it should be approached as an expansion move not a starting point for those new to FBA.

Fee Structures — UK and US Differ on Referral and FBA Fees

Both marketplaces charge referral fees and FBA fulfilment fees — but the rates differ between UK and US and the way prices are displayed also differs. In the UK all prices displayed to buyers are inclusive of VAT — Amazon’s referral fee is calculated on the VAT-inclusive price. In the US prices are displayed exclusive of sales tax which is added at checkout — Amazon’s referral fee is calculated on the pre-tax price.

Fee Type Amazon UK Amazon US
Professional subscription £25 per month plus VAT $39.99 per month
Referral fee — most wholesale categories 8% to 15% of VAT-inclusive price 8% to 17% of pre-tax price
FBA fulfilment fee — standard small item From £2.70 per unit From $3.22 per unit
FBA storage fee — standard size per cubic foot £0.51 to £1.21 per cubic foot $0.87 to $2.40 per cubic foot

💡 Always Calculate Fees in the Correct Currency Before Sourcing

Use AMZScout to calculate your exact FBA fees for any ASIN on both Amazon UK and Amazon US before deciding which marketplace to source for. The fee calculator shows you the referral fee FBA fulfilment fee and estimated net profit for any selling price on either marketplace — ensuring you only source products with confirmed profitable margins in the correct local currency.

Tax — VAT in the UK vs Sales Tax in the US

The tax framework difference between Amazon UK and Amazon US is one of the most significant practical differences for sellers operating across both marketplaces. The two systems work in fundamentally different ways:

Amazon UK VAT Registration Certificate and Amazon US Sales Tax Nexus Map Side by Side on Desk Beside Laptop Showing Seller Central Tax Settings Page for Both UK and US Marketplaces

VAT on Amazon UK

In the UK all goods sold to consumers must display VAT-inclusive prices. The standard UK VAT rate is 20% — though some product categories attract reduced rates of 5% or zero. Once your Amazon UK business turnover exceeds the current UK VAT registration threshold — confirmed at GOV.UK as this changes periodically — you are legally required to register for VAT charge VAT on your sales and submit quarterly VAT returns to HMRC. Amazon UK automatically handles the collection and remittance of VAT on sales made to UK buyers through Amazon’s marketplace facilitator rules — but as the seller you are still responsible for registering your own VAT number and accounting for input VAT on your wholesale purchases. Many UK FBA sellers register for VAT voluntarily before reaching the threshold because VAT registration allows you to reclaim the VAT on your wholesale stock purchases which improves your effective margin.

Sales Tax on Amazon US

In the US there is no federal sales tax — each of the 50 states sets its own sales tax rate and rules independently. Amazon has marketplace facilitator laws in place in most US states meaning Amazon collects and remits sales tax on behalf of sellers for sales made to buyers in those states — which significantly simplifies compliance for most sellers. However UK sellers expanding to Amazon US need to understand the concept of sales tax nexus — which means having a sufficient business presence in a US state to trigger a sales tax obligation — and should seek US tax advice before beginning to sell. Unlike VAT there is no input tax credit system in US sales tax — you cannot reclaim sales tax paid on your US purchases the way UK sellers can reclaim VAT.

Tax Aspect Amazon UK — VAT Amazon US — Sales Tax
Rate structure Single national rate — 20% standard 50 different state rates — 0% to 10%+
Seller registration required Yes — above threshold or voluntary Depends on nexus in each state
Amazon collection and remittance Yes — for UK marketplace sales Yes — in most states under facilitator laws
Input tax recovery on purchases Yes — VAT reclaimable on stock No — sales tax is a cost not reclaimable
Complexity for new sellers Lower — single system to understand Higher — multi-state complexity

Product Categories — What Sells Differently on UK vs US

While many product categories exist on both Amazon UK and Amazon US there are meaningful differences in what performs well on each marketplace driven by consumer preferences and cultural differences:

Category Observation Amazon UK Amazon US
Health and Beauty Very strong — UK consumers highly engaged with health and wellness products Extremely large — highest competition — dominated by established brands and private label
Grocery and Gourmet Food Growing category — UK shoppers increasingly comfortable buying food online Very large — competitive — Amazon Fresh and Whole Foods integration creates additional complexity
Sports and Outdoors Solid category — UK brands perform well — cycling outdoor activities and fitness strong Massive category — hunting and firearms accessories present that are absent from UK market
Home and Garden Strong UK category — garden tools seasonal products and home organisation popular Very large — pool and patio products more prominent than in UK due to climate differences
Toys and Games Seasonal — Christmas peak dominant — UK specific brands and licensed products Larger year-round volume — US-specific licensed brands and exclusive product lines

Sourcing — UK Wholesale vs US Wholesale

The wholesale sourcing landscape is significantly different between the UK and US markets. UK wholesale is characterised by a network of established national distributors and regional wholesalers who stock a wide range of branded goods — many of which are available to any business with a trade account. US wholesale is similarly structured but operates at a much larger scale and many major US brands have tighter distribution controls or sell primarily through major national distributors with minimum order quantities and application processes that can be more demanding than their UK equivalents:

Sourcing Aspect UK Wholesale US Wholesale
Trade account application Typically straightforward — business address and basic business details Often requires US business entity — EIN number — reseller certificate
Minimum order quantities Often flexible — many UK distributors allow low MOQs for new accounts Variable — major distributors may require higher initial orders
Delivery logistics Simple domestic delivery — next-day options widely available from UK distributors Domestic US shipping — UK sellers may need a US prep centre to receive and forward to FBA
Finding supplier contacts Brandhunterz Brands Directory — verified UK wholesale contacts across all major categories Brand websites — US wholesale directories — trade shows such as ASD Las Vegas

FBA Infrastructure — UK and US Fulfilment Networks

Both Amazon UK and Amazon US operate extensive FBA fulfilment networks — but the scale and geographic distribution differ significantly. Amazon US has fulfilment centres in virtually every major US state enabling coast-to-coast delivery. Amazon UK operates a national fulfilment network covering England Scotland and Wales with major centres in the Midlands and South East of England. For most UK wholesale sellers sending stock to FBA this means delivery to a Midlands or Home Counties fulfilment centre — typically a straightforward domestic logistics operation. For UK sellers sending stock to Amazon US there is the additional consideration of international shipping — either shipping stock directly from the UK to a US FBA centre or using a US-based prep centre to receive inspect and forward stock to Amazon.

Research Tools — Which Work Best for UK vs US

The major FBA research tools support both Amazon UK and Amazon US — but their data depth and accuracy can vary between marketplaces. Here is how the most important tools compare across both:

Tool Amazon UK Support Amazon US Support
Keepa Excellent — full price and rank history for amazon.co.uk Excellent — full price and rank history for amazon.com
Helium 10 Good — keyword and competitive data for UK marketplace Excellent — deepest data set for US marketplace
AMZScout Good — FBA fee calculator and product research for UK Excellent — comprehensive data for US marketplace
SmartScout Growing — brand and subcategory analysis for UK Strong — brand discovery and wholesale sourcing intelligence for US

Which Marketplace Should You Start With

For UK-based sellers the answer is almost always Amazon UK first. The advantages of starting on Amazon UK are substantial — you can source from domestic UK wholesale suppliers with straightforward trade accounts pay in pounds receive payment in pounds deal with a single national VAT system and operate within a lower-competition environment where establishing Buy Box presence is more achievable for a new seller. Once you have built a profitable and consistent operation on Amazon UK with proven products and reliable wholesale supplier relationships Amazon US becomes a natural and logical expansion — giving you access to a significantly larger customer base for the same products and processes you have already validated.

Amazon UK FBA Wholesale Seller at Desk with Comparison Chart Amazon UK vs Amazon US on Laptop Screen Showing Market Size Fees Tax Structure and Competition Side by Side with UK Flag and US Flag Icons

Conclusion — Same Platform Different Businesses

Amazon UK and Amazon US share the same technology the same FBA infrastructure and the same core selling mechanics — but they are different businesses that require different approaches to sourcing tax compliance and competitive strategy. UK sellers have a genuine advantage in starting on Amazon UK where domestic wholesale sourcing is straightforward competition is lower and the VAT system — while requiring compliance attention — is simpler and more favourable than the US sales tax landscape. Master your Amazon UK operation first then expand to Amazon US with the product knowledge supplier relationships and FBA experience that will give you a genuine competitive edge in the larger marketplace.

Start your Amazon UK wholesale journey with our Brands Directory. Research every product with Keepa. Calculate every margin with AMZScout.

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About the Author

This article is written by the team at Brandhunterz Ltd — a UK registered Amazon FBA wholesale sourcing company (Company No: 15342697) registered in England and Wales since 2023. Visit brandhunterz.com to learn more.

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