A practical comparison for UK sellers — fees, fulfilment, buyer intent, sourcing strategies, and when to pick which marketplace. Includes examples and calculators to test your margins.
Quick summary — which platform suits you?
Marketplace overview (UK context)
Amazon UK is structured, conversion-focused, and optimised for repeat purchases. It favours sellers who can provide consistent stock, fast fulfilment (FBA), and competitive pricing.
eBay UK is more flexible — great for used items, limited edition goods, and sellers who want control over listings (buy-it-now and auction). eBay buyers often accept slightly longer delivery for unique finds or lower prices.
Comparison table — snapshot
|
Future UK |
Amazon |
eBay UK |
|---|---|---|
|
Typical buyer intent |
High — shoppers want to buy, fast conversions |
Mixed — bargain hunters, collectors, research buyers |
|
Fee structure |
Referral % + FBA fees + VAT on fees |
Final value fee % + fixed order fee + VAT on fees |
|
Fulfilment options |
FBA, FBM |
Seller ships (most), Managed Delivery integrations |
|
Best for |
Scalable retail brands, high-volume SKUs |
Resellers, vintage, one-offs, testing products |
|
Ease of scaling |
High (with FBA & tools) |
Moderate (requires manual listing or third-party tooling) |
Fees — worked examples (UK)
Example 1 — Amazon (retail SKU)
- Sale price: £30
- Referral fee (15% typical): £4.50
- FBA fulfilment fee (example): £3.20
- VAT on fees (20%): (4.50 + 3.20) × 20% = £1.54
- Total fees: £9.24
Example 2 — eBay (same product)
- Sale price: £30
- Final value fee (12.8% typical): £3.84
- Fixed order fee: £0.30
- VAT on fees (20%): (3.84 + 0.30) × 20% = £0.83
- Total fees: £4.97
Outcome: eBay fees in this rough example are lower — but remember Amazon’s higher fees may be offset by higher conversion rates, Prime visibility, and more repeat buyers. Always test your real numbers.
Which is more profitable — practical decision flow
- Is the product unique/used/collectable? → Prefer eBay (auctions/niche audience).
- Is the product repeatable, with a predictable margin and a reliable supply? → Consider Amazon (FBA) for scale.
- Is fast delivery and Prime visibility crucial? → Amazon (FBA) has the edge.
- Do you want control over listing details and promotions? → eBay gives more flexibility.
Real decision-making uses numbers — plug your price, costs and shipping into the calculators above to see which channel yields better net profit and margin for each SKU
Sourcing strategies & supplier recommendations
Where you source affects the margin more than which marketplace you choose. Common options:
Tip: Always order samples, check shipping times to the UK, calculate landed cost (product + shipping + customs), and add a safety margin to your pricing
Fulfilment & operations
Amazon FBA: Pros — Prime exposure, fast delivery, outsourced warehousing. Cons: storage fees, more complex return rules, and higher fixed fees.
Seller-fulfilled (FBM) or eBay seller-fulfilled: Pros — full control, lower platform fees, suitable for handcrafted or bespoke items. Cons: You handle shipping and returns; scaling requires robust fulfilment partners.
- Order volumes >100/week, and you don’t want in-house shipping.
- If you sell across multiple channels and need a centralised inventory.
- When international expansion requires local returns handling.
Listing & marketing tactics that work on each platform
Amazon
- Optimise product title + backend keywords + bullet points.
- Use high-quality product images and A+ content if available.
- Run Sponsored Product ads for visibility; use Lightning Deals for spikes.
eBay
- Use clear titles with brand + model + condition + size.
- Strong photos (show flaws) and precise item specifics — they improve search placement.
- Consider auctions to test price sensitivity for rarer items.
A/B testing and KPI tracking
Measure conversion rate, CPC (if using ads), return rate and lifetime value (LTV). Small improvements to product pages or listing photos often deliver better ROI than chasing new channels.
Tip: Set up a simple tracking sheet to compare SKU performance across marketplaces and review weekly.
Final recommendations — short checklist
- Run the exact numbers for each SKU using the calculators: eBay calculator · Amazon calculator.
- Test a small batch on each platform before scaling.
- If you want stability & scale, invest in Amazon FBA for winning buy-box sales; for unique/one-off inventory, prioritise eBay.
- Monitor shipping costs and VAT — these change and significantly affect margins.