Nowadays, most sellers do choose to sell online. While that choice might be easy, choosing the best ecommerce platform for your business can prove far more challenging. In this blog, we will explain and compare all the leading ecommerce platforms and sales channels across 3 categories:

• Third Party Marketplaces (Amazon, Etsy and Ebay)
• Your Own Website (Shopify and Woocommerce), and
• Social Media Platforms (Facebook, Instagram and TikTok)

For every business owner, the best ecommerce platforms are going to vary depending on what products you’re selling, who your target customers are and your business model. If you’re unsure of which model is best for you, see our Comprehensive Guide on the Best Ecommerce Business Models in 2024.‍

When choosing your platform though, you should consider factors such as:

• The nature and positioning of the platform
• Selling fees
• Platform policies
• Selling support
• Payment processing options
• Order fulfillment options
• The level of store customization
• The level of control you want for your online store
• Whether or not your “ideal customers” spend time on the platform
• The alignment between the platform and your branding and marketing strategy
• Expansion options

With that in mind, let's begin.

Amazon

Amazon is the largest B2C (business-to-consumer) ecommerce marketplace in the world.

Why should I sell on Amazon?

This is the best ecommerce platform for small business owners aiming to sell globally or who seek the most “hands off” approach. You can sell almost any product through this platform. Many sellers choose Amazon because of how quickly you can reach a wide audience.

How to sell on Amazon

Sign up to sell on Amazon here. Pay careful attention during registration with this platform. If you're signing up as a business, you need a Professional Selling Account and to sign up in your business's name. Once complete, you can navigate Sellelr Central, begin adding products and start selling. You can learn more about the Amazon signup process here. Selling on Amazon will require a lot of optimization, you can learn how we've helped dozens of sellers on our Amazon Accountants page.

Amazon selling fees UK

Seller account fees

You can sell for free on Amazon using an Individual seller account. With this account type you will have fewer features in Seller Central and you pay a higher closing fee of £0.90 (£0.75+VAT) for each item you sell.

Alternatively, you can opt for a Professional seller account where you do not pay a per-item closing fee and gain access to many more features in Seller Central. This costs £30 (£25+VAT) per month.

It makes sense then that if you start out with an Individual seller account, at the point when you are selling 33+ units per month (33 x £0.90 = £29.70), you should upgrade to a Professional seller account. Otherwise your feature-limited Individual seller account starts to become more expensive than a Professional account.

Amazon referral fees

When you sell a product on Amazon, Amazon deducts the applicable referral fee. This happens each time you make a sale and can be charged in 2 ways:

• If you are on an Individual seller account, then this is a Per-item minimum referral fee.
• If you are on a Professional seller account (which is the preference of most sellers), then this is a Referral fee percentage.

We will focus on the referral fee you would pay with a Professional seller account here. This is a percentage calculated on the total sales price the buyer pays, excluding any taxes. If you run a discount, it’s charged based on the discounted price. It’s always based on what the buyer pays.The total sales price is the total amount paid by the buyer, including:

• The item price
• Any delivery charges
• Any gift wrapping charges

You can see the full list of Amazon referral fees here but they vary by product category as shown below:

To establish your referral fee, you need:

1. The final price to the customer 
2. The referral fee based on your product’s category

For our example product, we sell it for £20 in Sports and Outdoors which has a 15.3% referral fee.

Simply multiply the price paid by the customer by the percentage for your referral fee:
£20 x 15.3% = £3.06

You will pay an Amazon referral fee of £3.06 each time you sell this product.

Amazon fees For FBA fulfillment

When selling on Amazon, you can choose to fulfill orders yourself or by using Fulfillment by Amazon (FBA). If you choose the latter, you will pay Amazon for this service. How much you pay them depends on a few factors.

Your product’s size will determine what’s known as it’s Amazon’s FBA (fulfillment by Amazon) size tier. Each size tier has an associated FBA fulfillment fee. Generally, the larger or heavier a product, the higher the fulfillment fee.

The fulfillment fee, as the name suggests, is charged each time the item is fulfilled. So, in general, each time you make a sale, that FBA fee will be deducted from your sell price.

As above, there are 10 tiers a product could fall into in Europe. You want to find the accurate size tier based on your product. For a product to fit a tier it needs to be below that size tier’s maximum:

• Size (dimensions)
• Weight

This is our ecxample product that we will use as a baseline to compare all platforms:

Based on the above factors, our example product will fit into the size tier: Extra-large envelope.

The applicable FBA fulfillment fee for local fulfillment in the UK is £2.95.

You can download the full FBA fee rate card here.

FBA storage fees

Amazon charges monthly inventory storage fees for the space your inventory occupies in fulfillment centers. Monthly storage fees are calculated on your daily average volume in cubic feet. All measurements are based on the size of a unit that is properly packaged and ready to ship.

To calculate your storage fee, you need:

1. Nature of the product/s
2. Month applicable
3. Rate per cubic foot
4. Average daily units (“average quantity on hand” in report)
5. Product volume (cubic feet)

In our example, these aspects are:

1. All other categories (standard size)
2. March
3. £0.78
4. 200 (once selling, you can gain this from the Monthly Inventory Storage Report generator)
5. 0.06978 cubic feet

You can work out the cubic feet measurement as follows:

Our product measures 8.7” X 6.3” X 2.2”. Multiply out the dimensions:‍

‍8.7 X 6.3 X 2.2 = 120.58 cubic inches‍

‍Turn the cubic inch measurement into cubic feet by dividing the answer by 1,728:‍

‍120.58 / 1,728 = 0.06978 cubic feet
‍

Find your total storage volume in cubic feet by multiplying the product volume by the average number of daily units:

200 X 0.06978 = 13.956 cubic feet

Finally, find your total storage fee for the month by multiplying the total volume by the storage fee per cubic foot:

13.956 cubic feet X £0.78 = £10.89

Therefore, having on average 200 units of a non-dangerous product of this size within the FBA fulfillment centers between Jan and Sep will have a total monthly storage fee of about £10.89.

Dividing that by the average number of units (£10.89/200 = £0.05) means it costs £0.05 per month to store each unit.

Selling on Amazon fees example

‍Unlike many platforms, there is no listing fee on Amazon. You do however need to pay a monthly subscription of £30 if you opt for a Professional seller account.

If we sell the example product on Amazon and use the optional FBA service to fulfill all of the orders, it breaks down as follows:

Sell price: £20

Listing fee: 0
Amazon referral fee: £3.06
FBA fulfillment fee: £2.95
Estimate storage fee per unit per month: £0.05

Total fees: £6.06

In this case, excluding FBA, Amazon’s fees (£3.06) amount to 15.3% of the total paid by the customer.

Including FBA fulfillment (a turnkey system) the fees (£6.06) amount to 30.3% of the sell price.

You can estimate all the Amazon fees for any product using the Amazon Revenue Calculator on Seller Central.

If you want to know the full startup costs for any of these business models, see our Ultimate Budget Guide: How Much Does It Cost to Start an Ecommerce Business in the UK.

Pros & Cons of Selling on Amazon

Pros

1. Enormous customer base
   
   Amazon.co.uk specifically caters to the UK market and is the 4th largest Amazon marketplace in the world. It is the undisputed leader in the UK ecommerce space. As an Amazon seller, you will instantly have access to a massive customer base, which will help drive sales.
   ‍
2. Buyer trust
   
   Amazon has been around a long time and is trusted by customers. With their simple returns policies, shoppers will have confidence buying your products on the platform, leading to more sales.
   ‍
3. Fulfillment options
   
   Where Amazon really shines is in the fulfillment options they provide to sellers. If this is what you’re after, then Amazon is likely the best ecommerce platform for you. There are two main options, FBM (Fulfillment by Merchants) and FBA (Fulfillment by Amazon). FBM is the traditional method whereby you fulfill your Amazon orders to customers using your own solutions. FBA allows you to send inventory to fulfillment centers and Amazon automatically fulfills your orders to customers. FBA is competitively priced, will save you time and provides reliable, fast shipping for your customers.
   ‍
4. Free, fast shipping with Prime
   
   With 100% of the British public having heard of Amazon Prime, this is a membership you will want to leverage. By listing your products as Prime-eligible, you will attract a vast pool of Prime members who are more likely to buy from you due to the free, fast shipping that Prime provides. While there is a limited Seller-Fulfilled Prime program for those doing FBM, products fulfilled using FBA automatically receive the Prime badge.
   ‍
5. Global reach and expansion options
   
   While you may start selling on Amazon.co.uk, Amazon provides various expansion options. You can choose to make your products available in other Amazon marketplaces around the world through Amazon's global network. This expands your potential customer base far beyond UK borders.
   ‍
6. Advertising tools
   
   Amazon offers multiple advertising tools. The most well-known is Amazon PPC (Pay-Per-Click) Advertising with Sponsored Products. Running these ads will help you promote your products by boosting their visibility to targeted customers.
   ‍
7. Customer service
   
   One of the biggest advantages of using FBA is that Amazon will also handle all customer service and product returns on your behalf. This saves you time and simplifies these processes.
   ‍
8. Seller tools and analytics
   
   Amazon provides sellers with various tools that will help you estimate fees, gain insight into sales performance, manage inventory and set pricing strategies. The Amazon Revenue Calculator is one such tool.
   ‍
9. Simple fee structure
   
   While Amazon fees are not the cheapest, they are simple. There are no strange transaction/processing fees you need to worry about which allows you to easily assess opportunities and forecast profitability.

Cons

1. High competition
   
   Although Amazon is one of the biggest ecommerce platforms, it's also one of the most competitive, this can make it hard for new sellers to get their products noticed.
   ‍
2. Expensive paid advertising
   
   With a large number of sellers using Amazon’s Sponsored Products (PPC) ads, the cost per click (CPC) of these has risen in recent years. This can make it challenging to advertise profitably on Amazon.
   ‍
3. Referral fees
   
   Amazon’s referral fees are on the higher side. These fees vary by category but are generally 15% of your selling price. Careful attention to numbers is needed as fees can significantly impact profit margins.
   ‍
4. Platform dependency
   
   When selling on Amazon, Amazon maintains ownership of your listings and retains the right to change policies at any time. System limitations and changes to policies can impact your business.
   ‍
5. Strict policies
   
   Amazon has very strict guidelines that you must adhere to. Failure to do so can result in suppression of your listings, suspension, or even account termination.
   ‍
6. Lower brand building opportunities
   
   Selling on Amazon gives you far less flexibility in terms of displaying your brand’s personality and building a connection between your brand and customers when compared to selling on your own branded website.
   ‍
7. Counterfeits and hijackers
   
   Some sellers do face challenges with counterfeit products and unauthorized sellers listing offers on their product pages. This can harm your brand’s reputation and impact sales.
   ‍
8. Limited customer data
   
   Amazon protects customer data. This means, while you can sell to their customers, you won’t be able to collect customer data. This gives you less follow-up and upselling opportunities with customers as you might develop when selling on your own website.

Amazon vs Shopify

These are 2 of the leading ecommerce platforms in the UK. Shopify is better for brands wanting absolute control over branding, customer experience and customer data. Amazon is better for sellers looking to leverage a large, existing user base without the need to drive external traffic or manage their own website. 

Looking at the fees, here is how they stack up using the same product example:

Transaction fees (Excl. the Royal Mail or FBA shipping fee):

Amazon: £3.06 - 15.3% of the total selling price

Shopify: £0.65 - 3.25% of the total selling price (Basic Plan)

Transaction fees (Including the Royal Mail or FBA shipping fee):

Amazon: £6.06 - 30.3% of the total selling price

Shopify: £4.04 - 20.20% of the total selling price

Monthly subscription fees:

Amazon: £30 (Professional Selling Account)

Shopify: £19.00 (Shopify Basic) + £1 to £2 (Domain)

In this case, per transaction, Amazon will cost (2.02) 10.1% more than Shopify. With an Amazon Professional Selling Account or the Basic Shopify Plan, Amazon will cost £9 - £10 more than Shopify per month. In this example, Shopify appears to be the cheaper platform across the board. There are 2 aspects to keep in mind though:

• The major cost difference lies in Amazon’s referral fee (+-15%). They charge this because you are leveraging their large customer base (that already trusts the platform) in order to make the sale. While Shopify doesn’t charge a referral fee, you will need to drive customers to your own website (and establish trust with them) to make the sale. This often comes at a significant cost.
• In this example, we have accounted for product storage fees with Amazon FBA, while we have not accounted for the storage cost (if any) of the products you are selling via Shopify.

Although we are focusing on the UK in this article, most of these platforms are available in multiple countries. If you’re grappling with where in the world to sell, see our Complete Breakdown of The Best Countries for Your Ecommerce Business.

Etsy

Etsy is the leading ecommerce platform for creative, hand-made and artisanal products.

Why should I sell on Etsy?

Etsy can be a good place to sell your products online, especially if your products align with the platform's unique personality and target market. This is the best ecommerce platform for small business owners who design and develop products for their customers. Known for its artisanal products, it’s the perfect place to showcase and sell your unique, vintage, craft, or other creative items.

How to sell on Etsy

Sign up to sell on Etsy here. Then open your Etsy store and verify your identity. You will need to set your billing and payment preferences. Lastly, you can upload products and begin selling. You can follow this process to set up your Etsy selling account.

Etsy selling fees UK

Etsy Listing Fees UK

Etsy charges a £0.15 listing fee to sellers for each listing.

Think of this as an "advertising fee" or “referral fee” they charge for showing your products to their customer base and, in turn, helping you make the sale.

‍If you sell one of your products, then you’ll pay Etsy a £0.16 listing fee.

‍The listing fee is renewed each time you sell the product, so if you sell 4 of your products you'll pay £0.64 (£4 x 0.16).

Etsy Transaction Fees

‍When you sell a product on Etsy, they charge you 6.5% of the amount collected. It’s important to note that this is based on the total charged to the customer, including shipping or gift wrapping.

‍If the total charged to the customer is £20, then you’ll pay Etsy £1.30 (£20 X 6.5%).

Payment Processing Fees

‍If your sale was processed through Etsy's Direct Checkout, you will pay Etsy a variable payment processing fee of 4% of the total transaction amount.

In addition, you will always pay a standard £0.20 payment processing fee.

‍If your customer pays £20 when purchasing one of your products, then you’ll pay Etsy a variable payment processing fee of £0.80 (£20 X 4%). ‍

‍You will also pay the standard £0.20 payment processing fee. Your total payment processing fee will be £1 (£0.80 + £0.20).

Offsite Ads Fees‍

Etsy pays to advertise your items across the web. These are called Offsite Ads. You will only pay this Offsite Ad Fee when you make a sale from one of those ads. The fee is calculated as 15% of the transaction.

‍If your customer pays £20 when purchasing one of your products, then you’ll pay Etsy an Offsite Ad Fee of £3 (£20 X 15%).

Selling on Etsy fees example‍

You sell one of your products on Etsy (not via an Offsite Ad) which is processed by Etsy’s Direct Checkout and the customer pays £20 in total. You will pay the following fees:

Listing Fee: £0.16
Transaction Fee: £1.30
Variable Payment Processing Fee: £0.80
Standard Payment Processing Fee: £0.20

Shipping fee: £3.39

Total fees: £5.85

Etsy selling fees comparison

In this case, excluding the Royal Mail shipping fee, Etsy’s fees of £2.46 amount to 12.3% of the total selling price. This is 3% less than Amazon’s 15.3% (£3.06).

Including the Royal Mail shipping fee (£3.39), Etsy's total fees (£5.85) amount to 29.25% of the sell price. This is 1.05% less than Amazon's total fees of 30.3% (£6.06) which uses Fulfillment by Amazon.

You can learn more about Etsy selling fees here.

If number crunching isn't your thing and you’re looking for an Etsy accountant who understands your ecom business, get in touch with us today.

Pros & Cons of selling on Etsy

Pros

1. Niche-centric
   
   Etsy has built a strong reputation as the dominant online marketplace within the high-end handmade, vintage, and unique items niche. By extension, it is visited frequently by customers who love these types of products. If your products fit this niche, you'll likely find a very targeted audience on Etsy.
   ‍
2. A large, engaged community
   
   As of the latest figure in 2023, Etsy has over 96.2 million active buyers. These are customers who specifically seek out one-of-a-kind products. It follows that these buyers are more likely to appreciate the extra time and effort you spend developing your unique creations.
   ‍
3. Buyer and seller trust
   
   Etsy has established one of the most important marketplace facets; trust among buyers and sellers. Due to Etsy’s reputation for authenticity, shoppers feel confident making purchases on the platform. Etsy’s policies protect both buyers and sellers, creating a secure environment for commerce.
   ‍
4. Seller-friendly tools
   
   Etsy provides sellers with easy-to-use tools for creating their product listings, managing customer orders and handling payments. The platform has been designed to make it easy for creatives and small business owners to set up their own online shop. Etsy also offers a mobile app that you can use to conveniently manage your shop and listings.
   ‍
5. Customization
   
   While Etsy provides a fixed platform, you are given freedom to show off your brand's personality by customizing your shop's appearance and branding.
   ‍
6. International reach
   
   Etsy attracts buyers from all around the world. Niche-focused customers love buying products from all 4 corners of the globe. This gives you the potential to reach an international customer base, regardless of your location.
   ‍
7. SEO halo effect
   
   Since Etsy's platform is already optimized for search engines, you don’t need to build and rank your own website to get in front of customers. Your product listings can piggyback of Etsy’s existing SEO, making it easier for potential customers to discover your products through Google and many other search engines.
   ‍
8. Marketing and Ppromotion flexibility
   
   Etsy also offers marketing and promotional tools. You can use these to further increase the visibility of your products on the platform. These include paid advertising features and social media integrations.
   ‍
9. Community/Seller support
   
   Etsy’s seller resources, Etsy forums and Etsy seller handbook will help you navigate the platform and enhance your selling skills. You can connect with other Etsy sellers via the Etsy seller community and learn from their experiences.
   ‍
10. Reviews and ratings
    
    Buyers can leave you feedback via Etsy's review and rating system. This provides you an opportunity to build trust and credibility for your brand by consistently providing great products and service.

Cons

1. Competition
   
   With millions of sellers on Etsy, competition can be fierce in some niches, making it harder for new sellers to stand out.
   ‍
2. Niche-centricity
   
   While Etsy has a large customer base, customers are looking for handmade, artisan, or unique types of products. If you’re selling something more generic, it’s likely not the best platform for your products.
   ‍
3. Order fulfillment
   
   Etsy does not have its own warehouses and fulfillment network. This means you will need to pick, pack and ship orders to customers using your choice of solutions.
   ‍
4. Transaction fees
   
   While standard fees are low, transaction fees can eat into profits and make the fee structure relatively complex.
   ‍
5. Dependency/Limited control
   
   As with many online marketplaces, you will have limited control over platform policies and changes, which can impact your business. For example, any changes to Etsy's search algorithms can impact your visibility and sales.
   ‍
6. Limited brand building
   
   The ability to customize aspects and build your own customer base is diluted when selling through Etsy. This makes it harder to build a strong brand identity when compared to selling via your own website.
   ‍
7. Customer service
   
   You will be responsible for handling customer inquiries, problems, and returns, which can prove time-consuming.

eBay

eBay is one of the biggest ecommerce platforms. It connects buyers and sellers but, unlike Amazon, it doesn't sell any items itself. Instead, sellers can list items for sale, and buyers can bid on them in auctions or use the "buy it now" button to purchase the item instantly.

Why should I sell on eBay?

Although you’ve likely heard about eBay and have an idea of its prominence, did you know that the Brits use eBay the most out of any country (eBay marketplace) in the world. Per capita, the Brits also buy more eBay items per month than any other country in the world. This is also a welcome home to one-off, collectible, antique and niche products. You can sell both new and used items. You list your products for sale on eBay and fulfill orders to your customers using shipping methods of your choice. This is a well-established platform in the UK, allowing you to reach a wide audience quickly.

How to sell on eBay

You can sign up to sell on eBay as an individual with a free account or you can sign up to sell on eBay as a business, at a cost, with a proper eBay shop. You will need your bank account and personal/business information. Then you can set your postage, return and payment policies, list your items and begin selling. You can also learn how to sell on eBay in more detail. See how we have helped other Ebay entrepreneurs on our Accountants for eBay page.

Selling on eBay fees UK

Ebay Listing fees UK

eBay allows you to create 1,000 listings on the site for free each month.

In the case of classified listings, the listing fees are as follows:

Ebay Transaction fees

When your product sells to a buyer, eBay charges the following fees:

• Final value fee - Calculated as 12.8% of the total amount of the sale. This includes the item’s price, all postage, and any applicable taxes. Plus a fixed charge of 30p per order. For sales in excess of £5,000 for a single item, you will pay 3% only on the portion of the price above £5,000.

• International fees - If your product sells to an international buyer (non-UK), eBay charges the following fees based on where the buyer is located.

eBay Shop fees

Optionally, you can subscribe to an eBay Shop. This allows you to bring together your listings in one, branded location. This also gives you access to additional business management tools. There are 3 levels - Basic, Featured and Anchor as below. You can find out more about these here.

Other fees

• Dispute fee - When you are found responsible for a chargeback or something similar, eBay charges a £16.80 dispute fee for each dispute.
• ‍Currency Conversion Fee - If you have a UK registered address, when a transaction is completed by a buyer in a currency other than GBP (£), eBay applies and retains a seller currency conversion charge of 2.5%.
• ‍Listing upgrade fees - Optionally, you may choose to upgrade your listings at a price to include various features. You can learn more about this here.

Selling on eBay fees example

Unlike many platforms, in the majority of cases, there is no listing fee on eBay. To have a professional appearance on the platform, most businesses would pay to have at least the Basic eBay Shop plan at a monthly subscription of £27.

If we sell the example product on eBay and purchase shipping for the order via eBay (using Royal Mail) to fulfill all of the orders, it breaks down as follows:

Sell price: £20
Listing fee: 0
Final Value Fee (£20 x 12.8%): £2.56
Regulatory operating fee (£20 x 0.35%): £0.07
Final value per order fee(£20 x 0.35%): £0.30
Shipping fee: £3.39 *

Total fees: £6.32

eBay selling fees comparison

In this case, excluding the Royal Mail shipping fee, Ebay’s fees of £2.93 amount to 14.65% of the total selling price. This is 2.35% more than Etsy’s 12.3% (£2.46) but 0.65% less than Amazon’s 15.3% (£3.06).

Including the Royal Mail shipping fee (£3.39), the total fees (£6.32) amount to 31.6% of the sell price, which is 1.3% more than the Amazon equivalent (with FBA) at 30.3%.

So far, Etsy is the cheapest platform in terms of fees, followed closely by Amazon and Ebay which are very closely matched (at this product’s specifications). Considering the time advantages of FBA, one might place Ebay firmly in last place here.

Pros & Cons of selling on Ebay

Pros

1. Vast customer base
   
   With over 19 million Brits visiting the site every month, eBay could give you access to a large and hungry pool of UK buyers.
   ‍
2. Product variety
   
   You can sell practically anything on eBay, including new and used items. It’s also a fitting place to sell collectibles, antiques and other niche products. If you sell one-offs, handmade items, or highly unique products, this may be the marketplace for you.
   ‍
3. Fixed-price and auction options
   
   eBay lets you list items at a fixed price or through auction style listings where buyers can compete by bidding on your listing. This gives you added flexibility on how you wish to sell your products.
   ‍
4. Worldwide reach
   
   Although you may be selling on eBay UK, international buyers can also view, bid on or purchase your products, further expanding your customer base. You can select whether or not to include international buyers on your listings.
   ‍
5. Customer feedback
   
   The feedback system allows both, buyers and sellers, to leave reviews and ratings. This has a high conversion rate compared to other platforms, allowing you to quite quickly build up positive feedback and elevate your credibility on the site to attract more customers.
   ‍
6. PayPal payment options
   
   Since PayPal is owned by eBay, there are obvious motives for the strong integration of PayPal for payment processing on eBay. Nonetheless, this provides a secure and familiar payment option for your buyers.
   ‍
7. Mobile-friendly
   
   A vast array of customers shop via mobile phones. eBay has both a mobile app and a mobile-optimized website. This makes it easy for your customers to shop with you and for you to manage your listings while on the go.
   ‍
8. Local & international shipping options
   
   eBay is integrated with various shipping carriers which makes it eBay for you to manage shipments of orders to customers. After you confirm a buyer’s order, you can choose from various local and international shipping options.
   ‍
9. Seller community
   
   eBay has a very active seller community. This is where you can ask questions, search for answers and connect with other sellers.

Cons

1. Seller tools
   
   eBay Seller Hub provides you with a range of tools aimed at helping you manage your listings and sales. Once you get comfortable with it, this does allow you to track everything and perform the fundamental tasks however we’ve seen far better dashboards on other marketplaces.
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2. Fund holds
   
   eBay’s policy doesn’t always favour a seller’s cash flow. If your product is deemed “high risk” or costs $1,000 (£750) or more, eBay will often hold the buyer’s funds for 30 days to ensure the buyer doesn’t have a problem with the order. This remains the case, even if the buyer approves delivery.
   ‍
3. Customization
   
   Although you can customize your eBay store's appearance, eBay falls short of other marketplaces in terms of how well you can showcase your brand's personality.
   ‍
4. No in-house storage and fulfillment
   
   Unlike platforms like Amazon, eBay does not offer any in-house storage and order fulfillment services. This means, although you can book the shipping on eBay, you are still required to handle fulfillment to your customers.
   ‍
5. Relatively high fees
   
   Although eBay appears to be a “cheaper” option, the fees you pay are relatively high when you consider the overall quality and feel of the eBay selling experience compared to similarly priced platforms that offer more to sellers.

eBay vs Shopify

These are 2 of the biggest ecommerce platforms. Shopify is better suited to brands seeking full control over their stores. You can sell almost anything on Ebay but this platform would be the better choice for those who sell one-offs or wish to use online auction features. 

Looking at the fees, here is how they stack up using the same product example:

Transaction fees (Excl. the Royal Mail shipping fee):

Ebay: £2.93 - 14.65% of the total selling price

Shopify: £0.65 - 3.25% of the total selling price (Basic Plan)

Transaction fees (Including the Royal Mail shipping fee):

Ebay: £6.32 - 31.6% of the sell price

Shopify: £4.04 - 20.20% of the total selling price

Monthly subscription fees:

Ebay: £27 (Basic eBay Shop)

Shopify: £19.00 (Shopify Basic) + £1 to £2 (Domain)

In this case, per transaction, Ebay will cost (2.28) 11.4% more than Shopify. With a Basic Ebay Shop or the Basic Shopify Plan, Ebay will cost £5-£6 more than Shopify per month. In this example, Shopify is the cheaper platform across the board.

Facebook

Facebook needs no introduction. This platform has an enormous reach with multiple ecommerce options for sellers.

How to sell on Facebook

You can sell your own products on this platform via 2 methods:

• Facebook Shops: This allows you to set up a shop where Facebookcustomers can browse and purchase your products directly. 
  
  You would need to create a  Facebook Business Page and then use a feature called "Facebook Shop" to create a storefront directly on your Facebook Page. Then, you can use various Facebook features and tools to reach your target audience. Learn more on how to set up a Facebook Shop here.
  ‍‍
• Facebook Marketplace: This is ideal for selling items locally or to a broader audience and is often used to sell second-hand items or handmade goods.
  
  You would need to access Marketplace by going to your Facebook app or the website and clicking the Marketplace icon (looks like a shopfront). You can then click the “Create New Listing” button to create a product listing. You can find out more about Facebook Marketplace, the rules and best practices here.

Facebook selling fees UK

When selling on Facebook, particularly through Facebook Marketplace and Facebook Shops, there are certain fees involved. Here's a breakdown of the fees:

Facebook Shops Fees UK

• Selling Fee: 5% on each transaction, including the cost of the item, shipping, and any taxes.
• Minimum Fee: £0.30 instead of the 5% fee (If your shipment is £7.00 or less)

Facebook Marketplace Fees UK

• Listing Fee: £0 - There is no fee to list items on Facebook Marketplace.
• Selling Fee: 5% on each transaction, including the cost of the item, shipping, and any taxes.
• Minimum Fee: £0.30 instead of the 5% fee (If your shipment is £7.00 or less)

Facebook selling fees example

Using our example product:

Sell price: £20
Listing fee: 0
Shipping fee: £3.39 *
Selling Fee (£23.39  x 5%): £1.17‍

Total fees: £4.56

Facebook selling fees comparison

In this case, excluding the Royal Mail shipping fee, Facebook’s fees of £1.17 amount to 5.85% of the total selling price. This is 6.45% less than Etsy’s 12.3% (£2.46), 8.8% less than Ebay’s 14.65% (£2.93), and 9.45% less than Amazon’s 15.3% (£3.06)

Including the Royal Mail shipping fee (£3.39), the total fees (£4.56) amount to 22.8% of the sell price, which is 8.8% less than Ebay’s 31.6% (£6.32) and 7.5% less than the Amazon equivalent (with FBA) at 30.3%.

Therefore, so far, Facebook is the cheapest platform, followed by Etsy, then Amazon and Ebay which are very closely matched (at this product’s specifications). Overall, Facebook is the second cheapest ecommerce platform available to UK businesses.

Pros & Cons of selling on Facebook

Pros

1. Massive Reach
   
   Facebook has billions of users worldwide, meaning you can potentially reach a large number of your ideal customers.
   ‍
2. Powerful Marketing
   
   Facebook provides you with advertising tools to create highly targeted ad campaigns, allowing you to target customers based on interests, behaviors or even how they have previously interacted with your business.
   ‍
3. Integrated with Instagram
   
   Facebook Shops and Instagram Shopping work in tandem to allow you to create a seamless shopping experience for customers on both. Customers can purchase your products without leaving the Facebook or Instagram platforms. If you also have an Instagram business account, you can cross-promote products on both platforms.
   ‍
4. Customer Support via Messenger
   
   Facebook Messenger is a convenient way for you to provide customer support and answer any inquiries in real-time.
   ‍
5. Customer Reviews and Ratings
   
   Facebook allows your customers to leave reviews and ratings for your business. This is useful in building trust and credibility around your brand..
   ‍
6. Mobile-Friendly
   
   Facebook provides a mobile-friendly solution for shopping, meaning you can reach customers on their smartphones, where they tend to make quick purchase decisions.
   ‍
7. Business Insights
   
   You can track the performance of specific posts, ads or products using Facebook’s insights and analytics tools. This will provide you with data on customer behavior so you can adjust your marketing plans accordingly.
   ‍
8. Social Engagement & Customer Retention
   
   Facebook users are used to engaging with content on the site, meaning you can build a community of loyal fans while interacting with them through your posts, comments, and via messages. By staying engaged with customers, you can nurture these relationships and encourage repeat business. You can even use Facebook Live to showcase products in real-time, hold live Q&A sessions or announce product launches.

Cons

1. Marketplace Policies
   
   Facebook Shops and Facebook Marketplace policies can change without much notice, since you need to comply with these, the rules may limit how you conduct business or what you can sell.
   ‍
2. Scams
   
   You may encounter fraudulent buyers who attempt to trick you with fake payments or various other tactics. This means you always need to manage transactions through a secure payment method.
   ‍
3. Limited Customer Support
   
   Facebook's customer support for sellers is frequently said to be inadequate. If you encounter problems, getting timely and effective support can be a challenge.
   ‍
4. Limited Privacy
   
   As it’s a social platform, selling on Facebook often means sharing personal information such as your profile or location. Some sellers feel uncomfortable with this, especially when dealing with local buyers through the Facebook Marketplace.
   ‍
5. Payment & Shipping Issues
   
   Unlike other e-commerce platforms, Facebook doesn’t offer integrated payment and shipping solutions globally. This can cause payment security issues and disputes when buyers and sellers have different expectations.
   ‍
6. Limited E-commerce Tools
   
   Unlike major e-commerce platforms, Facebook lacks ecom-focused analytics and sales tools.. This makes it harder for you to manage inventory and optimize listings.
   ‍
7. Potential for Public Negative Feedback
   
   Negative reviews or comments may be publicly visible on your Facebook profile or page, which can be damaging to your reputation. This means you need to spend time addressing complaints and concerns.
   ‍
8. Advertising Costs
   
   To increase your brand’s visibility on Facebook, you'll likely run Facebook ads. The cost of which can add up and there is no guarantee of a return on investment.
   ‍
9. Algorithm Dependence
   
   Facebook works based on an algorithm. If the algorithm changes, the visibility of your listings or posts might drop without warning and impact your sales.

Instagram

This is a powerful, visual platform to promote your brand, especially if your target audience is highly active on social media. Integrated with Facebook, it allows easy cross-promotion across both platforms.

How to sell on Instagram UK

Selling on Instagram in the UK primarily includes redirecting customers to a location, such as your website, where your products are for sale rather than directly selling to them on Instagram. This is because Instagram's Checkout feature is not fully available in the UK yet. That said, in the UK and other supported regions, you can still set up an Instagram Shop and use the Checkout on another website or Checkout with messaging features until the built-in checkout feature is fully available.

Instagram seller fees UK

Here are the current and future fees to consider:

• Direct Selling Fees: £0 - The lack of Instagram Checkout in the UK means Instagram doesn’t charge direct selling fees if you are simply redirecting customers to your website or managing sales via direct messages.
• Future Fees: Once Instagram Checkout becomes available in the UK, the fees will likely mirror those for Facebook Shops/Marketplace:
  • Selling Fee: 5% on each transaction, including the cost of the item, shipping, and any taxes.
  • Minimum Fee: £0.30 instead of the 5% fee (If your shipment is £7.00 or less)

Due to the lack of Instagram Checkout and the fact that using Instagram in the UK primarily involves redirecting your customers rather than directly selling to them on Instagram, it’s not worth comparing the selling fees to other platforms at this stage.

Pros & Cons of selling on Instagram

Pros

1. Visual Platform
   
   Instagram is a visual platform, making it an ideal place to showcase your products via high-quality images and videos. It's particularly suited to brands in the fashion, beauty, food, and lifestyle niches.
   ‍
2. Massive, Mobile User Base
   
   With over 1 billion active users worldwide, Instagram provides you with access to a vast pool of potential buyers. It is also primarily used on mobile devices, giving you access to customers 24/7.
   ‍
3. Engagement & Community Building Features
   
   The platform is full of engagement-friendly features. Comments, likes and direct messages give users multiple ways to engage with your content so you can build a loyal community. You can use Instagram Stories and Reels to create short-form content about your products and include relevant hashtags to increase the discoverability of your brand’s posts.
   ‍
4. Instagram Live
   
   Go live on Instagram to connect with your audience in real-time, host product launches, Q&A sessions, or interactive events to engage with potential customers.

Cons

1. Limited Direct Selling Features in the UK
   
   Currently Instagram’s native Checkout feature isn't fully available in the UK. This means you can only currently use it to direct customers to your website or use DMs to complete sales. This can add friction to the buying process and reduce conversion rates..
   ‍
2. Competition and ad saturation
   
   Instagram is exceptionally popular amongst sellers, so competition can be fierce. Making your brand and products stand out requires a lot of dedication in terms of content creation, and potentially spending on Instagram ads. With a high volume of ads on Instagram, you may find it challenging to capture your ideal customers’ attention.
   ‍
3. Content Demand
   
   Instagram is a competitive and highly visual platform, meaning your success depends on the appeal of your images and videos. Creating this content is time-consuming and may require financial investment in photography, graphic design, or video production.
   ‍
4. Algorithm Challenges
   
   Instagram content is organized by an algorithm. This algorithm prioritizes content that receives high engagement from users. This means it can be difficult for smaller brands to achieve the reach they desire before they have an established following.

TikTok

TikTok is a social media platform that allows you to create and share short-form videos, usually ranging from 15 seconds - 3 minutes in length. It is the leader in the social media space in terms of highly engaging and creative content with users  integrating music, filters and various editing effects to enhance videos. As a TikTok user, the "For You Page" presents an algorithm-driven feed of videos based on your preferences and past interactions.

Why should I sell on TikTok

The platform has staggeringly high engagement rates, making it an ideal place to connect with your potential customers. This is a great choice if you are targeting younger demographics, TikTok has various shopping features you can use to tag and sell your products directly to customers, even while interacting live on the platform.

How to sell on TikTok Shop UK

First, sign up as an TikTok Seller. If you're running a business, choose Corporate Seller. If you aren't operating as a business entity, choose Individual Seller. Next, fill in the details and verify your identity. Laslty, you will create your shop and begin selling. You can learn more about TikTok shop and the signup process here. See how we have helped entrepreneurs on this platform on our Accountants for Tiktok page.

TikTok shop fees UK

Each time you sell a product from your TikTok shop, you can expect a:

• Commission Fee: 5% of the total order (including the product price, shipping costs, and applicable taxes) *
• Payment Processing Fees: 2% to 3% per transaction *

TikTok selling fees example

Using our example product:

Sell price: £20
Commission Fee:  £1 (£20 X 5%)
Payment Processing Fee: £0.50 (£20 X 2.5%)
Shipping fee: £3.39 *

Total fees: £4.89

TikTok selling fees comparison

In this case, excluding the Royal Mail shipping fee, TikTok’s fees of £1.50 amount to 7.5% of the sell price. This is 1.65% more than Facebook’s 5.85% (£1.17), 4.8% less than Etsy’s 12.3% (£2.46), 7.15% less than Ebay’s 14.65% (£2.93), and 7.8% less than Amazon’s 15.3% (£3.06)

Including the Royal Mail shipping fee (£3.39), the total fees (£4.89) amount to 24.45% of the sell price, which is 1.65% more than Facebook’s 22.8% (£4.45), 7.15% less than Ebay’s 31.6% (£6.32) and 5.85% less than the Amazon equivalent (with FBA) at 30.3%.

Therefore, so far, Facebook is the cheapest platform, followed by TikTok, then Etsy, then Amazon and Ebay which are very closely matched (at this product’s specifications). Overall, TikTok works out to be the third cheapest ecommerce platform available to UK sellers.

Pros & Cons of selling on TikTok

Pros

1. TikTok Shop
   
   TikTok has launched TikTok Shop in the UK. This allows you to sell your products directly through the platform, streamlining the shopping experience and making it easy for users to purchase your products without leaving the app.
   ‍
2. Young, Active User Base
   
   TikTok has a young, highly engaged user base so if your target audience includes younger demographics, this is likely the most ideal platform to connect with them. The user base is also rapidly expanding in the UK.
   ‍
3. Lower Barrier to Entry
   
   Many platforms, like Instagram, require highly polished content while TikTok thrives on authenticity. This means that small brands can spend less resources while creating authentic and effective TikTok videos.
   ‍
4. Early Adopters
   
   The large user base of Gen Z and millennials are often early adopters of new products, making it fitting for startups.
   ‍
5. Potential To Go Viral
   
   TikTok’s algorithm promotes content that resonates with the platform’s users, meaning a well-crafted video has the potential to go viral, which would reach a large audience without a hefty ad spend..
   ‍
6. Influencer Opportunities
   
   TikTok is home to a huge pool of influencers who can help you reach new audiences quickly. Partnering with them can instantly boost your brand’s visibility and credibility, particularly with their existing followers who already trust them.
   ‍
7. Affordable Ads
   
   In comparison to established platforms like Facebook and Instagram, TikTok ads are often more cost-effective. They generally offer a lower cost per impression (CPM) and cost per click (CPC).

Cons

1. Quick Scroll Culture
   
   TikTok users tend to consume content rapidly, sometimes scrolling past videos within seconds. This short attention span culture means that you have an exceptionally limited time in which to capture their attention. Some may find this challenging when trying to showcase a product effectively. Your content will need a high impact, attention-grabbing strategy to be effective..
   ‍
2. Limited Content Shelf Life
   
   Your content on TikTok will likely have a very short shelf life. Videos become irrelevant quickly, meaning your brand will need to constantly create new content to stay relevant.
   ‍
3. Trend-Driven Content
   
   To succeed on TikTok, your brand will need to capitalize on current trends. This is the most likely route to creating viral content but also requires a highly adaptable and ever-changing content strategy.
   ‍
4. Complex Setup & Evolving Ecom Tools
   
   Compared to other platforms, setting up and managing your TikTok Shop or integrating your existing e-commerce sales channels can be more complex. TikTok Shop in the UK and its e-commerce tools are still evolving, so there may be limitations in terms of functionality.
   ‍
5. Time Or Resource Intensive
   
   Consistently creating highly engaging content for TikTok can be time-consuming, especially if you look to tailor content in line with current trends. This may require financial investment in video production or paid collaborations with TikTok influencers.
   ‍
6. Demographic Considerations
   
   TikTok is popular among younger demographics meaning it might not be ideal for brands targeting older, more mature or professional audiences.‍

Your Own Website

In addition to third party marketplaces, you can also sell your products on your own website.

Why should I sell on my own website?

Selling on your own website gives you complete control over your brand's online presence. Many sellers do this using content management systems (CMSs) such as Wordpress, Wix or Shopify. We will cover this for both, Wordpress and Shopify, below. When compared to selling on well-known marketplaces, selling on your own website provides various pros and cons.

Pros & Cons of selling on your own website

Pros

1. Full Brand Control
   
   You have complete control over your brand image and can ensure the website is designed to align with your brand’s identity. You can also control the full customer experience.
   ‍
2. Higher Profit Margins
   
   Unlike third-party marketplaces, on your own site, you don’t need to pay fees (commissions) on each sale you make. You can also select your desired payment processors, giving you more control over profits.
   ‍
3. Customer Relationships and Data
   
   You can directly build relationships with your customers. Unlike most third-party marketplaces, you can collect and store customer data, such as email addresses. This is highly valuable for future marketing, customer analysis and increases the value of your business.
   ‍
4. Third-party Risk Reduction
   
   When listing on third-party marketplaces, you are fully reliant on the marketplace operator. Amongst many other potential issues, changes in policies or system malfunctions may result in your listings becoming inactive. Selling on your own website de-risks you from this, provides increased confidence and may result in less listing down-time.
   ‍
5. Lower Competition
   
   Provided you can drive customers to your website, once there, there won’t be any other competing products.
   ‍
6. Build Customer Loyalty
   
   Since you have full control, you can provide an excellent online shopping experience to customers, offer coupon codes or potentially personalize things for customers. However you do it, this is an opportunity to build customer loyalty which can lead to repeat business and word-of-mouth referrals.
   ‍
7. Flexibility and Freedom
   
   You set your own terms and conditions. You can set pricing, your return policy or shipping options without having to abide by a maketplace's rules. In the same way, you can deploy whatever marketing strategies you wish to pursue, be it email marketing, social media advertising or anything else.
   ‍
8. Global Reach
   
   As with third-party marketplaces, with your own website, you can also achieve global reach. You will have full control of how wide of a customer base you target and the applicable shipping options.
   ‍
9. Ownership & Independence
   
   Unlike listings on third-party marketplaces, you will actually own your website and listings on your website. Your site is a brand asset but also reduces your risk and reliance on third-party marketplaces which may change policies at any time.

Cons

1. Additional Traffic Generating Activities
   
   When you list on third-party marketplaces, you instantly benefit from their existing customer base who already trust the marketplace. When selling on your own website, you will need to invest in either organic or paid traffic generating activities to get customers onto your site. This requires additional time or money.
   ‍
2. More Responsibility
   
   On third-party marketplaces, you don’t need to worry about website development, design, security or payment processors while on your own website you will need to implement and maintain these aspects.
   ‍
3. Fulfillment
   
   On many third-party marketplaces, order fulfillment is fully automated or semi-automated. On your own site, you will need to set up and manage order fulfillment, either yourself or by integrating a third-party solution.
   ‍
4. Customer Service
   
   On many third-party marketplaces, customer service is handled for you, at least to some degree. On your own site, the onus is on you so you’ll need to invest additional resources in this function.
   ‍
5. Domain and Hosting Fees
   
   Unlike on third-party marketplaces, with your own site, you will need to purchase and maintain the security of your domain as well as pay for website hosting.

As stated above, there are various CMSs you can use to deploy your own website. We will compare 2 popular options, Shopify and Wordpress (Woocommerce):

Shopify

Shopify is a well-known e-commerce platform that allows you to start, manage and grow your own website. You can build an online store, sell your products, and manage your site through one dashboard. Depending on your goals, you can use Shopify to sell to customers in the UK and worldwide.

Shopify is easier to use than WordPress but it is more expensive and offers less customization options. Learn how we help these businesses on our Shopify accountants page.

How to sell on Shopify UK

Sign up for Shopify here (includes a free trial). Next, you will need to purchase a domain name, the cost of which is often included within Shopify plans. You can then begin creating your online store. You will need to select your sales channels, payment processing and shipping options. You can learn more on how to start selling on Shopify here. Hear how we've helped dozens of Shopify sellers on our Shopify Accountants page.

Shopify fees UK

Shopify Plan fees‍

There are various plans to choose from, the Basic Shopify plan will cost you £19 per month. This includes the hosting of your website.

Hosting fees

‍These are included from the Basic plan upwards.

‍Domain fees‍

~ £1 per month (between £10 and £20 per year)

Shopify transaction fees

Depending on your Shopify Plan, the payment method and currency used, these fees range from 1.5% +25p at thelow end to 3.1% +25p at the high end. The table below shows all the transaction fees:

If you use a different payment gateway, you will incur additional fees:

• PayPal: Usually 2.9% + £0.30 per transaction.
• Stripe: Usually 1.4% + £0.20 for European cards, or 2.9% + £0.20 for non-European cards.

Amazon FBA integration fees (Optional)‍

A plugin to automate the fulfillment of Shopify orders from Amazon FBA will cost you between £14.79 and £54.48 per month ($19 to $70). Suitable plugins include Amazon FBA shipping by Bytestand and Amazon MCF by WebBee.

Shopify fees per sale example

Using our example product:

Sell price: £20
Listing fee: 0
Shipping fee: £3.39 *
Selling Fee: £0
Transaction fee (Basic Plan): £0.65

Total fees: £4.04

Shopify fee comparison

In this case, excluding the Royal Mail shipping fee, the Shopify fees would be between £0.55 and £0.65 provided the transaction is local.

Including the Royal Mail shipping fee (£3.39), the total fees (£4.04) amount to 20.20% of the sell price. That is 0.8% more than WooCommerce’s 19.4% (£3.88), 2.6% less than Facebook’s 22.8% (£4.56), 11.4% less than Ebay’s 31.6% (£6.32) and 10.1% less than the Amazon equivalent (with FBA) at 30.3%.

Therefore, so far, WooCommerce is the cheapest (per transaction), followed by Shopify, then Facebook, then TikTok, then Etsy and then Amazon and Ebay which are very closely matched (at this product’s specifications).

Etsy VS Shopify fees

Many sellers compare these 2 platforms. Etsy is better suited to sellers of creative/artisanal products, while Shopify is a fitting platform for almost any business. 

Looking at the costs, here is how they stack up using the same product example:

Transaction fees (Excl. the Royal Mail shipping fee):

Etsy: £2.46 - 12.3% of the total selling price

Shopify: £0.65 - 3.25% of the total selling price (Basic Plan)

Transaction fees (Incl. the Royal Mail shipping fee):

Etsy: £5.85 - 29.25% of the total selling price

Shopify: £4.04 - 20.20% of the total selling price

Monthly subscription fees:

Etsy: £0.00

Shopify: £19.00 (Shopify Basic) + £1 to £2 (Domain)

In this case, Etsy will cost (1.81) 9.05% more per transaction. That said, Etsy does not charge a monthly subscription fee. Once you’re selling a significant amount of product, Shopify is the cheaper platform.

If you’re keen to sell on Shopify, you may want to take a look at our blog entitled Do You Need a Shopify Accountant? Shopify Bookkeeping Basics.

WordPress with WooCommerce

WordPress is an open-source content management system (CMS) that allows you to create and manage your own website. Originally, it was designed for blogs, but it has grown to support various types of web content online stores.

How to use WordPress for your website

First you will need to purchase web hosting and a domain name. Next, you can install WordPress. In order to create an ecommerce store and have access to all the ecom functions on WordPress, you will need to install the WooCommerce for WordPress plugin. Here is an A-Z guide on setting up your online store with WordPress.

WordPress is not as easy to use as Shopify but it is free and provides you far more customization options.

WordPress with WooCommerce selling fees

WooCommerce pricing

‍£0 - WordPress and the Woocommerce plugin are both free to use.

Although these are free to use, you will need to purchase a domain and web hosting, which we explain in more detail below.

Hosting fees‍

£1.54 to £3.99 per month

‍Domain fees‍

~ £1 per month (£10 and £20 per year)

WooCommerce transaction fees‍

These range from 1.4% + £0.20 to 2.9% + £0.30 per transaction *

You will need to select your desired WooCommerce payment gateway, each of which has its own transaction fees. For example:‍

• PayPal: Usually 2.9% + £0.30 per transaction.
• Stripe: Usually 1.4% + £0.20 for European cards, or 2.9% + £0.20 for non-European cards.

Amazon FBA integration fees (Optional)‍

A plugin to automate the fulfillment of WooCommerce orders from Amazon FBA will cost you between £14.79 and £54.48 per month ($19 to $70). A suitable plugin here is the WebBee Integrator for WooCommerce.

WooCommerce selling fees example

Using our example product:

Sell price: £20
Listing fee: 0
Shipping fee: £3.39 *
Selling Fee: £0
Transaction fee (1.4% +  £0.20): £0.49

Total fees: £3.88

WooCommerce fee comparison

In this case, excluding the Royal Mail shipping fee, the WooCommerce fees of £0.49 amount to 2.45% of the total selling price. This is 3.4% less than Facebook’s 5.85% (£1.17), 9.85% less than Etsy’s 12.3% (£2.46), 12.2% less than Ebay’s 14.65% (£2.93), and 12.85% less than Amazon’s 15.3% (£3.06).

Including the Royal Mail shipping fee (£3.39), the total fees (£3.88) amount to 19.4% of the sell price which is 0.8% less than Shopify’s 20.2% (£4.04), 3.4% less than Facebook’s 22.8% (£4.56), 12.2% less than Ebay’s 31.6% (£6.32) and 10.9% less than the Amazon equivalent (with FBA) at 30.3%.

Therefore, when considering there is no subscription required, WooCommerce (WordPress) is the cheapest ecommerce platform available to UK sellers, followed by Shopify, then Facebook, then TikTok, then Etsy, and then Amazon and Ebay which are very closely matched (at this product’s specifications).

The cheapest ecommerce platform in the UK

If you are not interested in the social media shopping platforms, then this is how the primary ecommerce platforms stack up:

Here's how all of these ecommerce platforms stack up across the fees:

Per transaction fees

Platform - Percentage (£20 example product's fee in £’s):

1. WooCommerce (on WordPress) - 2.45% (£0.49) 
2. Shopify (using Shopify Payments gateway) - 1.5% to 2% + 25p (£0.55 - £0.65)
3. Facebook - 5.85% (£1.17)
4. TikTok - 7.5% (£1.50)
5. Etsy - 12.3% (£2.46)
6. Ebay - 14.65% (£2.93)
7. Amazon - 15.3% (£3.06)

Monthly subscription fees

From least to most expensive:

1. Facebook - £0 per month
2. TikTok - £0 per month
3. Etsy - £0 per month (£0.16 per listing)
4. WooCommerce (on WordPress) - £2.54 to £4.99 per month (for domain and hosting)
5. Shopify - £19+ per month (Basic Plan)
6. Ebay - £27 per month (Basic Ebay Shop)
7. Amazon - £30 (25 +VAT) per month (Professional Selling Plan)

Overall fees

From least to most expensive, combining the subscription + transaction fees, they stack up as follows:

1. WooCommerce (on WordPress)\
2. Facebook
3. TikTok
4. Shopify (Basic Plan using Shopify Payments)
5. Etsy
6. Ebay (Basic Ebay Shop)
7. Amazon (Professional Selling Plan)

Last Word

Our hope is that this article will help you choose the most ideal place to sell your products online. The best platforms for selling online in the UK will vary depending on your business model, the products you sell, who your ideal customers are and where they hang out online. Now that you’ve seen a comparison of these aspects across the leading ecommerce platforms in the UK, you’re further prepared to make an informed decision on the best ecommerce platform for your brand.

Whether you’re just starting your online business journey or already selling, if you would like to have an accountant who truly understands your ecommerce business, get in touch with us today.