Channel Margin Comparison

Amazon charges a referral fee of 7-15% depending on product category (most categories are 15%), plus a monthly subscription of GBP 25 (Professional plan) or GBP 0.75 per item (Individual plan). If using FBA, there are additional fulfilment fees starting at GBP 2.70 for small items plus monthly storage fees.

eBay charges a final value fee of 12.8% of the total sale price (including postage) plus GBP 0.30 per order. Store subscribers get lower rates. There are no listing fees for the first 1,000 items per month. Promoted listings cost an additional percentage if used.

Etsy charges a GBP 0.16 listing fee per item (renewed every 4 months or on sale), a 6.5% transaction fee on the sale price, and payment processing fees of 4% + GBP 0.20. If using Etsy Ads or Offsite Ads, there are additional costs of 12-15% on attributed sales.

Shopify plans start at GBP 25/month (Basic). Payment processing via Shopify Payments is 2.9% + GBP 0.25 per transaction on the Basic plan, dropping to 2.4% on Advanced. Using third-party payment providers incurs an additional 2% surcharge. There are no per-listing fees.

TikTok Shop charges a 5% commission on each sale plus GBP 0.30 per transaction. New sellers may get a promotional reduced rate for 90 days. There are no monthly subscription fees. Shipping can be handled by TikTok logistics or the seller.

Shopify typically has the lowest per-transaction fees (2.9% + GBP 0.25) but requires a monthly subscription. TikTok Shop is competitive at 5%. For sellers with high volumes, Shopify or TikTok Shop usually work out cheapest. For low volumes, Etsy or eBay avoid monthly commitments.

Multi-channel selling can increase sales but adds complexity. Use inventory management software to avoid overselling. Consider that each platform has different customer expectations (Amazon buyers expect fast delivery, Etsy buyers expect handmade/unique items). Start with one platform, optimise, then expand.

Net profit margins of 10-20% are typical for e-commerce businesses. Handmade and niche products can achieve 30-50%. Commoditised products on Amazon often see 5-15%. Margins below 10% are risky after accounting for returns, advertising, and overhead costs not included in per-unit calculations.

True profit per unit is: selling price minus platform fees, minus product cost (COGS), minus shipping cost, minus packaging, minus returns allowance (typically 2-10% depending on category), minus advertising cost per unit, minus VAT if applicable. This calculator covers the first three — add the others manually for a complete picture.

If your taxable turnover exceeds GBP 90,000 in a rolling 12-month period, you must register for VAT and charge 20% on UK sales. Amazon, eBay and other marketplaces require VAT registration details for UK sellers. Once registered, you can reclaim VAT on business purchases but must file quarterly returns.