Top 5 Mistakes Amazon UK Sellers Make and How to Avoid Them

Selling on Amazon UK can look easy at first list your products, run some ads, and wait for sales to roll in. But many sellers make small mistakes that lead to big problems with profit, visibility, and even account health.

The UK marketplace has its own set of rules, from VAT pricing and fulfilment costs to localised listings and customer expectations. Avoiding a few key errors can make the difference between growing your business and losing ground.

Here are the top five mistakes Amazon UK sellers make and how you can avoid them.

1. Ignoring VAT and Tax Compliance

VAT compliance is one of the most common issues for UK sellers. If your annual turnover exceeds £90,000, you must register for VAT and charge it on all applicable sales.

Sellers often forget to include VAT in their pricing, which leads to lost margins or Amazon compliance warnings. To stay on track:

Register for VAT early

• Register for VAT early
• Use Amazon’s VAT Calculation Service
• Price your products VAT-inclusive
• Keep updated on tax thresholds and filing dates

Getting tax wrong can result in withheld payouts or penalties. Fixing VAT issues later is far harder — and costlier — than getting it right from the start.

2. Using Non-Localised Listings

One of the biggest mistakes new Amazon UK sellers make is copying listings from the US marketplace.

British buyers expect listings written in UK English, with metric units and culturally relevant tone. Words like “color” or “pants” can hurt your search results use “colour” and “trousers” instead.

Also, UK shoppers prefer honest, benefit-led descriptions over exaggerated claims.

• Use UK spelling and measurements
• Research keywords for Amazon.co.uk
• Adjust tone for UK audiences
• Avoid slang or irrelevant phrases

A localised listing isn’t just translation — it’s optimisation. Writing for UK customers improves visibility and conversions.

3. Mismanaging FBA and FBM

Choosing between Fulfilment by Amazon (FBA) and Fulfilled by Merchant (FBM) can make or break your profit margins.

FBA boosts visibility and sales through Prime eligibility but comes with higher storage and service fees. FBM gives more control and flexibility, especially for heavier or slower-moving items, but demands strong customer service.

• Use FBA for fast-selling and Prime-eligible items
• Use FBM for niche or bulky products
• Use FBM for niche or bulky products

A balanced, hybrid approach often works best for UK sellers.

4. Poor PPC and Advertising Strategy

Many UK sellers run ads without adapting them to local market conditions. The UK is smaller and more competitive, meaning every ad pound must count.

Don’t focus only on ACoS (Advertising Cost of Sales) track TACoS and ROAS to measure real profitability. Use UK-specific keywords (like “trainers” instead of “sneakers”) and avoid wasting money on broad, auto-targeted campaigns.

• Localise your keyword strategy
• Monitor search term reports
• Apply negative keywords to cut waste
• Focus on profit, not just clicks

Smart, data-driven PPC management is key to scaling sustainably in the UK.

5. Neglecting Reviews and Customer Service

In the UK, customer service and reviews carry huge weight. Products with consistent 4+ star ratings perform far better, while poor response times can damage your Buy Box chances.

• Use Amazon’s Request a Review tool
• Respond to every review professionally
• Monitor Buyer-Seller messages daily
• Set up automatic responses for off-hours

Good service builds trust — and trust drives sales.

Final Thoughts

Success on Amazon UK depends on local understanding, compliance, and strategy. By avoiding these five mistakes ignoring VAT, skipping localisation, mismanaging fulfilment, wasting ad spend, and neglecting reviews you’ll build a stronger, more profitable presence on Amazon.co.uk.

Need help with Amazon VAT, FBA management, or PPC optimisation? Startitup Global can help you streamline your operations, stay compliant, and grow sustainably in the UK market.