For many US and Canadian eCommerce brands, the UK is the first step when selling internationally. It’s one of the largest eCommerce markets in the world, and online shopping already accounts for around 28 percent of all retail sales in the UK, making it a well established market for overseas brands.
While demand is strong, UK customers also have clear expectations around delivery speed and returns. What works for domestic orders in the USA or Canada doesn’t always translate once you start selling to UK shoppers, especially as order volumes increase.
In this guide, we’ll cover what US and Canadian brands need to consider when entering the UK market, and where fulfilment decisions start to matter as growth picks up.
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Why the UK is often the first international move
The UK’s eCommerce market offers both scale and familiarity. Shared language reduces friction around marketing and customer support, while platforms like Shopify and Amazon are already widely used by UK consumers.
This combination is why expanding your eCommerce brand to the UK is often seen as a more predictable next step compared with entering markets where online shopping behaviour is still developing. UK customers are confident buying online, price aware, and used to fast fulfilment.
There’s also a strong appetite for overseas brands. Research from DHL shows that 59% of global consumers regularly buy from retailers outside their home country, and UK shoppers are among the most active cross border buyers. The opportunity is there, but only for brands that meet local expectations once an order is placed.
Step 1: Register for UK VAT before you scale
One of the biggest mistakes US and Canadian brands make is assuming they can treat the UK like a domestic extension of their existing operation.
If you plan to import goods into the UK and store them locally, you will usually need to register for UK VAT, regardless of turnover. This applies even if you sell through marketplaces like Amazon.
Goods imported into the UK may also be subject to import VAT and customs duty, particularly for consignments valued above £135. These costs need to be factored into pricing early to avoid margin erosion later.
This step is not about paperwork for the sake of it. It directly affects pricing, checkout transparency, and customer trust.
Step 2: Decide how you will ship goods from North America to the UK
At the early stage, many US and Canadian brands ship individual orders directly to UK customers. This can work for testing demand, but it becomes expensive and slow as volumes increase.
International shipping times from the US to the UK typically range from 5 to 10 working days, depending on carrier and service level. That’s already outside what many UK customers expect for standard delivery.
Once order volume becomes consistent, brands usually move to bulk shipping inventory into the UK and fulfilling orders locally. This reduces per order shipping costs and improves delivery speed.
This is where working with a UK based international fulfilment partner becomes relevant, especially for brands that don’t want to set up their own warehouse operation.
Step 3: Prepare for UK delivery expectations
UK customers are used to fast delivery, even for non premium shipping options.
Research from Statista shows that next day and two day delivery are now considered standard expectations for UK online shoppers, particularly for domestic orders.
For US and Canadian brands, this is often the point where fulfilment decisions start to directly affect conversion rates. Long delivery times can suppress repeat purchases, even if demand exists.
Holding stock in the UK allows brands to offer delivery speeds that align with local expectations without inflating shipping costs.
Step 4: Put a UK returns process in place early
Returns are not an edge case in the UK. They’re part of normal buying behavior.
Data from the UK logistics provider Whistl shows that around49% of UK online shoppers returned at least one item in the past year, with higher rates in fashion and lifestyle categories.
For US and Canadian brands, routing returns back to North America is expensive and slow. Most brands expanding successfully into the UK either:
– Use a UK returns address
– Process returns through their UK fulfilment partner
– Consolidate returned stock for resale or bulk shipment
Ignoring this step often leads to customer service issues and negative reviews early on.
Step 5: Localise pricing and customer communication
While the UK market feels familiar, there are still localisation details that matter.
Pricing should be shown in GBP, VAT inclusive where appropriate. Delivery times should be written for a UK audience, not translated from US messaging. Customer support hours and response expectations may also need adjusting.
This is often covered alongside wider setup decisions when brands follow a more structured approach to entering the market, which we outline in our step by step guide to entering the UK eCommerce market.
Step 6: Move fulfilment closer to the customer as volumes grow
Most US and Canadian brands follow a similar pattern:
– Test demand with cross border shipping
– Validate product market fit
– Move stock into the UK once volume justifies it
At this stage, fulfilment becomes less about logistics and more about protecting margins, delivery promises, and customer experience.
This is why many brands choose to work with a UK fulfilment partner rather than managing shipping, storage, and returns from overseas. It allows growth without operational complexity increasing at the same pace.
For US and Canadian eCommerce brands, expanding into the UK isn’t just about demand. It’s about understanding where the operational differences sit and addressing them early.
VAT registration, delivery expectations, returns handling, and fulfilment location all play a role in how successful expansion becomes. Brands that plan these steps upfront tend to scale more predictably than those that react once problems appear.
If you’re exploring expansion and weighing up international fulfilment services in the UK, aligning fulfilment with these steps is often what turns initial traction into sustained growth.
FAQs: Expanding your USA/Canadian eCommerce Brand into the UK
Is the UK a good market for US and Canadian eCommerce brands?
Yes. The UK is one of the largest eCommerce markets globally, with online sales accounting for around 28 percent of all retail sales, according to the UK Office for National Statistics. UK consumers are also comfortable buying from overseas brands, particularly when delivery and returns meet local expectations.
Can US and Canadian brands sell to the UK without a local company?
Yes. You do not need a UK limited company to sell to UK customers. Many US and Canadian brands sell into the UK using their existing business structure. However, you may need to register for UK VAT, depending on how goods are imported, stored, and sold.
Do US and Canadian sellers need to register for UK VAT?
In most cases, yes. If you are importing goods into the UK or storing stock locally for fulfilment, UK VAT registration is usually required. This applies whether you are using a UK based fulfilment partner or selling through marketplaces like Amazon UK.
Is shipping directly from the USA or Canada to the UK viable long term?
Direct shipping can work at the testing stage, but it often becomes limiting as order volumes increase. Longer delivery times, higher shipping costs, and complex returns handling can impact conversion rates and customer satisfaction. Many brands switch to UK based fulfilment once demand is proven.
Why do UK customers expect faster delivery than international shipping allows?
UK consumers are used to quick delivery, often within two to three days. This expectation has been shaped by large marketplaces and domestic retailers. Brands shipping directly from North America often struggle to meet these standards consistently, which is why local fulfilment becomes important.
What are the benefits of using UK based fulfilment for US and Canadian brands?
UK based fulfilment allows brands to hold stock locally, dispatch orders faster, manage returns within the UK, and reduce per order shipping costs. It also helps overseas brands compete more effectively with UK based retailers by improving the overall customer experience.
Can a UK fulfilment partner handle returns for international brands?
Yes. Many UK fulfilment providers offer returns management alongside order fulfilment. This allows US and Canadian brands to offer local returns to UK customers without shipping items back across borders, which improves trust and reduces costs.
How does fulfilment fit into a wider UK expansion strategy?
Fulfilment affects delivery promises, returns policies, pricing, and customer satisfaction. It should be planned alongside VAT registration, platform setup, and customer support. Brands that treat fulfilment as part of a wider UK market entry strategy tend to scale more smoothly.