The UK is one of the most attractive eCommerce markets in the world – but also one of the most regulated.
Online retail accounts for around 28 percent of all retail sales in the UK, one of the highest proportions in Europe, and online spending is still growing year on year. Market reports estimate UK online retail sales at roughly $127 billion in 2024, with forecasts for continued growth as mobile and marketplace shopping expand.
So the demand is there.
But if you’re sitting in the US, Australia, or elsewhere in Europe, the actual question isn’t “Is there opportunity?” – it’s:
“How do we enter the UK market in a way that’s legal, tax-compliant, and commercially sane?”
This guide walks through that step by step, weaving in the key UK government and HMRC rules you’ll need to know, plus practical considerations around platforms, fulfilment and customer expectations.
Table of Contents
Step 1: Test if the UK really makes sense for your brand
Before diving into HMRC forms and EORI numbers, you need to know whether the UK is a strategic market, not just an interesting idea.
1.1 Understand the scale and shape of the UK eCommerce market
A few headline points:
– The UK has one of the most mature eCommerce sectors in Europe, with Britain, Germany and France together accounting for nearly 78 percent of Western European ecommerce sales.
– Online retail’s share of total UK retail sales is around 28 percent, and that share has stabilised at a higher level post-COVID instead of reverting to pre-pandemic norms.
For an international brand, that means:
– You’re entering a digitally sophisticated market
– Customers are already very comfortable buying from websites and marketplaces
– Expectations around delivery speed, returns, and customer service are correspondingly high
If you want a wider view of why so many international brands prioritise Britain as their first European launch, you may find our guide on why expanding to the UK market is a great idea useful as a broader strategic backdrop.
1.2 sanity-check your unit economics
This is where expanding from different regions looks a bit different:
From the US or Canada
– Longer freight routes, higher shipping costs
– Duties and VAT added on import
– Typically makes direct-from-US shipping to each consumer too expensive at scale
– A UK fulfilment centre becomes important once you move beyond testing
From Australia / New Zealand
– Even longer transit times
– British customers are very used to next-day or two-day delivery options, especially from Amazon and leading D2C brands
– It’s hard to compete if each order ships individually from the Southern Hemisphere
From the EU
– Post-Brexit, the UK is now a separate customs and VAT territory, so you deal with import procedures even if goods are coming from France, Germany, or the Netherlands
– Transit is still fast, but you can’t treat the UK as just another “local” EU country
Run realistic scenarios for:
– Landed cost into a UK warehouse (including freight, duties, and fees)
– Storage + pick/pack + UK delivery cost per order
– Expected return rate for your category in the UK
– Marketplace or payment fees, if relevant
If your margin evaporates as soon as you factor in VAT, duties, and fulfilment, you may need to revisit pricing or product selection before committing.
Step 2: Choose your route to market – and understand the implications in law
From a government/regs point of view, how you sell into the UK matters:
– Are you selling direct from your own website to UK consumers?
– Are you using an online marketplace (Amazon, eBay, TikTok Shop, etc.)?
– Are your goods outside the UK at the point of sale, or already stored in a UK warehouse?
These distinctions are exactly how HMRC splits up the VAT rules for overseas sellers.
Let’s look at the commercial and regulatory angles together.
2.1 Launching on marketplaces (e.g. Amazon, TikTok Shop, eBay)
There are three main fulfilment paths. Each has strengths and limitations depending on the seller’s stage of growth.
Marketplaces are often the fastest way to test demand:
– Access to a large, trusted UK audience
– Marketplace-managed payments
– Options for using fulfilment networks like FBA
BUT the government rules here matter:
– For consignments £135 or below imported into the UK and sold via a marketplace, the marketplace is usually responsible for VAT.
– For goods that are already in the UK at the point of sale, you, as the overseas seller, must register and account for VAT.
2.2 Selling via your own website (Shopify, WooCommerce, etc.)
If you sell directly to UK consumers through your own store, you’re responsible for:
– Complying with UK consumer protection and distance-selling rules
– Displaying prices clearly, including VAT where applicable
– Handling returns and refunds according to UK consumer law
– Accounting for VAT on UK sales when the rules say you must
UK guidance on online and distance selling is very clear that you must provide specific pre-contract information and honour cancellation rights. That includes:
– Your business name and contact details
– Total price, including all taxes and charges
– Delivery costs and arrangements
– The consumer’s right to cancel within a set period (usually 14 days for most online purchases)
Under the Consumer Rights Act 2015, goods must be:
– Of satisfactory quality
– As described
– Fit for purpose made known to the seller
If you don’t meet these obligations, consumers can demand repair, replacement, or refund – and regulators can act against unfair practices.
In practice: if your brand site is your main route to market, you need to build your UX, policies and copy around these expectations from day one.
2.3 A hybrid approach (most brands end up here)
Most international brands eventually combine:
– Marketplaces (reach and volume)
– Their own site (brand control and better margins)
This is completely workable, but:
– Stock in UK warehouses must be tracked clearly
– VAT responsibilities differ by sales route
– You must understand how HMRC treats each flow of goods
Planning early prevents messy tax situations later.
Step 3: Get your basic regulatory foundations in place
Once you know how you’re entering the market, the next step is to put the boring but vital building blocks in place.
This is where the “gov talk” really starts: EORI numbers, import procedures, VAT registrations, and consumer law.
3.1 EORI number: your ID for UK customs
If you’re importing goods into Great Britain (England, Scotland, Wales) to sell, you’ll normally need a GB EORI number (Economic Operators Registration and Identification).
The official GOV.UK guide “Import goods into the UK: step by step” lists this as one of the first actions to take.
In practice:
– If you’re based outside the UK and want to act as the importer of record, you’ll usually need a GB EORI
– Your freight forwarder or customs agent can’t simply “lend” you theirs – it’s tied to your business
– If you’re expanding from the EU and already have an EU EORI (starting with an EU country code), you still need a separate GB EORI for UK imports
Without it, you’ll hit delays at the border and may not be able to complete customs declarations in your own name.
3.2 Importing goods into the UK – the government’s own step-by-step
GOV.UK breaks the import process into clear steps that apply no matter where you’re shipping from: US, EU, Asia, Australia, anywhere.
In very simplified form, the official steps are:
1. Check if you need a licence or special permission
– Some products (weapons, certain chemicals, controlled goods, etc.) are subject to special import controls.
– Most everyday consumer goods aren’t restricted, but it’s still your job to check.
2. Get your EORI number if you don’t already have one.
3. Classify your goods and work out duties
4. You’ll need the correct commodity codes (HS codes) for your products.
5. These determine the import duty rate and any additional measures.
6. Decide who acts as “importer” and who makes customs declarations
– Many international brands use a customs agent or freight forwarder to submit import declarations on their behalf.
– Your contract with them should be very clear about responsibilities, especially around incoterms (e.g. DAP vs DDP) and who pays which costs.
7. Pay or account for any import duty and import VAT
– Duty is normally calculated on the customs value (which includes shipping and insurance).
– Import VAT is usually calculated on the value plus duty.
8. Make sure goods meet UK standards and labelling rules
– Depending on your product category, there may be detailed requirements (for example CE/UKCA marking for some electronics, ingredient and safety labelling for cosmetics, etc.).
You don’t need to handle every part yourself, but you do need to understand the framework well enough to brief your logistics partners properly.
3.3 VAT for overseas sellers: the big picture
HMRC splits VAT rules into two primary scenarios:
– Goods sold via online marketplaces
– Goods sold directly by an overseas seller
Within that, the key questions are:
– Are the goods outside the UK at the time of sale?
– Are the consignments £135 or below?
– Are the goods stored in the UK?
In simplified terms:
– If your goods are stored in the UK, you must register for VAT and charge VAT on UK sales
– For consignments under £135 sold via marketplaces, the marketplace usually accounts for VAT
– For direct sales or consignments above £135, you typically account for VAT
To make HMRC’s VAT logic easier to follow, here’s a quick decision flowchart showing how VAT applies depending on where the goods are located and how they’re sold.
Step 4: Comply with UK consumer law
The UK has some of the strongest online consumer protections in the world. Overseas sellers must comply.
4.1 Clear pre-contract information
You must provide:
– Business name and contact details
– Full price including VAT and charges
– Delivery costs and timelines
– Cancellation and returns information
4.2 14-day cancellation period
For most online purchases, UK customers have:
– 14 days to change their mind after delivery
– A further 14 days to return the goods
Refunds must follow strict timelines.
4.3 Goods must meet UK quality standards
Under the Consumer Rights Act:
– Goods must match their description
– Products must be of “satisfactory quality”
– They must be fit for any purpose you’ve claimed
In practice this means:
– Your sizing charts, ingredient lists, safety warnings, and claims must be accurate
– If your product imagery is styled for a US or EU audience, it may need UK-specific updates
– You must be prepared to accept returns for goods that customers believe weren’t as described
This is another reason why UK-based fulfilment becomes more than an operational convenience — it’s often the only way to meet these legal timelines without enormous return shipping costs.
Step 5: Get your VAT position correct (without drowning in complexity)
VAT is where many overseas brands get stuck, not because the rules are impossible but because there are several branching scenarios.
HMRC’s official guidance for overseas sellers lives here and here.
But let’s simplify what matters for your expansion.
5.1 If goods are already stored in the UK
You must:
– Register for VAT
– Charge VAT on UK sales
– Submit VAT returns (usually quarterly)
– Keep digital records under Making Tax Digital rules
This applies whether goods are stored with Amazon (FBA), a UK 3PL like PackPro, or your own UK facility.
5.2 If goods are outside the UK at the time of sale
HMRC introduces the £135 rule:
– For consignments £135 and below, VAT is charged at the point of sale
– For consignments above £135, import VAT and duty apply at the border
Where it gets more interesting is marketplaces:
5.3 When marketplaces collect VAT for you
If you sell through platforms like Amazon, eBay or TikTok Shop:
– For consignments £135 or below, the marketplace often becomes the “deemed supplier”
– They collect and remit VAT
– Your pricing and invoicing must reflect this
This helps certain brands launch quickly, but as soon as stock sits in the UK, the responsibility shifts back to you.
5.4 When you must register for VAT even without a UK entity
Many overseas sellers assume VAT registration requires a UK company. It doesn’t.
If your business meets HMRC’s criteria, you must register even if:
– You have no UK entity
– You have no UK employees
– Your business is entirely foreign
The registration portal: https://www.gov.uk/vat-registration/non-established-taxable-persons
This usually becomes unavoidable once you place goods in a UK warehouse — which most brands do once they scale beyond testing.
Step 6: Understand UK Customs
Once you’re ready to move stock into the UK, the focus shifts from strategy to compliance. Every overseas brand – whether shipping to a 3PL, Amazon FBA, or a rented facility – must follow UK customs rules. The official resource is here: https://www.gov.uk/import-goods-into-uk
At the heart of this process are three essentials: getting the right importer ID, classifying your goods correctly, and choosing the right shipping terms.
6.1 Get Your GB EORI Number
A GB EORI is your business ID for UK customs. Without it, your goods simply won’t clear the border.
You’ll need it to:
Act as the importer
Submit customs declarations
Pay import VAT and duties
Apply here: https://www.gov.uk/eori
Even if you already have an EU EORI, it isn’t valid for Great Britain — you still need a GB-prefixed one.
6.2 Classify Your Goods Correctly
Every product entering the UK must have a commodity code using the UK Global Tariff system.
This code determines:
How much duty you’ll pay
Whether the product has import restrictions
What documents (if any) are required
Incorrect classification is a common cause of delays, rejections and unexpected charges.
6.3 Choose the Right Incoterms
The biggest mistake new exporters make is offering DDP (Delivered Duty Paid) without realising they’re taking responsibility for everything — duty, import VAT, handling fees, and customs clearance.
In contrast:
– DAP shifts some cost/responsibility to the buyer but can create poor customer experience if they’re hit with extra charges at the door.
– FCA / FOB + UK fulfilment is often the cleanest route: ship pallets to a UK warehouse, then fulfil domestically with predictable costs and faster delivery.
Most international brands settle here once they scale beyond a testing phase.
Step 7: Choose a Fulfilment Model That Supports UK Customer Expectations
If customs is the “legal foundation,” fulfilment is the “customer experience foundation.” British consumers have high expectations compared to many markets. Quick delivery, straightforward returns and reliable tracking are non-negotiable.
As you weigh up the best operational setup for your brand, it’s worth looking at how international fulfilment works end to end, especially if you expect to ship cross border while you scale.
A slower delivery model isn’t just inconvenient — it kills conversion rates.
7.1 Fulfilling Orders From Your Home Country (Viable Only for Testing)
Sending orders from the US, EU or Australia can work for early validation, but not for long-term growth.
Delivery is slow, postage is expensive, and returns become unmanageable.
Useful while testing the market, but nearly impossible to scale.
7.2 Using Amazon FBA
FBA is a strong option if Amazon will be a major sales channel. Benefits include:
– Prime Shipping
– Built-in Trust
– Amazon-managed returns and customer service
The trade-off is less control over packaging, brand experience and costs – especially long-term storage fees.
7.3 Using a UK 3PL (The Best Option for DTC and Hybrid Brands)
A UK fulfilment centre allows you to:
– Import in bulk instead of shipping to customers individually
– Offer fast, affordable domestic shipping
– Comply easily with UK return timelines
– Maintain full control of brand experience
– Centralise fulfilment across Shopify, Amazon, TikTok Shop and other platforms
For DTC-led brands, this is the model that unlocks sustainable growth.
Step 8: Build a Clear Operational Launch Plan
Once the compliance and fulfilment structure is in place, you can build an actual go-to-market plan. This is where everything becomes real – the point where your legal, logistical and customer experience work joins up.
A strong launch plan normally includes:
Pre-launch essentials
– EORI acquired
– VAT registration submitted (if required)
– Commodity codes double-checked
– Freight route and incoterms confirmed
– UK returns policy finalised
– Payment methods tested (PayPal, Klarna, Apple Pay, major cards)
Inventory + Warehouse Setup
– Shipment booked
– Commercial invoice and packing list prepared
– UK warehouse onboarding completed
– Shopify/Amazon integrations connected
– Returns address active
Website + Listings Localised
– Prices set VAT-inclusive
– UK spelling applied (fulfil, colour, organisation)
– Delivery times updated
– Measurements shown in metric
– Customer service contact details visible
Final test orders
Place:
– A test Shopify order
– A test Amazon order
– A test return
If all three work smoothly, you’re genuinely ready to trade.
Step 9: Go Live — Then Monitor the First 90 Days Closely
Your first three months in the UK will dictate your long-term profitability. This is the phase where feedback loops matter most.
Pay close attention to:
Delivery performance
Late deliveries are the top driver of negative UK reviews.
Return reasons
If customers repeatedly complain about sizing, unclear expectations, or misleading descriptions, adjust listings immediately.
VAT filings & digital records
The UK requires digital recordkeeping under Making Tax Digital.
Cash flow
Imported stock, fulfilment fees, duty, VAT and ad spend often hit at the same time. Smooth cash flow forecasting is key to surviving early operations.
Step 10: Scale With Structure
Once you’ve mastered the first 90 days, scaling becomes far more predictable.
Most successful international brands eventually:
– Add more SKUs
– Expand into Amazon EU or TikTok Shop UK
– Introduce subscriptions
– Use the UK as a bridge to European fulfilment
– Build retention and LTV-focused marketing
At this point, the UK stops being a “new market” and becomes a core revenue region.
Conclusion: Entering the UK Market Isn’t Simple — but It Is Achievable
Expanding into the UK isn’t something brands stumble into. It requires structure, a clear understanding of HMRC rules, and a willingness to operate to the standard British consumers expect. But the reward is huge. The UK offers one of the world’s most mature online shopping audiences, high spending power, and a consumer base that embraces international brands as long as the experience feels local.
The brands that win here aren’t necessarily the biggest — they’re the ones that take compliance seriously, communicate transparently, and put reliable fulfilment at the centre of their operations. Once you understand how VAT applies, how to import goods correctly, how to align with UK consumer law, and how to build a fulfilment setup capable of fast delivery and easy returns, the barriers that once looked overwhelming become manageable.
From that point on, the UK becomes more than a new market. It becomes a launchpad into broader Europe, a stable revenue stream, and a competitive advantage over brands that never figured out how to expand properly.
With the right groundwork, the right partners, and a clear operational plan, entering the UK market isn’t just possible — it’s one of the most strategically valuable moves an international eCommerce brand can make.
FAQs: Expanding your eCommerce Brand into the UK
Do I need a UK company to sell to UK customers?
No. Overseas brands can sell into the UK without forming a UK entity. However, depending on how you store and sell your goods, you may still need to register for VAT, obtain a GB EORI number and follow UK consumer law.
When do I need a GB EORI number?
You need a GB EORI number if you’re importing goods into Great Britain. Even if you already hold an EU EORI, it won’t cover UK imports. Without a GB EORI, your shipments won’t clear customs.
Do I need to register for VAT as an overseas seller?
You must register for VAT if you store goods in the UK or if your sales fall under HMRC rules requiring you to charge VAT yourself. This applies even if you don’t have a UK entity or employees.
How does the £135 VAT rule work?
For consignments valued at £135 or below, VAT is charged at the point of sale.
If you’re selling on marketplaces such as Amazon or TikTok Shop, they often collect VAT on your behalf for these orders. For consignments above £135, import VAT and duty apply instead.
Is shipping orders directly from my home country viable?
It’s only practical for market testing. High postage costs, long delivery times and hard-to-manage returns make it unrealistic for scaling. British shoppers expect fast delivery, reliable tracking and easy returns.
Do I need to comply with UK consumer law if I’m based overseas?
Yes. UK consumer law applies to any business selling to UK consumers. This includes providing clear pricing, offering a 14 day cancellation period, honouring returns and ensuring products match their description.
What is the best fulfilment model for UK expansion?
For most international brands, a UK fulfilment centre or 3PL is the most effective model. It allows bulk import, fast domestic delivery, affordable returns handling and easier VAT compliance. FBA works well for Amazon heavy sellers, but limits brand control.
What matters most in the first 90 days after going live?
Monitor delivery performance, return reasons, VAT filings and cash flow closely. Early operational issues tend to snowball if left unaddressed. Fast problem solving here has a major impact on long-term UK profitability.