Advantages of Selling Through an Amazon Fulfilment Centre as an Overseas Seller
Breaking into the UK market as an overseas seller can feel daunting at first. You may have strong products, reliable suppliers, and solid demand, but the logistics of shipping internationally, managing returns, and meeting customer expectations often create friction. When customers expect fast delivery and seamless service, fulfilling individual orders from abroad quickly becomes expensive and inefficient.
This is where Amazon’s Fulfilment by Amazon programme changes the equation. By storing your inventory inside the UK and allowing Amazon to manage fulfilment, overseas sellers gain instant access to one of the most advanced logistics networks in the world. As of 2026, this model remains one of the most effective ways for non-UK businesses to scale in the UK market without establishing local warehouses or fulfilment teams.
Why Amazon FBA Appeals to Overseas Sellers
Selling through an Amazon fulfilment centre allows overseas businesses to operate as though they are based in the UK, even when management and operations remain abroad. You ship inventory in bulk to Amazon’s UK warehouses, and from that point onward, Amazon takes responsibility for storage, picking, packing, delivery, customer service, and returns. For sellers operating thousands of miles away, this removes an enormous operational burden.
The real advantage lies in customer perception. UK buyers trust Amazon’s fulfilment standards and expect fast, reliable delivery. When your products qualify for Prime, they immediately become more competitive against domestic sellers. This trust translates directly into higher conversion rates, fewer abandoned carts, and stronger repeat sales. For overseas sellers, FBA is not just a convenience but a credibility booster that makes expansion viable.
Simplifying Logistics and Reducing Delivery Friction
International shipping on a per-order basis is costly, slow, and unpredictable. Customs delays, fluctuating courier fees, and inconsistent delivery times often frustrate customers and increase refund requests. By using FBA, overseas sellers replace dozens or hundreds of individual shipments with a single consolidated import into the UK.
Once inventory is inside Amazon’s fulfilment network, delivery becomes fast and predictable. Most UK customers receive orders within one or two days, regardless of where they live. This consistency improves customer satisfaction while stabilising your costs. Instead of variable shipping fees per order, fulfilment costs become easier to forecast, which makes pricing and margin planning far more reliable.
Prime Eligibility and Sales Growth Potential
Prime eligibility is one of the strongest drivers of growth for Amazon sellers, particularly in the UK market. Millions of UK consumers actively filter search results to show Prime-only listings, meaning non-Prime products often struggle for visibility regardless of quality or price.
For overseas sellers, enrolling in FBA unlocks Prime eligibility automatically. This improves Buy Box performance, enhances ranking in Amazon search results, and increases eligibility for promotional tools such as Lightning Deals. Many international sellers report substantial sales growth after switching to FBA because faster delivery and Prime trust remove hesitation from buyers who might otherwise avoid overseas listings.
VAT Obligations When Using UK Fulfilment Centres
One of the most important considerations for overseas sellers using Amazon fulfilment centres is UK VAT. The moment your goods are stored in a UK warehouse, HMRC considers you to be making taxable supplies in the UK. Unlike UK-based businesses, overseas sellers do not benefit from the VAT registration threshold. Registration is required from the first unit of stock stored in the country.
This means VAT registration must be completed before inventory arrives in the UK. Amazon requires valid VAT details within a set timeframe, and failure to provide them can result in suspended listings or frozen payouts. Once registered, overseas sellers must charge UK VAT on sales, submit VAT returns under Making Tax Digital rules, and keep compliant digital records.
Import VAT and Postponed VAT Accounting
Importing goods into the UK usually triggers import VAT and customs duties, which can create cash flow strain if paid upfront. Postponed VAT Accounting helps alleviate this pressure by allowing import VAT to be declared and reclaimed on the VAT return rather than paid immediately at the border.
For overseas sellers using FBA, this system is particularly valuable. It allows inventory to move into Amazon warehouses without tying up large sums of cash in advance. When managed correctly, it keeps cash flow healthier while ensuring full compliance with UK import and VAT rules.
Deadlines, Penalties, and Compliance Risks
VAT compliance in the UK is strict, and overseas sellers are monitored closely due to data sharing between Amazon and HMRC. VAT returns are typically submitted quarterly, with payment due shortly after the end of each reporting period. Late submissions or payments attract penalties and interest, even if the underlying tax is relatively small.
Repeated non-compliance increases the risk of audits, backdated VAT assessments, and marketplace restrictions. In recent years, HMRC has increased enforcement against overseas sellers using UK fulfilment centres, making proactive compliance essential rather than optional. Staying ahead of deadlines protects both your business finances and your Amazon account.
EORI Numbers and Import Documentation
Before shipping goods into the UK, overseas sellers must obtain a UK EORI number. This identifier is required for customs declarations and ensures shipments are processed smoothly through UK ports. Without it, goods may be delayed or refused entry.
Accurate commercial invoices, correct product classifications, and transparent valuation are equally important. Errors in documentation can result in customs holds, additional charges, or seized inventory. With tighter border controls now firmly in place, getting import documentation right from the start avoids costly disruptions.
Before shipping goods into the UK, overseas sellers must obtain a UK EORI number. This identifier is required for customs declarations and ensures shipments are processed smoothly through UK ports. Without it, goods may be delayed or refused entry.
Accurate commercial invoices, correct product classifications, and transparent valuation are equally important. Errors in documentation can result in customs holds, additional charges, or seized inventory. With tighter border controls now firmly in place, getting import documentation right from the start avoids costly disruptions.
In most cases, simply storing goods in an Amazon fulfilment centre does not automatically trigger UK Corporation Tax. However, complications can arise if HMRC considers your activities to create a UK permanent establishment, particularly where pricing control, stock management, or strategic decision-making occurs within the UK.
Overseas sellers should assess their structure carefully to ensure profits are taxed appropriately and double taxation is avoided. While VAT compliance is unavoidable, Corporation Tax exposure depends on how the business is organised and operated. Early review prevents surprises later.
Making Compliance Work for You
When handled properly, compliance does more than protect you from penalties. VAT registration allows overseas sellers to reclaim VAT on Amazon fees, storage costs, and imports. Over time, these reclaims can significantly improve net margins and offset the cost of professional support.
Using MTD-compliant software connected to Amazon reports simplifies record keeping and reduces the risk of errors. Digital systems also make audits far less stressful by keeping documentation organised and accessible when needed.
Building a Strong UK Presence with Confidence
Selling through an Amazon fulfilment centre gives overseas businesses a powerful route into the UK market. Faster delivery, Prime eligibility, and streamlined logistics remove many of the traditional barriers to international expansion. When paired with proper VAT and import compliance, the model becomes both scalable and sustainable.
With the right preparation and guidance from specialists such as Sterling & Wells, overseas sellers can turn Amazon FBA into a long-term growth engine rather than a short-term experiment. The UK market rewards reliability, speed, and compliance, and FBA allows you to deliver all three from day one.
Sterling & Wells
We are Sterling & Wells — a UK-based team of accountants and tax advisors helping individuals and businesses stay fully HMRC compliant. From VAT and bookkeeping to self-assessments and tax planning, we’ve got your finances covered.