The 2025 UK Online Marketplaces Guide for Sellers

The UK is home to a diverse online marketplace landscape. Alongside global giants like Amazon and eBay, there are numerous local players catering to specific needs and niches. This diversity provides merchants with a wide array of options for showcasing their products without the need to build extensive marketing or logistics networks themselves.
 

Amazon.co.uk

The UK’s largest and most dominant online marketplace by far, Amazon.co.uk handles more than half of all e-commerce transactions in the country – either through its own retail offering or third-party sellers via the Amazon Marketplace.

With over 400 million monthly visits, Amazon offers merchants unmatched reach, advanced fulfillment (FBA), and strong consumer trust through services like Prime one-day delivery. Its massive product range covers everything from electronics and books to groceries and fashion.

• For sellers, Amazon provides powerful tools, analytics, and access to millions of customers – but also high competition, rising advertising pressure, and a complex fee structure. In recent years, changes like VAT on seller fees and category-specific adjustments (e.g. reduced fashion fees under £15) have made it important to monitor cost shifts closely.

Whether you're an established brand or a growing seller, Amazon remains a key sales channel in the UK – but success requires strategy, optimization, and clear margins.

• In this detailed article, we take a look at the advantages and disadvantages of Amazon's Seller programme: Take a look!

The UK e-commerce market reached an estimated £130 billion in online retail sales in 2024, maintaining its position as the largest in Europe, making up around 30% of total retail turnover in the country – one of the highest online shares globally. 

• Around 45% of this online spending flows through multi-vendor marketplaces, underscoring their critical role in the digital retail ecosystem.
   
• Amazon.co.uk continues to dominate, accounting for roughly 25% of total UK e-commerce revenue via its own retail operations, and exceeding 50% when third-party Marketplace sales are included.
   
• eBay UK maintains a solid second place, with estimates placing its gross merchandise volume (GMV) at approximately £10–12 billion annually, equating to 8–10% of the UK’s online retail market.
   
• TikTok Shop, launched in 2022, has quickly grown into a major player, capturing an estimated 1–2% of total e-commerce spend in the UK by the end of 2024 – driven largely by beauty, fashion, and viral lifestyle products.

Smaller platforms like OnBuy, Etsy, and Vinted hold modest but growing shares, contributing to a highly dynamic and fragmented marketplace environment. With social commerce and mobile-first shopping continuing to rise, marketplaces are expected to play an even greater role in shaping the UK's digital economy in 2025 and beyond.

Deciding to offer your products on online marketplaces in the UK can significantly impact your business strategy as an e-commerce merchant.

Here are the key advantages and disadvantages you should be aware of:

Advantages:

Increased Visibility:

• Access to millions of potential customers.
• High-traffic platforms boost the likelihood of impulse purchases.

Lower Upfront Costs:

• No need for developing and maintaining your own online store.
• Reduced marketing expenses by leveraging the platform's resources and reach.

Easy Entry into E-commerce:

• Quick setup of seller accounts.
• Intuitive tools and processes for product listing and management.

Access to International Markets:

• Easier entry into exporting through the global reach of the platforms.
• Language barriers and local differences are mitigated by the structure of the online marketplace.

Additional Services:

• Many online marketplaces offer extra services like payment processing, logistics, and customer service support.
• Opportunity to benefit from fulfilment providers who automate the storage and shipping of your products.
   

Disadvantages:

Competition:

• High competition on popular platforms can make it difficult to stand out.
• Price wars with other sellers can erode profit margins.

Dependence on the Platform:

• Your business becomes reliant on the marketplace's rules and fee structures.
• Changes in policies or fees can have a direct impact on your profitability.

Limited Brand Visibility:

• It's challenging to build your brand's presence and loyalty through a third-party platform.
• Customers may associate their purchase with the platform rather than with your brand.

Control Over Customer Experience:

• Limited control over the end-to-end customer experience, which can impact customer satisfaction and repeat business.
• Restrictions on direct communication with customers can limit relationship building.
   

Our Tip: Leverage the best of both worlds! Combine the reach and infrastructure of established marketplaces with brand strengthening and customer loyalty through your own sales channels, like an individual online store. This approach reduces dependence on platforms, increases revenue, and enhances customer engagement.

If you need support with multichannel logistics, feel free to reach out at any time, or check out our comprehensive blog post for the best tips on omnichannel fulfilment!

In addition to traditional online marketplaces in the UK, there are various alternatives with their own set of benefits available to you as a merchant in the UK.

We've summarized the alternative online sales channels for you:

1. Own Online Store

Relatively easy-to-use online shop systems like Shopify or WooCommerce, allow for the creation of a completely unique e-commerce website, with full control over your brand experience.

• Benefits: Direct customer communication, collection of valuable customer data, complete control over design and user experience.
  
  Our Tip: Invest in search engine optimisation (SEO) and employ online marketing strategies to drive traffic and thus more customers to your website.

2. Local Online Marketplaces

Platforms like Gumtree or local online shopping portals offer the opportunity to directly address customer segments in your area and offer products for self-pickup or local delivery.

• Benefits: Strengthening the local economy, personal customer service, lower logistics costs, greater focus on regionality and sustainability.
  
  Our Tip: Emphasize the regional aspects of your offer and build a strong presence in your area.

3. Social Media Sales Platforms

Sales channels like Facebook Marketplace, Instagram Shopping, or Pinterest allow for selling directly through social media, where there's already a high user engagement rate.

• Benefits: Access to a large and engaged user base, opportunity to utilize influencer marketing.
  
  Our Tip: The more present you are, the better. Use high-quality product photos and videos, and actively engage with your community to build a strong brand awareness and boost your sales.

Selling on online marketplaces in the UK involves navigating a complex landscape of legal and regulatory requirements. 

These are designed to protect consumers, ensure fair trading, and maintain compliance with both UK and EU regulations, where applicable. Key considerations include:

• Data Protection and GDPR: 

  Compliance with the General Data Protection Regulation is crucial for sellers collecting and handling customer data. This involves obtaining explicit consent for data collection, ensuring data security, and providing clear privacy policies.

• Consumer Rights Act 2015: 

  This Act outlines the rights of consumers, including the right to return products within 14 days of purchase, which applies to online sales. Sellers must be transparent about return policies and ensure they comply with these regulations.

• VAT and Taxation: 

  Sellers must understand their obligations regarding VAT, especially since Brexit has introduced changes to VAT rules for goods sold into the UK. Registering for VAT in the UK may be necessary depending on your sales volume and where your business is based.

• Product Compliance and Safety: 

  Products sold in the UK must comply with relevant safety standards and regulations. This includes CE marking for certain product categories, demonstrating that products meet EU standards for health, safety, and environmental protection.

• Intellectual Property Rights: 

  Sellers must ensure they do not infringe on the intellectual property rights of others. This includes using proprietary images or selling counterfeit goods, which can result in legal action.