How to choose a e-Commerce platform to start your e-Business ?

Amazon UK

• Market Share: As of December 2023, Amazon accounted for over 48% of desktop traffic in the UK, leading other platforms.
• Fee Structure: Amazon charges various fees to sellers, including referral fees and fulfillment fees. Referral fees can be as high as 45% in certain product categories.
• Logistics and Delivery: Amazon offers fast Prime member delivery services and a global logistics network.
• Suitable Sellers: Ideal for sellers with stable sales volumes, especially those wanting to leverage Amazon’s logistics and customer service systems.

eBay UK

• Market Share: As of December 2023, eBay’s desktop traffic share in the UK was about 23.5% (source: statista.com).
• Fee Structure: eBay offers free basic listings but charges fees on each sale.
• Features: eBay supports auction-style listings, suitable for unique or rare items.
• Suitable Sellers: Ideal for sellers of second-hand goods, collectibles, or items with special value.

Gumtree UK

• Market Position: Gumtree is a leading classified ads platform in the UK, suitable for local transactions.
• Fee Structure: Most listings are free, with no sales commissions.
• Suitable Sellers: Best for sellers of second-hand goods or those conducting local transactions.

Temu (Emerging Platform in 2025)

• Market Performance: Temu reached a global gross merchandise volume of $15.1 billion in 2023 and reported over $32 million revenue in the UK market.
• Pricing Strategy: Temu’s prices are 60% to 80% lower than Amazon, especially competitive in clothing, electronics, and home goods.
• Logistics and Delivery: Temu offers free delivery, with standard shipping times from 6 to 25 days, and expedited options of 2 to 3 days.
• Seller Environment: Temu has very low seller fees, attracting many sellers.
• Suitable Sellers: Ideal for cost-conscious sellers seeking high sales volumes, particularly those who can offer high-quality, low-priced products.

Summary Comparison of Major Platforms (Bullet Points)

• Amazon
  Market Share: High
  Fee Structure: High referral and fulfillment fees
  Logistics and Delivery: Fast with Prime benefits
  Suitable Sellers: Medium to large sellers with stable sales looking for automated logistics and customer service
• eBay
  Market Share: Medium
  Fee Structure: Free listings, low to medium transaction fees
  Logistics and Delivery: Handled by sellers
  Suitable Sellers: Flexible sellers offering second-hand, rare, or customized goods
• Gumtree
  Market Share: Lower, mainly local
  Fee Structure: Free listings, no sales commission
  Logistics and Delivery: Local meet-up and seller coordination
  Suitable Sellers: Individuals or small sellers conducting local second-hand sales
• Temu
  Market Share: Rapidly growing emerging platform
  Fee Structure: Extremely low seller fees, highly competitive
  Logistics and Delivery: Free delivery, varying speed options
  Suitable Sellers: Price-sensitive sellers seeking quick exposure and high volume, including newcomers and cross-border sellers

2025 E-commerce Platform Recommendations: Amazon, eBay, Gumtree & Temu

• New Sellers: Recommended to start with eBay or Gumtree due to lower entry barriers, good for market testing.
• Experienced Sellers: Consider Amazon or Temu for broader customer reach and higher sales potential.
• Cost-conscious Sellers: Temu offers low seller fees and competitive pricing, suitable for sellers prioritizing cost efficiency.

More Than Just Selling: Key Tax and Platform Policy Updates Every Seller Should Know

Recent years have seen many policy changes in the UK e-commerce environment. Sellers must pay close attention to compliance when choosing platforms. VAT registration thresholds and requirements differ by platform. Some require VAT numbers and identity verification before opening a store. Not all platforms accept overseas sellers, especially individuals, who may face more restrictions.

Since 2024, the UK has implemented the Digital Platform Reporting regime, requiring e-commerce platforms (like eBay, Amazon) to report seller income. Platforms may withhold payments or freeze funds if documentation is incomplete, causing complicated verification processes for many sellers.

Overseas sellers must navigate VAT filing, identity verification, and payment restrictions. New sellers often ask: “What expenses can I deduct? What costs count as allowable?” These factors significantly affect your net profits and compliance costs.

Our accountants specialize in tax handling for major e-commerce platforms and can assist you from store setup, VAT handling, to accounting planning — so you can focus on selling without tax worries.

Conclusion and Advice - How to Choose e-Commerce Platforms

UK e-Commerce platform is an attractive market, a relatively wealth and huge market for e-sellers. However, choosing an e-commerce platform today is no longer just about "Amazon or eBay" but about navigating a more complex, diverse market. Amazon remains the top choice for scalable operations. eBay suits creative and flexible sellers. Gumtree and Temu provide new opportunities in local sales and price competition.

When selecting a platform, consider your capital scale, product characteristics, expected profit margins, and logistics capabilities — not just popularity.

If you are running or planning to start an e-commerce business in the UK, choosing the right platform is only the beginning. Subsequent tax compliance, warehousing, logistics, and corporate structure planning are equally critical. We offer comprehensive consultancy from accounting to e-commerce operations. Contact us for personalized advice.

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