Tide — £200 free cash, codeREFER200|Capital on Tap — 7,500 points, codeSETTINGUP
UK Startup

Start a business · Retail

How to start an online shop in the UK

Starting a DTC brand online in the UK is wonderfully democratic and brutally arithmetic. The winners don’t “go viral”; they get freight, fees, fulfilment and refunds right—before turning on the ads. Treat it like a trading business with software, not a “brand journey,” and your odds improve fast.

USUK Startup editorial· Reviewed against UK gov.uk and regulator guidanceLast updated May 2026Reviewed against UK gov.uk sources

The single most important truth of UK ecommerce in 2026: unit economics beat taste. Platforms, ads and couriers are commodities; contribution per order and cash conversion are the only defensible moats for a first-time founder. The British backdrop is stable—VAT threshold now £90,000, CE marking recognised indefinitely for most goods in Great Britain, and card fees still in the 1.4–2.9% range. Against that, paid media arbitrage is thinner, and returns eat unprepared merchants. This guide strips glamour out and replaces it with numbers, regulators and workable playbooks. Build a small, high-velocity trading machine that complies with UK law, reserves for returns, and scales fulfilment only when throughput justifies it. Everything else—brand, content, even product—serves those constraints.

Direct answer

Starting a DTC brand online in the UK is wonderfully democratic and brutally arithmetic. The winners don’t “go viral”; they get freight, fees, fulfilment and refunds right—before turning on the ads. Treat it like a trading business with software, not a “brand journey,” and your odds improve fast. Use the key facts, step list and official source links on this page to confirm the decision before you spend money or register anything.

UK VAT registration threshold (2026)
£90,000 trailing 12‑month taxable turnover (HMRC). Voluntary registration often advisable below this if importing with Postponed VAT Accounting (PVA).
Typical UK online payment fees
1.4% + 20p (domestic cards via Stripe) to ~2.9% + 30p (PayPal/intl), BNPL 2.5–5% + fee.
Marketplace fee reality
Amazon referral 8–15% + FBA fees; eBay c. 12.8% + 30p; Etsy 6.5% + 4% + 20p + ads.
Pragmatic pricing rule of thumb
Landed COGS × 4–6 to cover shipping, returns reserve (5–15%), fees, overhead and paid acquisition.

Checklist

Quick checklist

  • Model contribution margin per order line‑by‑line before you buy stock, including a realistic returns reserve and exact courier banding.
  • Apply for a GB EORI and learn your commodity codes in the UK Integrated Online Tariff; sense‑check duty against competitor RRP feasibility.
  • Decide trading structure (sole trader vs limited company) and open a separate business bank account to avoid messy VAT and cashflow.
  • Draft compliant pre‑contract information, terms, privacy and returns policy; align returns window and process to the Consumer Contracts Regs and CRA.
  • Pay the ICO data protection fee (£40–£60), implement cookie consent for non‑essential cookies, and set up a suppression list for marketing opt‑outs.
  • Build the minimum stack: Shopify/Woo, Stripe/PayPal, Klaviyo/Mailchimp, shipping tool, and MTD‑compatible bookkeeping (Xero/FreeAgent).
  • Select suppliers with AQL inspections, samples and verifiable EN/BS test reports; lock packaging that fits Royal Mail Small Parcel.
  • Start from home to ~50 orders/week; only then price 3PLs (Huboo, James & James, Floship for cross‑border) and compare fully loaded costs.
  • Set initial pricing at 4–6× landed COGS; sanity‑check against payment fees, shipping and 5–15% returns reserve before advertising.
  • Launch with Performance Max (clean feed) and a small Meta budget; build email flows first, then weekly campaigns.
  • Enable PVA on your VAT account if registered; retrieve monthly CDS statements and post to Boxes 1 and 4 accurately.
  • Set up product liability/public liability insurance and basic cyber cover; document a recall plan and supplier quality controls.

Section 01

1) Market reality in 2026: earnings, not vibes

The UK remains a heavyweight online retail market by share, but the growth engine is product-market fit plus disciplined operations, not cheap clicks. A solo founder selling small-parcel consumer goods from home can reasonably target £8,000–£25,000 monthly revenue within 12 months if the contribution margin per order clears 40% before ads and returns. Fashion and beauty can support higher AOVs but carry returns of 20–40%; hardgoods (homeware, hobby, pet) see 3–12% returns and steadier margins. Expect early CAC to consume 15–30% of revenue if you rely on Meta/Google; push this towards 10–20% via email/SMS repeat. Cash conversion matters: aim for suppliers on 30% deposit/70% balance at shipment, card payouts in three working days, and couriers billed monthly. Stars here are boring SKUs: light, non-fragile, repeatable purchase, low propensity to be returned. Think consumables, refills, and niche hardware under 2kg that fits Royal Mail Small Parcel.

Section 02

2) Platform deep‑dive: Shopify, WooCommerce, Etsy, Amazon, eBay

Pick the platform that matches how customers buy your category. Search-led, commoditised goods belong on marketplaces; story-led and subscription-friendly SKUs perform on owned stores. Fees are not trivial; model them before design. One note: channel conflict is a choice—use marketplaces to test velocity and clear cash, but keep bestsellers and bundles for your .co.uk where you own the list and margin.

  • Shopify (owned store): Monthly £25–£65–£344 tiers. With Shopify Payments, UK online card fees typically around 1.6–2.1% + 25p depending on plan; add 1–2% extra if you use external gateways. Best for speed, app ecosystem (Klaviyo, Recharge), and checkout conversion.
  • WooCommerce (owned store): The plugin is free; budget £10–£40/month for hosting (e.g., SiteGround, WP Engine far higher), £0–£200 for paid extensions, and Stripe/PayPal fees (typically 1.4% + 20p domestic, 2.9% + 20–30p international). Best where content/SEO is core and you want code-level control.
  • Etsy (marketplace): £0.20 USD listing fee, 6.5% transaction fee on item + shipping + gift wrap, UK payment processing 4% + 20p, and Offsite Ads fee of 12–15% if a sale is attributed. Best for handmade, vintage, craft supplies; weak for generic private label.
  • Amazon (FBA/FBM): Professional plan £25/month + VAT. Referral fees 8–15% by category. FBA domestic fulfilment for small/standard parcels typically ~£2–£4 per unit + storage (seasonal). Best for search-led, well-specified SKUs that can win on reviews and price. FBM requires your own courier setup and Prime you’ll likely miss.
  • eBay UK (Managed Payments): Final value fee around 12–13% + 30p on most categories, with Shop subscriptions (Basic ~£25, Featured ~£69, Anchor ~£399/month) reducing per-listing costs. Great for clearance, refurbished, or price-driven niches; weaker for premium DTC storytelling.
  • Hybrid approach: Start with Shopify/Woo for brand control; syndicate a subset to Amazon/eBay for velocity and cashflow. Maintain distinct bundles/variants on your site to avoid one-to-one price comparisons.

Section 03

3) Product and niche selection (and what kit you actually need)

A niche is an economics thesis. You want a product under 2kg, durable, with a clear problem-solution and repeat purchase or accessories. Avoid SKUs heavily policed by brand owners or requiring onerous conformity assessments unless margins are thick. Validate with small-batch orders and pre-orders rather than taste tests on Instagram. Tooling up is surprisingly cheap: you can launch from a spare room with racking, a label printer and a scale. Spend money on packaging that survives the courier, not on unboxing theatre that inflates postage bands.

  • Filters that matter: High margin potential (landed COGS <25% of target price), small parcelable, low returns likelihood, and search demand you can quantify (Google Keyword Planner, Amazon search volume tools).
  • Avoid: Liquids and hazardous goods (ADR complications), fragile glass/ceramics (packaging cost and breakage), and regulated consumables (unless you know the regime).
  • Minimum viable kit: Thermal label printer (£120–£220), accurate scales (£20–£40), racking (£80–£200 per bay), tape guns and void fill, and a camera/lightbox (£50–£150) for product shots.
  • Software stack basics: Shopify/Woo, payment gateway (Stripe/Shopify Payments/PayPal), email (Klaviyo/Mailchimp from ~£20–£60/month at small lists), shipping tool (Royal Mail Click & Drop, ShipStation, Zenstores), and bookkeeping (FreeAgent/Xero).

Section 04

4) Suppliers and sourcing: Alibaba, Faire and UK manufacturers

Your supplier choice dictates cashflow and quality variance. Alibaba is fine if you treat it like a directory and insist on samples, factory video calls, and third-party inspections (pre‑shipment checks are ~£200–£300 in China). Faire flips the model: you’re the brand wholesaling to retailers; useful later. For buying inventory, EU and UK manufacturers provide easier compliance and shorter lead times at higher COGS. Don’t ignore UK “white label” houses for cosmetics, supplements and candles—they solve regulatory headaches for a margin you can often afford if your positioning is tight.

  • Alibaba protocol: RFQ 3–5 factories, request detailed spec sheets and test certificates (EN/BS standards where relevant), pay 30/70 on PI, and book an independent AQL inspection before balance. Use Trade Assurance for leverage.
  • Lead times and MOQs: Typical OEM lead time 25–45 days + sea freight 30–40 days. MOQs from 200–1,000 units are normal; pay more to go smaller while proving demand.
  • UK/EU suppliers: Expect 10–40% higher unit costs but better communication, compliance documentation (Declarations of Conformity), and 5–10 day shipping. Use Make it British, Yell, and trade associations to find factories.
  • Wholesale platforms: Faire, Ankorstore let you test your brand in indie retail. Margin structure must support keystone (retailers expect 50–60% discount to RRP).

Section 05

5) Importing and customs: EORI, UK Trade Tariff, PVA, IOSS

If you import, get an EORI (Economic Operator Registration and Identification) number from HMRC first; you’ll need it for customs declarations. Classify your goods using the UK Integrated Online Tariff to find your 10‑digit commodity code, tariff duty and any restrictions. Postponed VAT Accounting (PVA) lets you avoid paying import VAT upfront—declare it on your VAT return instead. For EU consumer sales under €150, the Import One‑Stop Shop (IOSS) allows you to charge VAT at checkout and smooth delivery; as a UK firm you’ll normally need an EU intermediary to register. For higher-value consignments, ship DDP with a broker or risk abandoned carts when buyers get surprise fees.

  • EORI: Apply on GOV.UK; companies usually receive it in 2–5 working days. One GB EORI covers Great Britain; NI may also need an XI EORI for the Windsor Framework.
  • Commodity codes: Use the UK Trade Tariff search, read the notes, and pick based on material and function. Errors cause delays, wrong duty and potential penalties.
  • Duty and VAT example: A cotton T‑shirt (HS 6109) often attracts around 12% duty under the UK Global Tariff, plus 20% VAT on the customs value (CIF). Model both in landed COGS.
  • PVA: Access monthly postponed import VAT statements in the Customs Declaration Service (CDS). Include the figures in Boxes 1 and 4 of your VAT return so cash impact nets to zero.
  • IOSS: Valid only up to €150 consignments and not for excise goods. You must display the IOSS number on electronic customs data; keep clean records for 10 years.

Section 06

6) Product conformity and safety: UKCA/CE and sector rules

Compliance is not optional marketing. Great Britain recognises CE marking indefinitely for most goods where UKCA would otherwise apply, which gives you flexibility. But the underlying safety regimes still bite. Write a technical file and obtain test evidence to the correct EN/BS standards, keep Declarations of Conformity on hand, and label correctly. Northern Ireland follows CE/UKNI under the Windsor Framework. Some categories have extra hoops that trip new sellers more than customs ever will.

  • Electronics: Electrical Equipment (Safety) Regulations 2016, EMC and RoHS. Require safe chargers, correct plugs (BS 1363), and UK plug testing. Cheap adapters are recall bait.
  • Toys/children’s products: Toys (Safety) Regulations 2011; test to EN 71 series, small parts, chemical migration. Age grading and warnings must be precise. Keep a UK Responsible Person if you’re the importer.
  • Cosmetics: UK Cosmetics Regulation (retained EU 1223/2009). You need a Responsible Person in the UK, a Product Information File, safety assessment, and SCP notification. INCI labelling is mandatory.
  • Food/supplements: Register food businesses with your local authority at least 28 days pre‑trading. Observe FSA labelling, health claim and allergen regimes; supplements require specific ingredient checks.
  • Furniture/textiles: Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended) still apply to upholstery. Textile labelling regulations demand fibre content clarity.

Section 07

7) Legal structure, registrations, consumer law and data

Decide how you’ll trade. A sole trader is fast but personally liable; a limited company via Companies House gives liability separation and cleaner tax planning. Open a business bank account, register with HMRC for Self Assessment (sole trader) or Corporation Tax (company), and choose when to register for VAT. Your site must meet distance selling law: clear pre‑contract information, a 14‑day cancellation right, and a working returns process. Data protection applies from day one: if you process personal data, pay the ICO data protection fee and respect UK GDPR/PECR on cookies and marketing.

  • Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013: Provide key information pre‑purchase; consumers have 14 days to cancel distance contracts. Refunds due within 14 days of receiving goods back (or proof of return). You can require buyers to pay return postage if disclosed.
  • Consumer Rights Act 2015: Goods must be of satisfactory quality and fit for purpose. 30‑day short‑term right to reject; within six months, faults are presumed present unless you prove otherwise.
  • Website must‑haves: Company details, geographic address, VAT number if registered, privacy policy, cookie notice/consent (for non‑essential cookies), terms of sale, and a returns policy aligned to law.
  • ICO registration: Most ecommerce businesses must pay £40–£60 per year depending on size. PECR governs email/SMS—use soft opt‑in only where lawful and always provide easy opt‑outs.

Section 08

8) Insurance and risk management

One product incident can wipe a year’s profit. Basic covers are cheap relative to the tail risk. If you import or white‑label, you are the “producer” in UK law for liability purposes. Insurers will expect your quality controls, supplier contracts and recall plan in writing. Many marketplaces and 3PLs require proof of product liability thresholds. Don’t forget goods in transit and cyber cover once you’re storing cardholder or personal data at scale.

  • Product liability: £1m–£5m common; £150–£400 per year for micro‑SMEs depending on turnover and category. Higher for cosmetics/electricals.
  • Public liability: If you have a studio/warehouse or attend markets, cover visitor injury/property damage claims.
  • Goods in transit and stock: Covers theft/damage between you, 3PL and customers. Check courier liability caps—basic cover can be derisory.
  • Cyber/data: Covers breach response, ransomware, regulatory investigation costs (ICO). Premiums vary; underwrite MFA, backups and staff training to lower cost.
  • Employer’s liability: Legal requirement if you employ anyone, even part‑time. Display the certificate.

Section 09

9) Pricing, unit economics and a sample P&L that actually adds up

Price backwards from contribution after variable costs, not from “what the market will pay”. For small-parcel DTC, healthy contribution margin before marketing is 40–60%. That must survive your realistic returns rate and cash discounting for promos. Payment fees are not trivial; model them line by line alongside packaging and pick/pack. A “4–6× landed COGS” heuristic usually covers UK shipping bands, payment fees and a 5–15% returns reserve. Where it fails: heavy, fragile or regulated goods where compliance, packaging and courier surcharges devour margin.

  • Unit economics template per order: Selling price – (landed COGS + duty + inbound freight) – (payment fees 1.4–2.9% + 20–30p) – (packaging 20–60p) – (shipping label £2.60–£6.00) – (pick/pack £1.50–£3.00 or your time) – (returns reserve 5–15%) = contribution.
  • Worked example: £35 AOV candle. Landed COGS £6.50; payment fee 2.0%+25p = £0.95; packaging 45p; shipping Royal Mail Tracked 48 £3.10; pick/pack £1.80; returns reserve 8% (£2.80). Contribution = £35 – (£6.50+£0.95+£0.45+£3.10+£1.80+£2.80) = £19.40 (55%).
  • Ads and overhead: If you spend 20% of revenue on ads, that leaves £12.40 per order for overhead and profit. Software/ops often £300–£800/month at early stage; factor in your time cost.
  • Cash conversion: Aim for negative working capital—take pre‑orders or shorter payment terms from gateways (Shopify Payments/Stripe typically pay out in ~3 business days). Push suppliers to 30/70 or better.

Section 10

10) Marketing and retention: Meta/Google vs SEO/organic, and email that compounds

Paid ads are a tax on being unremarkable, but you’ll likely pay it to get moving. The UK stack is standard: Performance Max via Google Merchant Centre for shopping intent, Meta for interruption. Treat content and SEO as compounding assets; product pages with structured data and intent-driven FAQs can drive margin-friendly traffic in six months. Email and SMS are not “nice to have”—they are how you turn CAC into LTV. Build flows before campaigns: welcome, post‑purchase, replenishment, win‑back. A modest list with 20–30% monthly revenue contribution changes cashflow overnight.

  • Google Shopping/Performance Max: Requires clean product feed (title, GTIN, price, availability, delivery). Start with conservative ROAS targets and exclude low‑margin SKUs. Protect brand terms cheaply in Search.
  • Meta Ads: Use advantage+ shopping campaigns to learn quickly; creative drives outcomes more than micro‑targeting post‑iOS. Rotate 3–5 angles; test UGC and short demos. Expect CPM volatility; kill losers quickly.
  • SEO: Technical hygiene (fast theme, Core Web Vitals, no thin variant pages), keyword‑led category architecture, and helpful content (guides, comparisons). Build links via PR for product launches and category explainers.
  • Organic social: Treat as proof and community, not a sales engine. TikTok/IG can spike demand but rarely at bankable CAC for long. Repurpose creative into ads.
  • Email/SMS: Klaviyo/Mailchimp from ~£20–£60/month at small lists. Build automated flows before newsletters. Segment by product and replenishment cycle; aim for >20% of revenue from owned channels by month six.

Section 11

11) Operations and fulfilment: home to 3PL, FBA vs FBM, and real courier costs

Start from home until the parcels drown you—around 40–60 orders/week is the inflexion where a 3PL becomes sane. Royal Mail Click & Drop and Evri/DPD business accounts give you rate cards once you show volume. Parcels under 2kg fit Royal Mail Small/Medium Parcel and keep breakage low. Amazon FBA can be a profit centre or a sinkhole; model prep, storage and long‑term inventory fees realistically. For your own site, a domestic 3PL like Huboo or James & James can unglue the founder from packing while keeping SLAs honest. International expansion adds complexity—consider Hong Kong/Singapore‑based providers like Floship for APAC once UK works.

  • Home fulfilment rule: Stay in‑house until c. 50 orders/week sustained, then price 3PLs. Your time is an input; value it at a realistic hourly rate when comparing.
  • 3PL ballparks (UK): Pick/pack first item £1.50–£3.00, +£0.15–£0.50 per additional item; storage £5–£15 per pallet/week or small‑bin pricing; inbound handling £0.10–£0.25 per unit; postage at pass‑through carrier rates plus small margin.
  • Couriers: Royal Mail Tracked 48 small parcel commonly ~£3.00–£3.50 ex VAT on business rates; Evri 0–1kg from ~£2.60–£3.20; DPD next day often £4–£6. Volumetric weight applies—don’t box air.
  • Amazon FBA vs FBM: FBA wins Buy Box and conversion but adds prep (polybags/labels), storage surcharges and removal fees. FBM is fine if you can hit 2‑day delivery and low defect rates; Prime is tough without SFP.
  • Returns ops: Offer portal‑based returns, pre‑authorise reasons, and encourage exchanges/credit. Reserve 5–15% of revenue in high‑return categories; inspect and restock fast.

Section 12

12) Tax and VAT specifics: £90k threshold, schemes, PVA and marketplaces

You become liable to register for VAT when your UK taxable turnover in any rolling 12 months exceeds £90,000. Voluntary VAT registration can still make sense below that if you import and use PVA or if your buyers are VAT‑registered (B2B). Once registered, you must file under Making Tax Digital (MTD) with compatible software. VAT on shipping you charge is usually standard‑rated when the goods are vatable. Marketplaces can be deemed suppliers in certain cross‑border cases; keep your records clean. If you sell to EU consumers from GB, either register for IOSS (sub‑€150 consignments) or use DDP solutions via carriers/brokers to avoid customer charges on delivery.

  • Schemes: Consider the Flat Rate Scheme only if your input VAT is negligible; most product importers are better off on standard VAT accounting with PVA to reclaim import VAT on returns.
  • PVA on the VAT return: Postponed import VAT goes in Box 1 (output tax) and Box 4 (input tax) with the same value, netting to zero cash impact if fully recoverable. Retrieve statements monthly via CDS.
  • Distance selling to EU: Post‑Brexit, the old distance‑selling thresholds don’t apply for GB businesses. You either use IOSS (requires EU intermediary for UK firms) or register locally where you hold stock (e.g., in an EU 3PL).
  • Record‑keeping: Keep commodity codes, customs values, and supplier invoices for 6 years. Align your bookkeeping (Xero/FreeAgent) with your channels’ tax settings to avoid mismatched VAT rates on shipping and discounts.

Section 13

13) Common mistakes UK ecommerce founders keep making

The patterns are tediously consistent. Most failures are financial engineering problems disguised as creative ones. If you think “we’ll make it on volume”, you’ve already lost—fees, shipping and returns scale with you. The practical errors below account for most of the avoidable write‑offs I’ve seen in first‑year brands.

  • Underpricing because a competitor on Amazon is cheaper—without modelling fees, FBA storage and returns. Price to your costs, not their subsidy.
  • Ignoring returns in categories where 20–40% is normal. A 10‑point miss on returns turns a seemingly healthy 55% contribution into a loss after ads.
  • Buying a 40’ container before demand exists. Land and learn: pay the MOQ premium to validate, then scale.
  • Treating marketplaces as brand channels rather than cash machines. Your .co.uk is for brand and bundles; Amazon/eBay are for velocity.
  • Shipping air. Over‑boxing pushes you into the next weight band and raises breakage risk. Design packaging to carrier rules.
  • No technical files or test reports. A trading standards visit or marketplace takedown is more common than you think.
  • Relying on one ad channel and one creative. CPMs spike; creative fatigues; you need hedges (email, SEO, affiliates).
  • Forgetting the ICO fee and PECR; blasting emails without consent and collecting cookies unlawfully—a soft target for complaints.

Section 14

14) FAQ for first‑time UK DTC founders

The questions below recur in every workshop. The short answers are not legal advice, but they’ll keep you out of obvious holes and point you to the right regulator or scheme. When the sums are large or safety‑critical, take proper professional advice.

  • Do I need an EORI to import samples? Yes, for customs declarations. Couriers sometimes clear low‑value samples under their own EORI, but get your GB EORI early—it’s free and fast.
  • Can I avoid paying import VAT upfront? Yes—if VAT‑registered, use Postponed VAT Accounting and declare import VAT on your return (Boxes 1 and 4) based on your monthly CDS statement.
  • Do I have to use UKCA now? For most goods in Great Britain, CE marking continues to be recognised indefinitely. Check sector exceptions and keep the technical file either way.
  • What’s the VAT on shipping I charge customers? Usually the same rate as the goods. Most consumer goods are standard‑rated, so your shipping charge is too.
  • When should I move to a 3PL? When you’re sustainably over ~50 orders/week or your time on packing is worth more than £15–£20/hour after considering 3PL pick/pack and error rates.
  • Is the 14‑day return right absolute? It’s a cancellation right under the Consumer Contracts Regs for distance sales; you can deduct for diminished value if the customer handled goods beyond what’s necessary to inspect. Exclusions apply (sealed hygiene items once unsealed, bespoke goods).
  • Can I email customers after a purchase without explicit opt‑in? Under PECR’s “soft opt‑in”, you can send marketing about similar products if you collected details during a sale, offered opt‑out at collection and in every message, and comply with UK GDPR.
  • How big should my returns reserve be? Start with 5–8% for hardgoods, 15–25% for fashion. Adjust to your actuals monthly.

Section 15

60‑day launch playbook

Speed matters, but sequence protects margin. This 60‑day plan assumes you’re launching a single‑SKU or tight range from home with UK‑only shipping at first, testing marketplace viability in parallel. Keep cash tight until unit economics are proven. Build for returns and VAT from day one even if below threshold.

  1. 01

    Days 1–7: Nail the economics thesis

    Define your target price and AOV, then work backwards. Use UK Trade Tariff to estimate duty; mock up landed COGS with three suppliers; model payment fees (1.4–2.9% + 20–30p), packaging (20–60p), shipping (£2.60–£6.00), and 5–15% returns reserve. If contribution <40% before ads, kill it or re‑spec.

  2. 02

    Days 5–14: Source and sample

    RFQ 3–5 suppliers (UK/EU/Asia), demand test reports to EN/BS standards, order paid samples. If importing, apply for a GB EORI. Decide early if any product triggers extra regimes (cosmetics, toys, electrics) and line up assessments/Responsible Person if needed.

  3. 03

    Days 10–20: Build the minimum stack

    Register a limited company (if chosen) and a business bank account. Draft terms, privacy and returns policy aligned to Consumer Contracts Regs and Consumer Rights Act. Pay ICO fee (£40–£60). Set up Shopify Basic or WooCommerce, Stripe + PayPal, and Royal Mail Click & Drop. Shoot honest photos; write compliant labels.

  4. 04

    Days 15–25: Pilot demand, soft open

    Run a small pre‑order or limited drop to a small list/community. Test a £300–£800 ad budget split between Meta (creative angles) and Google Shopping (intent), with a clean product feed. Track AOV, conversion rate and CAC. Iterate page speed and FAQs.

  5. 05

    Days 20–35: Lock logistics and compliance

    Place the first purchase order at MOQ or below if possible. Book pre‑shipment inspection for non‑UK suppliers. Finalise packaging to hit Royal Mail Small Parcel. Prepare technical file, labels and Declarations of Conformity. If VAT‑registering (advisable when importing at scale), enable PVA and connect MTD software.

  6. 06

    Days 30–45: Launch proper

    Turn on full site, email flows (welcome, post‑purchase, replenishment) and customer service templates. Syndicate 1–2 SKUs to Amazon/eBay to test velocity; preserve bundles/exclusives on your site. Keep daily eye on contribution after shipping/fees and returns requests.

  7. 07

    Days 45–60: Optimise and decide on 3PL

    If >50 orders/week, price 3PLs (Huboo, James & James) and compare against your true in‑house cost. Tighten ad creative, scale winning audiences, and prune SKUs that don’t clear 40% pre‑ad contribution. Consider voluntary VAT registration if imports ramp and input VAT credits outweigh the compliance burden. Keep cash in reserve for a second PO.

Partner offers

Before you go — claim your reader offers

Two offers we recommend to every UK founder. Codes are exclusive to readers of this guide.

See full terms

Business bank account

Reader offer

Tide Business Account

£200 free cash

£75 when you complete £100 of card transactions within 30 days, plus a further £125 when you deposit £5,000 within 7 days. No credit check, open in 5 minutes.

Tide codeREFER200
Claim £200 free

Business credit card

Reader offer

Capital on Tap business credit card

7,500 free points

Get 7,500 points (worth £75) when you complete your first card transaction within 30 days. 1% uncapped cashback. Up to £250k credit limit.

Capital on Tap codeSETTINGUP
Claim 7,500 points

18+, UK residents only. Offers are subject to each provider's terms. Tide: £75 paid after completing £100 of card transactions within 30 days of opening, plus a further £125 paid after depositing £5,000 within 7 days (total £200, code REFER200). Capital on Tap: 7,500 points (≈ £75) after first card transaction within 30 days; credit subject to status. We may receive a commission if you sign up — it doesn't change the offer to you.