With economic pressures and a shifting retail landscape, it’s fair to ask: Is it still worth importing products into the UK for e-commerce? The answer is yes.
Despite inflation, cost of living concerns, and evolving buying habits, UK shoppers are still spending online. In fact, 2025 has provided some strategic advantages for e-commerce businesses that know how to meet this demand, especially those importing quality goods at competitive prices.
E-commerce in the UK is here to stay
Post covid, there has been an increase in lazy shoppers. But what does this mean? A lazy shopper is one who prioritises convenience and speed via research or comparing prices when making purchases. They are likely to rely on online shopping, impulse buys or pre-packaged solutions to reduce the effort required for shopping and wanting delivery right at their doorstop.
UK online retail sales accounts for 30% of total UK retail sales, which has drastically increased from 21.6% in 2019.
Convenience and choice continue to drive digital buying. Whether through TikTok Shop, Amazon or independent websites, UK consumers are comfortable and enthusiastic about shopping online.
Cost conscious shoppers = Big opportunity
The cost-of-living crisis has made consumers more price sensitive than ever. So, shoppers are actively seeking better value, alternatives to big brands and more affordable products.
Importing allows e-commerce businesses to:
Source goods at lower costs
Price competitively without cutting into profits
Offer alternatives that appeal to budget conscious buyers
If you can deliver quality at a better price, you can win the customer.
Demand for niche, global and ethical products is growing
Even in a tighter economy, UK shoppers still want variety for convenience and more option, hence they are turning to online retailers to find it.
Differentiated categories may include:
- Innovative tech and gadgets
- International skincare and beauty products
- Ethical, eco-friendly or sustainable alternatives
- Cultural or region specific items unavailable on the UK high street
If you can import something unique or rare in the local markets, you will stand out in a competitive market.
Marketplace sales are booming
Amazon UK remains one of the most visited e-commerce platforms in Europe due to increased convenience of next day delivery, a user-friendly interface and most importantly, a well reputed marketplace.
TikTok Shop is also gaining serious traction, especially among younger audiences.
Selling through these platforms gives importers exposure and massive advantage via:
- Built in audience trust
- Powerful promotion tools
- Fast fulfilment infrastructure
By importing into the UK and leveraging marketplaces, you can quickly get in front of buyers faster and scale quickly.
Logistics and VAT are more manageable than you think
One of the biggest barriers to importing is the logistics complexity. But since January 2021, things are smoother with tools like Postponed Import VAT Accounting (PIVA).
Any business that is UK VAT registered and imports goods into the UK can utilise the PIVA scheme.
With the right setup, you can:
- Avoid paying import VAT upfront
- Streamline custom processes
- Store and fulfil goods domestically for faster delivery
Some key benefits of PVA:
- Rather than waiting weeks (or months) to reclaim it through your VAT return, you can invest that spare cash into your business right now
- No upfront VAT means fewer delays and smoother processes
- Simplifies your VAT returns as all of your import VAT gets included in your standard VAT return and there is no separate reclaim process, just account for it and move on.
For example:
Let’s say you import £100,000 worth of goods –
- Without PVA: You pay £20,000 in VAT at the point of import, then reclaim it later on your next VAT return due
- With PVA: You don’t pay anything upfront. Instead, you record the £20,000 as both output and input VAT on your return, subject to the normal rules for VAT recovery. The cost to your business? £0. The cash is in the bank when you need it
How can Menzies help you?
The Menzies specialist retail team work with online retailers across the UK and beyond to assist with:
Logistics and supply chain management
Menzies can help optimise your logistics to ensure efficient business processes and delivery to your UK e-commerce customers. Alongside this, should you be wanting to expand towards the global market, we can introduce you to our global network of advisors that provide local expertise and support in various countries.
VAT advisory and compliance
As the global trade continues to evolve, sellers face several challenges and complexity when navigating UK VAT regulations and custom procedures. We support sellers trading with the UK by offering expert guidance on VAT compliance and customs procedures, e.g., with UK VAT registration, navigating the consignment threshold, managing import VAT through PIVA and more. We also help sellers understand their obligations when using online marketplaces like Amazon, ensuring a smooth cross-border operations through us and our global HLB network advisors.
The UK has one of the most advanced fulfilment networks in Europe, meaning you can deliver faster and more reliably. It is an ideal hub for both domestic and international e-commerce.
Import into the UK. Get the pricing right. Get the logistics right. Get the VAT compliance right.
Beyond this we have expertise within Menzies who can assist you with business operations, tax compliance, financial management and more. Should you wish to have a conversation please feel free to contact akumar@menzies.co.uk.
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