Choosing between OnBuy and Amazon depends on your product type, available time and willingness to compete for visibility. Amazon generally delivers higher traffic but demands more fees, stricter rules and greater competition, while OnBuy offers lower costs and simpler listing requirements yet far fewer buyers.
This guide examines the practical differences in fees, traffic, competition and growth potential to help UK early-stage founders and e-commerce sellers decide where to focus limited resources.
Understanding the two marketplaces
Amazon operates as a massive product search engine where most shoppers arrive with a specific purchase in mind. OnBuy functions more like a traditional online marketplace that mixes auction and fixed-price sales. Both platforms allow UK sellers to list products and fulfil orders from within the United Kingdom, yet their business models create very different day-to-day experiences.
Sellers on Amazon must usually decide between selling as an individual or as a business account, each with different limits and requirements. OnBuy maintains a simpler structure aimed at smaller UK businesses and those seeking multichannel growth. Checking each platform’s current seller terms remains essential because rules evolve regularly.
Comparing seller fees
Both platforms charge a combination of subscription or monthly fees and a percentage of each sale. Amazon’s referral fees vary by category and can represent a significant portion of the sale price; additional charges often apply for fulfilment by Amazon (FBA) including storage and shipping. OnBuy charges a lower percentage commission on sales and typically avoids many of the ancillary fees common on Amazon.
Exact rates change frequently. Always review the latest seller fee schedules on each platform and cross-check against GOV.UK and HMRC guidance for VAT and distance-selling rules that may apply. Many new sellers begin on OnBuy to minimise early cash-flow impact before scaling onto Amazon once margins support the higher fees.
- Calculate total cost of sale for ten typical products on both platforms before deciding.
- Factor in any monthly subscription you might need for enhanced visibility or reporting tools.
- Track payment timelines; Amazon usually pays every two weeks while OnBuy’s schedule can differ.
Traffic volume and buyer behaviour
Amazon attracts substantially more UK visitors than OnBuy. Shoppers on Amazon tend to use the platform as their first stop for everyday items, electronics, home goods and books. This creates a steady flow of potential sales but also means your listing must compete against thousands of similar offers for the same search term.
OnBuy receives fewer visitors, many of whom arrive looking for specific brands or to compare prices across multiple marketplaces. The lower traffic can make it easier to appear on the first page of results, especially for niche or less competitive products. Practical testing shows that consistent listing optimisation on OnBuy can generate initial sales while you build reviews and refine your Amazon strategy in parallel.
Use each platform’s search analytics tools to identify which of your products already have existing demand. Start with items that solve clear problems for UK buyers, such as garden tools, kitchen gadgets or hobby supplies, and monitor weekly order volumes.
Levels of competition
Competition on Amazon is intense. Popular categories often contain hundreds of active sellers offering near-identical products. Standing out requires continuous price monitoring, review generation and advertising spend. New sellers frequently find their listings buried unless they invest in sponsored product campaigns or optimise for Amazon’s A9 algorithm.
OnBuy’s smaller user base means fewer rival sellers in many categories. This can allow a new UK seller to gain visibility more quickly and test pricing strategies without immediate heavy discounting. However, the reduced competition also reflects lower overall demand, so sales velocity may remain modest until you promote your OnBuy shop through social channels or your own website.
- Search your top five products on both platforms and count active competing listings.
- Note the number of reviews on the top three results to gauge market maturity.
- Identify gaps where buyers complain about stock, delivery speed or product quality.
Growth potential and scaling
Amazon offers greater long-term growth potential for sellers who master its systems. Access to Prime badge eligibility, international marketplaces and sophisticated advertising tools can drive substantial volume once you establish strong performance metrics. Many UK sellers combine FBA with their own warehousing to balance control and convenience.
OnBuy suits sellers who want to grow gradually without heavy upfront investment. Its lower fees preserve margin for reinvestment into product development or marketing. Successful OnBuy sellers often expand to eBay, Etsy or their own Shopify store to create a true multichannel presence. Growth on OnBuy tends to rely more on organic discovery and external traffic sources than paid advertising within the platform.
Practical next steps include listing the same product on both platforms with different pricing to test conversion rates. Use unique bundle offers or variations on OnBuy while maintaining core listings on Amazon. Track which channel delivers profitable orders after all fees and returns.
Practical steps to choose and start selling
Begin by listing five products that represent your range on OnBuy first. The simpler approval process lets you gain live listings quickly and start gathering feedback. Document every cost, sale and customer message for the first thirty days. Once you understand real margins, replicate the best performers on Amazon with improved images, keywords and pricing informed by OnBuy data.
Maintain separate spreadsheets for each platform showing weekly sales, refund rates and advertising costs. Adjust listings based on search term performance rather than assumptions. Consider multichannel software only after consistent monthly orders justify the expense. Always verify current VAT thresholds, corporation tax obligations and platform compliance rules through official government sources or the marketplaces themselves.
Many early-stage UK founders test both platforms while keeping overheads low. Shared workspaces such as those offered by Loomworks in Liversedge can provide a registered address and mentoring that supports this multichannel experimentation without immediate financial pressure.
Final considerations before committing
Neither platform is universally better. Amazon rewards scale, operational efficiency and advertising budget. OnBuy rewards agility, lower costs and the ability to drive external traffic. Most sustainable UK e-commerce businesses eventually sell on multiple channels while treating each as a distinct source of revenue with its own tactics.
Revisit your decision every quarter. As product lines mature, some items may perform better on Amazon while niche or higher-margin goods stay profitable on OnBuy. Focus on data from your own sales rather than general opinion, and remain ready to adapt when either platform updates its fees or policies.
Frequently asked questions
Is OnBuy worth it compared with Amazon for new UK sellers?
OnBuy can be worth using first because of lower fees and easier entry. It provides a lower-risk environment to test products and gather reviews. Once you understand demand and margins, adding Amazon makes sense for higher traffic. Many sellers run both in parallel rather than choosing one exclusively.
Which platform has lower fees for UK e-commerce sellers?
OnBuy generally charges lower commission rates and fewer additional fees than Amazon. However, exact percentages and subscription costs change regularly. Always check the current seller terms on each platform and factor in fulfilment, advertising and payment processing costs before comparing net margins.
How does traffic and competition differ between OnBuy and Amazon?
Amazon attracts far higher UK traffic but competition is much greater, requiring constant optimisation and often paid advertising. OnBuy has lower visitor numbers yet fewer competing sellers, making it easier for new listings to appear in search results. This can help early sales while you refine your Amazon approach.
Can I sell on both OnBuy and Amazon at the same time?
Yes. Many UK sellers list the same or similar products on both platforms using different pricing, images or bundles. Running both channels lets you compare performance directly. Use unique SKUs or variations where possible to avoid inventory conflicts and maintain clear analytics for each marketplace.
What should new sellers focus on first when choosing a marketplace?
Start by analysing your products against current search volume and competition on each site. Calculate likely fees on sample orders. Test a small number of listings on OnBuy to gain live experience quickly, then expand to Amazon once you have real sales data and improved listing assets.
Related reading: How to find reliable UK wholesale suppliers, Best inventory management tools for UK multichannel sellers, Amazon private label guide for UK founders. Browse all marketplaces guides or apply to Loomworks.