VAT changes everything
In the US, the listed price is what you keep before fees — tax is added at checkout and isn't your money to begin with. In the EU and UK it's the opposite: the displayed price is tax-inclusive. A UK buyer paying £24 is paying roughly £20 for the product and £4 of VAT that you collect and remit to the government. That £4 was never revenue.
The sting in the tail: Amazon still charges its referral fee on the full VAT-inclusive price, not the £20 you keep. So you extract VAT to find your real revenue, but you pay commission on the bigger number. A seller who treats the £24 like a US-style tax-exclusive price will think they're making money they aren't.
Currency: comparing apples to apples
Each marketplace pays you in its own currency, so the only way to compare the UK against the US against Germany is to convert everything to one base currencyat the current exchange rate. FX moves daily and conversion carries a cost, which means a marketplace sitting on a thin margin can tip profitable or unprofitable as rates drift. Model at today's rate, and don't bank on a marketplace whose margin only works at a favorable exchange rate.
Different fees, plus the cost of getting there
Every marketplace has its own referral percentages and fulfillment fees, and — unlike a domestic product — there's a real cost to land inventory in the region: freight, duties, and the logistics of getting units into that country's fulfillment network. That export/landed cost is a per-unit drag the domestic version of the product never had, and it's often what decides whether a marketplace is worth entering. The core fee mechanics are the same ones in the FBA fees guide — expansion just adds VAT, FX and export on top.
The comparison that matters
Put it all together and the honest question is one number: net profit per unit, in your base currency, marketplace by marketplace — after VAT extraction, local referral and fulfillment fees, FX conversion, and export cost. Run that and the picture usually surprises you: one new marketplace clears a healthy margin, another barely breaks even, a third loses money once the extra costs land. Better to know before you ship a container across an ocean.
FAQ
Why is expanding to the UK or EU not just a translation job?+
Because the money works differently. In the EU and UK the price a buyer sees is tax-inclusive — it includes VAT that you collect and hand to the government, so it was never your revenue. Amazon's referral fee is also charged on that full VAT-inclusive price. A US seller used to tax-exclusive pricing can badly overestimate margin abroad if they don't extract VAT first.
How does VAT actually change my profit?+
Take a £24 sale in the UK at 20% VAT. About £4 of that is VAT you remit, so your revenue is really £20 — but Amazon's referral fee is calculated on the full £24. You keep the price minus VAT, minus a referral fee charged on the pre-VAT-removal total, minus fulfillment and cost of goods. Skip the VAT extraction and every downstream number is wrong.
What about currency?+
Revenue arrives in the local currency — GBP, EUR, CAD — so to compare a marketplace against your home one you convert to your base currency at the current exchange rate. FX moves daily and conversion isn't free, so a marketplace that looks marginally profitable can flip either way as rates change. Model it at today's rate and leave headroom.
How do I know if a new marketplace is worth it?+
Compute net profit per unit in your base currency for each marketplace — after VAT extraction, that market's referral and fulfillment fees, the FX conversion, and the export/landed cost of getting inventory into the region. Some marketplaces clear a healthy margin; others don't survive the extra costs. The only honest comparison is like-for-like in one currency.