Amazon UK PPC Guide: Costs, VAT and How It Differs From the US

Amazon.co.uk runs on the same ad system as Amazon.com. The same three ad types, the same auction and the same metrics. That is why so many UK brands copy their US playbook, or a US agency's, and then wonder why the numbers look off.

The differences are small but they add up: a different currency, VAT in the price, a different sale calendar and fewer searches on most terms. This guide covers what stays the same, what changes, and how to set up Amazon pay-per-click (PPC) on Amazon.co.uk so the maths holds.

What stays the same as the US

If you know Amazon PPC in the US, most of it carries over.

• The ad types: Sponsored Products, Sponsored Brands and Sponsored Display all run on Amazon.co.uk.
• The auction: you bid per click, and the highest relevant bid does not always win; relevance and performance count too.
• The metrics: advertising cost of sales (ACoS), return on ad spend (ROAS) and total advertising cost of sales (TACoS) work the same way.
• Brand Registry: Amazon runs Brand Registry as a single, global account, so a brand enrolled for one store can add the UK.
• Brand Analytics: Search Query Performance (SQP) and the other main Brand Analytics reports are available for the UK store.

What is different on Amazon.co.uk

Two of these change how you run ads more than the rest: VAT, because it moves your break-even point, and search volume, because it changes how long you need to wait before judging a keyword.

Ad types you can run in the UK

Amazon's UK seller site lists four ad products:

• Sponsored Products: ads for single products in search results and on product pages. Your offer must be eligible for the Featured Offer.
• Sponsored Brands: your logo, a headline and several products, or a video, at the top of search results. Needs Brand Registry.
• Sponsored Display: ads that reach shoppers on and off Amazon based on what they viewed or bought. Needs Brand Registry.
• Stores: a free, multi-page brand store on Amazon. Needs Brand Registry.

Video works in the UK too. Sponsored Brands video-only creatives and Sponsored Display video creatives are both available on Amazon.co.uk, and Amazon's Video Generator for Sponsored Brands video covers the UK.

VAT and your ACoS maths

UK shelf prices include VAT. Your profit does not, because the VAT goes to HMRC. So the price you use for break-even maths has to be the price without VAT, and your ad sales have to be on the same basis.

Here is the catch: Amazon does not say clearly whether ad sales on Amazon.co.uk are reported with or without VAT, and sellers and tool makers disagree. Check it in your own account before you set a target. Take one order credited to an ad, find the same order in your Business Reports or order report, and compare the two amounts.

Why it matters, with an example:

If your ad sales include VAT but you use the 35% break-even, you will run ads at a loss between 29% and 35% ACoS and not see it. Use the same basis on both sides and the problem goes away.

Work out break-even ACoS on the same basis your ad sales are reported in: with VAT or without, never a mix.

Budgets and bids in GBP

Amazon's own getting-started guide suggests a minimum daily budget of £10 per campaign in the UK. That is a floor, not a plan.

We have not found a current, reliable public benchmark for UK cost per click, so we do not quote one. Use your own numbers instead. The highest bid you can afford on a keyword is:

Highest affordable bid = price without VAT × conversion rate × break-even ACoS

With a £20 price without VAT, a 10% conversion rate and a 35% break-even ACoS, that is £20 × 0.10 × 0.35 = £0.70 a click. Bid below that to make a profit, above it only for a planned launch push.

Because many UK searches have less volume than their US versions, keywords take longer to collect enough clicks to judge. Give a keyword more time, or group close variants, before you cut it.

The UK sale calendar for PPC

Amazon announces dates each year. These are the 2026 UK events Amazon has confirmed:

For the plan before, during and after an event, see our Prime Day and event PPC service.

Running the UK and the US together

Most brands that sell in both markets should run separate campaigns for each, with their own keywords, bids and budgets. Amazon notes that advertising in several countries may mean several currencies, and its currency view only changes what you see, not what you are billed.

• Build UK keyword lists from UK searches, not from translated US lists. Spelling and words differ.
• Set UK targets from UK margins, after VAT and UK fees.
• Report both markets together in one currency so you can compare them, as our international PPC service does.

If you are a UK brand planning a move to the US, read our UK to US expansion plan.

Common UK PPC mistakes

• Mixing VAT bases: a break-even ACoS without VAT against ad sales with VAT.
• Copying US bids: US bids in dollars say little about what a UK click is worth.
• Using US keywords: "diaper bag" and "sneakers" are not how most UK shoppers search.
• Cutting keywords too early: lower volume means you need more days of data.
• Planning for July Prime Day: in 2026 Prime Day was in June in the UK.

If you sell on Amazon.co.uk and want a second opinion, see how we work with UK brands.