Costs and pricing
Part of Best ecommerce platform for a UK small business: budget and VAT features
Best ecommerce platform for a UK small business: budget and VAT features
A UK comparison of entry-level ecommerce platform prices in pounds, VAT invoicing, payment fees and what actually suits a sole trader or micro-business.
What to take away
- Shopify Basic suits a sole trader who wants the quickest launch, at £25 a month or £20 on annual billing, with Shopify Payments charging 2.0% plus 25p on UK card orders.
- WooCommerce costs nothing for the core software and about £10 a month in hosting, while Stripe UK charges 1.5% plus 20p per UK card payment.
- Wix Business Basic starts near £20 a month on an annual plan. Etsy charges no monthly fee but adds a listing fee, a 6.5% transaction fee and processing at 4% plus £0.20.
- Register for VAT once turnover passes £90,000 in any rolling 12 months, and choose a plan that already prints a compliant invoice.
- At 30 orders a month and a £25 average order value, the cheapest hosted route costs about £339 a year and a marketplace-only route about £1,075.
Four platforms and the cost shape of each
Entry-level ecommerce for a UK sole trader takes four shapes: hosted subscription, self-hosted open source, all-in-one builder, and marketplace only. The figures below are the headline rates each provider publishes for UK sellers, so confirm them before you commit to an annual term.
Four entry-level ecommerce routes
Hosted entry plan
- Where cost sits
- Monthly, card fees, apps
- VAT invoicing
- Fields on main plans
- Sole trader fit
- Quickest launch
- Watch out for
- Annual commitment
Free plan + transaction fee
- Where cost sits
- No monthly, higher cut
- VAT invoicing
- Varies by plan
- Sole trader fit
- Low or unpredictable volume
- Watch out for
- Confirm before registering
Self-hosted core software
- Where cost sits
- Hosting, domain, extensions
- VAT invoicing
- Via extensions you test
- Sole trader fit
- Cheapest at scale
- Watch out for
- Most work per order
Marketplace only
- Where cost sits
- Listing fees, commission
- VAT invoicing
- Marketplace issues invoice
- Sole trader fit
- Easiest start
- Watch out for
- Least customer data control
Monthly cost
- Shopify Basic
- £25, or £20 billed annually
- WooCommerce
- Core free, hosting from about £10
- Wix Business Basic
- From about £20 on annual billing
- Etsy
- None, listing fee about £0.16
Order fee
- Shopify Basic
- Shopify Payments 2.0% + 25p per UK order
- WooCommerce
- Stripe UK 1.5% + 20p per UK card
- Wix Business Basic
- Wix Payments or a third-party rate
- Etsy
- 6.5% transaction plus 4% + £0.20 processing
VAT invoicing
- Shopify Basic
- VAT fields and tax reports
- WooCommerce
- Plugin you configure and test
- Wix Business Basic
- VAT invoice apps
- Etsy
- Etsy issues the invoice
WooCommerce is the open-source WordPress plugin, so its cost sits in hosting, updates and your own setup time rather than a licence. Our full provider comparison works through the same four routes with the fee detail behind each one.
Example: 30 orders a month at a £25 average order value
Thirty orders a month is £750 in revenue, or £9,000 a year before VAT. Paid apps are excluded below, and Shopify apps would add about £120 a year at £10 a month.
| Route | Yearly platform cost | Yearly order fees | Yearly total |
|---|---|---|---|
| Shopify Basic, paid monthly | £300 | £270 | £570 |
| WooCommerce on £10 hosting | £132 | £207 | £339 |
| Etsy only | £58 in listing fees | £1,017 | £1,075 |
Shopify Payments takes £180 in percentage and £90 in fixed pence across 360 orders. Stripe takes £135 plus £72 on the same volume, which is why the self-hosted route stays ahead at low order counts.
Once registered, about £4.17 of each VAT-inclusive £25 order is tax the customer pays, so keep it out of your margin sums. If that gap decides the shortlist, the Shopify versus WooCommerce comparison runs both on the same basket size and order count.
VAT invoicing decides the shortlist
A compliant invoice shows your VAT number, the rate applied to each line, the VAT amount separately, and a sequential number. Shopify and Wix generate that from the order screen on paid tiers. WooCommerce needs a plugin you test yourself. Etsy issues its own invoice for marketplace sales, so your records must reconcile to it.
You must register once turnover passes the £90,000 threshold set out on GOV.UK in any rolling 12 months, or sooner if you expect to cross it within 30 days. That threshold applies across the UK.
Test one real order before paying for a year: raise the invoice, refund it, then check the VAT report moves by the right amount.
Test VAT invoicing before you commit
- Invoice shows VAT number
- Rate applied to each line
- VAT amount shown separately
- Add delivery, discount, zero-rated line
- Raise one real test invoice
- Refund the order
- Check VAT report moves correctly
Fees that follow the order, not the plan
Card processing is quoted as a percentage plus fixed pence, so a £25 basket carries a heavier relative cost than a £250 one. Refunds normally keep the original processing fee.
A refunded order is not a free order: the pence element, and often the percentage, stays with the processor.
Chargebacks add a fee and paperwork on top. Reviews, email, VAT reports and delivery tools each cost a few pounds a month and can together outrun the plan itself. Gateway support and integration work are set out in the UK payment gateway guide, which lists which platforms accept which providers.
What a sole trader still has to get right
A sole trader files no Companies House accounts, but remains the data controller for every order and marketing list. The ICO's guidance on PECR cookies and similar technologies sets the consent standard, so check that the platform's banner blocks tracking scripts before consent rather than only showing a notice.
Distance sales also carry a 14-day cancellation right, which your returns policy and checkout flow must reflect.
Common questions
Which platform is cheapest for a UK sole trader under 30 orders a month?
WooCommerce on shared hosting, if you do the setup and updates yourself. Shopify Basic wins once your time is worth more than £25 a month, because it removes hosting, security and patching work.
Do I need to register for VAT before choosing a platform?
No. Judge the plan as though you will register, since turnover can cross £90,000 in one strong quarter, and changing platforms later costs more than choosing one that already handles VAT.
Can I switch platform without losing search rankings?
Usually yes, if URLs stay stable or redirect. The risk sits in the migration rather than the platform, so plan redirects and content moves before the domain settings change.
Does an Etsy-only shop still need a privacy policy?
Yes. You remain the data controller for buyer messages and marketing, and PECR covers cookies on any pages you run yourself. Etsy handles its own marketplace pages, not your duties.
