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Prices on Amazon and other online retailers marketplaces will rise in coming years as a result of the changes in the 2025 Budget. Here's how and why.

[b]Why prices could go up[/b]

The government is removing the import-duty exemption for "low‐value imports" (goods worth £135 or less) by March 2029 at the latest. After that, even cheap parcels will attract customs duty.

For items sold on Amazon that are imported from overseas (especially non-UK sellers), this means those products will likely become more expensive once customs duty (and any handling/administration fees) are added. As one estimate suggests, a pair of trainers costing £135 could see a roughly £21 increase to £156 after duty and fees.

Because online retailers often ship from overseas, and many low-cost items currently rely on the duty-free threshold to stay cheap, the removal of that exemption will increase their costs — and many retailers are likely to pass at least part of those costs on to customers, rather than absorbing them all.

[b]How big & widespread the price rises might be[/b]

The extra cost depends heavily on what's being imported (goods’ value, customs duty rate for that category, shipping costs, and whether handling/admin fees are added). Staple goods or ones with low/no duty may see smaller increases, but fashion, electronics or heavily taxed goods could see bigger price bumps.

For UK-based sellers stocking domestic inventory (rather than importing per order), the impact may be minimal. But for overseas sellers — or items imported on demand. The change could meaningfully raise retail prices.

As the change is only confirmed to take full effect by March 2029 at the latest, there is a transition period. Some sellers may adjust earlier (or restructure supply chains) — which could gradually push up prices rather than cause a one-off spike.

[b]What this means for shoppers[/b]

Expect that many goods you currently import cheaply (from Amazon or other marketplaces) — especially if they come from overseas — may become noticeably more expensive over the next few years.

“Bargain” items from overseas may lose some of their price advantage compared with UK retail or local inventory.

The shift could narrow the price gap between cheap imports and UK high-street / local-stock retailers which was one of the aims of the reform.

If retailers absorb some of the added cost, the price rise might be modest — but it's reasonable to expect at least a partial pass-on to consumers.

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