Business Bank Accounts for Amazon Sellers

Getting your Amazon finances set up right

Selling on Amazon in the UK is straightforward once your money flows are set up properly. The right business bank account keeps cash moving, separates personal and business spending, and helps you stay compliant with HMRC. If you operate as a limited company, a business account is not just good practice - it is required. Sole traders are not legally required to have one, but many find it makes bookkeeping, VAT, and payouts far easier.

UK-registered Amazon sellers must use a UK bank account for disbursements, with details that match Seller Central. Digital banks such as Starling Bank and Revolut have become popular with sellers thanks to rapid onboarding, low fees, useful notifications, and smooth integration with accounting tools. This setup reduces admin and the risk of payout delays.

A tidy banking setup is more than admin - it is the backbone of predictable cash flow.

Who this guide is for

If you sell on Amazon UK - whether you are planning your first FBA shipment or scaling a mature storefront - this guide will help you understand when a business account is required, which features to prioritise, and how to link everything in minutes without tripping compliance checks.

What counts as a business bank account?

A business bank account is an account in your trading name designed for business transactions. For UK limited companies selling on Amazon, using a business account is a legal requirement and aligns with both HMRC expectations and Amazon’s verification processes. Sole traders do not have to open one by law, but doing so usually pays off in cleaner records and simpler tax returns.

For UK-registered Amazon sellers, payouts must go to a UK GBP account. The account holder can be the business or the owner, but the details must match what is shown in Seller Central. Many digital providers offer features tailored to e-commerce, such as categorised spending, tax pots, and multi-currency options for international sales. If you plan to sell in the US or EU, consider an account that lets you receive and hold funds in multiple currencies to reduce conversion costs.

In short, the right account helps you receive payouts reliably, stay compliant, and manage your numbers in real time.

How to open and link your account

Most UK business accounts can be opened online in under 10 minutes. Expect to provide ID, proof of address, and your company details if you run a limited company. Digital banks typically verify you via a quick in-app check, while high street banks may take longer.

Once your account is live, connect it to Amazon Seller Central. Add the sort code and account number exactly as they appear. Amazon applies a security period of around three days when you change payout details, so plan for this before major sales events. Keep the account name consistent with your legal entity or registered seller name to prevent verification flags.

Next, connect your bank to accounting software such as Xero, QuickBooks, or FreeAgent so transactions feed through automatically. If you handle any cash, consider providers that allow Post Office cash deposits. Finally, set up separate workspaces or “spaces” for VAT and stock to ringfence funds for tax and inventory.

Why it matters for UK FBA sellers

A dedicated business bank account reduces the risk of payout holds and the back-and-forth that can happen during Amazon’s compliance checks. That means smoother cash flow, more predictable replenishment, and less stress when you need to pay suppliers.

It also keeps business and personal spending apart, which simplifies bookkeeping and makes VAT returns more accurate. For sole traders, this cleaner audit trail can save time and costs at year-end. If you plan to expand to Amazon US or EU, a multi-currency account helps you receive funds in local currencies and control when you convert to GBP.

Perhaps most importantly, a proper account supports a professional image with suppliers and lenders. Clear records and reliable payouts make it easier to negotiate terms and plan for growth.

Upsides and downsides

Watchpoints before you apply

Before you hit apply, check that your legal name, trading name, and Amazon seller details align exactly. Small inconsistencies can cause verification loops and payout delays. Review fees carefully - including monthly account fees, card charges, international transfers, and FX margins. If you handle cash, confirm whether you can deposit at the Post Office and what limits apply.

If international expansion is on the cards, prioritise accounts that let you receive and hold multiple currencies, and review the costs of converting back to GBP. Make sure your chosen account integrates seamlessly with your accounting platform, as this will streamline VAT and year-end reporting. Finally, remember that Amazon applies a 3-day security period when you change payout details, so avoid switching accounts right before big promotions or peak trading.

Other routes you could take

1. Use a personal account as a sole trader - permitted but not recommended due to messy records and higher risk of verification issues.
2. Open a sole trader business account - lightweight, low cost, and keeps finances clean without forming a company.
3. Choose a high street bank - in-branch support and wider services, usually with longer onboarding times.
4. Digital-first providers - faster setup, rich app features, and strong integrations that suit online sellers.
5. Multi-currency business accounts - receive USD and EUR for international marketplaces and convert when rates suit.
6. Specialist currency services alongside your UK account - reduce conversion costs while keeping UK payouts compliant.

Common questions

Q: Do I need a business bank account as a UK Amazon seller? A: If you are a limited company, yes - it is required. Sole traders are not legally required to have one, but it is strongly recommended for cleaner records and smoother payouts.

Q: Does Amazon UK require a UK bank account for payouts? A: Yes. UK-registered sellers must use a UK GBP account in the business or owner’s name that matches Seller Central details.

Q: Will a business account reduce payout holds? A: Typically yes. Business accounts tend to align better with Amazon’s verification checks, especially as sales volumes grow.

Q: How long does it take to open an account? A: Many digital banks can approve you online in under 10 minutes with standard ID and business documents. High street banks may take longer.

Q: What if I sell in the US or EU as well? A: Consider a multi-currency business account so you can receive funds in USD or EUR and convert at competitive rates when it suits you.

How Switcha can help

Switcha will connect you with the best options for what you are looking for, from fast digital accounts to multi-currency solutions. We help you compare fees, features, and integrations side by side so you can choose confidently, set up quickly, and get back to growing your Amazon business.

Important information

This guide provides general information, not financial or tax advice. Always check requirements with Amazon and HMRC for your situation. Fees, features, and eligibility vary by provider. Consider seeking professional advice before making decisions.