Conversation with FormyCake

"We expanded to the UK site seven years ago, when it was still in the EU. We could already see its potential at that point. After Brexit, the situation became complicated but we knew that we didn't want to leave Amazon.co.uk."
Isabel Manglano
FormyCake Amazon Account Manager
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€39 (excluding VAT)/month plus additional selling fees
FMC-Store was founded in 2017 from a local creative pastry shop. Its mission was to make products that can't be found anywhere else quickly and easily available to its customers. It specialises in creative and licensed products for all ages, and offers more than 3000 different products.

Tell us about your business and your experience with Amazon in the UK. What inspired you to expand your business to the UK with Amazon?

We expanded to the UK site seven years ago, when it was still in the EU. We could already see its potential at that point. After Brexit, the situation became complicated but we knew that we didn't want to leave Amazon.co.uk. We decided to complete all legal and tax procedures so that we could continue shipping our products to Amazon warehouses in the UK.

At what point in the growth process did you decide to expand the business to the UK and why?

Our goal was always to operate on a global scale and include the UK market, even though we had no previous experience there. Our catalogue is largely comprised of Spanish brands and we identified a clear opportunity. We thought that if we positioned these brands in the United Kingdom and successfully collaborated with them, we could unlock significant growth potential.
The UK is one of Amazon's largest marketplaces worldwide, with high purchasing power and a strong online shopping culture. This makes it an ideal place for our products.

Do you use Amazon's customs clearance and shipping (C2S2) solutions to ship to the UK?

Yes, we use them. It's a practical solution that allows us to work with trusted Amazon partners. We work with UPS for shipping and AVASK for customs clearance.

What are the supply chain and shipping logistics like in the UK?

Our company is located in Spain and from there we manage our UK Amazon account, optimise the catalogue and oversee inventory levels.

We prepare our products in our warehouses, where we check and process them for shipment.

When everything is ready, we ship them to Amazon warehouses in the UK using the Amazon Partnered Carrier programme and through UPS, which allows us to ship efficiently while maintaining strong control over timelines.
In the UK, we operate with Fulfilment by Amazon, so once the products are in Amazon warehouses, they take care of the entire process until delivery to the end customer. It's an optimised chain that allows us to maintain control at key stages and benefit from Amazon's first-rate efficiency.

How was the tax and VAT registration managed? Were Amazon tax and customs services used or did you seek help from third parties?

When it comes to customs and taxes, we work with Amazon's partner, AVASK. Having worked with them for years in other countries, we were delighted that they took care of our customs and VAT registration procedures in the United Kingdom. Their status as an approved Amazon partner further increased our confidence in them.

How do you decide which selection is going to be offered in the UK?

We offer practically the same range of products as in Europe, except those that do not meet UK legal requirements, those that have very high logistics costs (by weight or volume) or those that come from local UK manufacturers.

We list products in the UK whenever our analysis of demand and competition indicates that they are viable. In those cases, we develop the product and launch it directly in that market. It's an approach that balances inbound speed with adaptation to the local client.

What tools or software are used to create and manage listings in the UK?

We use internally developed software that allows us to centrally manage inventory, prices, profitability and internal logistics.

When it comes to creating, translating and optimising listings, we combine external tools and artificial intelligence to write content and generate attractive images and videos, while following all of Amazon's recommendations for optimising listings, including A+ content.

What is the advertising and branding strategy of the business? What are the key tools you trust?

First, we analyse profit margins to promote the products that allow for it.

We follow a standard process of launching automatic campaigns to collect data and, once the data is filtered, we create manual campaigns focused exclusively on the most transactional search terms. We rely on external tools to identify high-volume, highly transactional search terms.

Is there a significant difference between European and UK customers?

It seems that customers in the United Kingdom are more willing to pay for high-quality products than customers in other European countries.

How long did it take for the business to become profitable? Could you share some lessons you've learned?

Since we started selling before Brexit, we were profitable almost from the start. Now, it is clear that the initial stages involve indirect start-up costs but by being patient and carefully controlling costs and profitability, I believe it could take only a few months to reach a break-even point.

It should be noted that stock volumes must be adapted to internal demand, not too much merchandise should be sent at the beginning and, once the first sales are detected at a good pace, the level of stock stored in Fulfilment by Amazon should be optimised.

The main thing we have learned is to optimise shipping to reduce costs and to prepare merchandise and listings well to avoid returns.

How do you see Amazon's business in the UK over the next 12 months?

We see ourselves doubling our product range and stock. Our intention for the next 12 months is to continue increasing both the stock of current products to avoid stockouts and the quantity of products available there. We believe that these two actions will help us increase our business volume.

Would you like to add anything else? Do you have any advice for selling partners who are expanding their businesses to the UK?

We encourage other selling partners to explore the UK market because it is one of Amazon's most powerful sites.

It is important to study the viability of the product in the market and, if there is potential, to be willing to invest in entering the United Kingdom. You need to work on it constantly to make it profitable and turn it into a reliable channel and source of income.

To achieve this, we recommend using Amazon's shipping and customs clearance solutions and then focusing on optimising logistics costs to remain competitive.
LOCATION
Spain
SECTOR
Kitchen and baking supplies
LAUNCH ON AMAZON:
2017

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