For entrepreneurs in London, Manchester, or the Scottish Highlands, the “best” platform often comes down to two things: Profit Margins and Local Integration. While both are world-class, they treat the British market differently.
1. Cost Comparison (The “UK Tax” on Subscriptions)
In 2026, currency fluctuations and localized pricing make a huge difference.
- Shopify: Uses fixed tiers. In the UK, the Basic Plan starts around £25/month. However, if you don’t use Shopify Payments, you are hit with an additional transaction fee (up to 2%).+1
- WooCommerce: The core is free, but UK-specific hosting (like SiteGround or WP Engine with London servers) will cost you £10–£30/month. The big win? Zero platform transaction fees, regardless of which payment gateway you use.
Guru Insight: If your store does £10,000+ in monthly sales, the lack of transaction fees on WooCommerce often makes it significantly cheaper than Shopify’s mid-tier plans.
2. Handling VAT and HMRC Compliance
Tax is the least favorite topic for any UK business, but getting it wrong is costly.
- Shopify Tax (UK): Shopify has a built-in “UK Tax” engine. It automatically recognizes the £135 threshold for overseas sellers and manages VAT for domestic sales. It also generates VAT-compliant invoices natively.+1
- WooCommerce: You have more manual control. While you can set up tax classes (Standard 20%, Reduced 5%, or Zero-rated) easily, most UK merchants use a plugin like WooCommerce Tax or Avalara. It is slightly more “hands-on” but offers better flexibility for B2B stores needing to display “Ex. VAT” prices.
3. Shipping: Royal Mail, DPD, and Evri
UK customers expect fast, trackable shipping.
| Feature | Shopify UK | WooCommerce |
| Native Labels | Shopify Shipping offers discounted rates with Evri and UPS. | No native labels; requires plugins like Royal Mail Click & Drop. |
| Custom Couriers | Excellent apps for DPD, Parcelforce, and Royal Mail. | Limitless integration with every UK courier via API. |
| Local Pickup | Built-in “Click & Collect” features. | Requires free/paid extensions to manage local pickup. |
4. Payment Gateways (Beyond Credit Cards)
The UK market loves Apple Pay, Google Pay, and increasingly, Klarna.
- Shopify: Shopify Payments is powered by Stripe and includes all these out of the box. It’s a “one-click” setup for UK merchants.
- WooCommerce: You can choose any provider. Many UK stores prefer Stripe or Revolut Business to keep processing fees as low as 1.2% + 20p—beating Shopify’s standard rates.
The Verdict: Which one fits your UK Business?
Choose Shopify if:
- You want to launch your brand in a weekend.
- You want 24/7 support that you can actually talk to.
- You prefer a “Managed Service” where you don’t have to worry about server security or UK GDPR compliance.
Choose WooCommerce if:
- SEO is your priority: If you are a content-heavy brand, WordPress (WooCommerce) is the king of UK search rankings.
- You want full ownership: You want your data hosted on UK servers for speed and compliance.
- You have complex needs: If you offer bespoke British products (like custom-sized furniture) that require a unique checkout flow.