How to Sell on Amazon Without Inventory | Make Money on Amazon With No Inventory

how-to-sell-on-amazon-without-inventory

Are you wondering how to sell on Amazon without inventory to generate money as an Amazon seller?

The internet has significantly leveled the playing field for small firms. Anyone with an entrepreneurial drive may create their own internet business and reach a global audience of prospective clients.

However, finding things to sell is one of the most challenging tasks for internet businesses.

Most people associate selling on Amazon with stockpiling stuff and becoming full-fledged merchants. But what if you don’t have the money or the room to invest in inventory? What if you want to test the waters before plunging in?

There are various ways to sell on Amazon without having to stock a single item. We’ll walk you through the procedures you’ll need to do to start selling on Amazon without keeping stock.

So, whether you’re just getting started or searching for new methods to expand your business, keep reading to learn everything there is to know about selling on Amazon without inventory.

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How to Sell on Amazon Without Inventory?

Anyone who has ever sold something online knows several fulfillment methods are available. Dropshipping and Amazon FBA are two of the most popular (fulfilled by Amazon).

Both offer advantages and disadvantages, but which is best for you? Let us investigate more.

#1. Fulfillment by Amazon (FBA)

Fulfillment by Amazon, usually known as FBA, is one of the most popular ways to sell things on Amazon. Users may sell items through FBA by sending them straight to Amazon warehouses.

Once the items arrive safely, Amazon handles everything else, from warehouse storage and organization to shipping logistics and delivery confirmations.

Related: Does Walmart Sell Dry Ice In Stores?

Advantages of FBA

Using FBA offers several benefits as well as downsides. Among the most significant advantages of adopting Fulfillment by Amazon are:

  • The option to deliver items directly to Amazon avoids the warehouse space requirement.
  • Increasing the visibility of your articles by utilizing Amazon’s renowned
  • 24/7 customer service now from Amazon
  • Access to one of the world’s largest fulfillment networks
  • A complete fulfillment and shipping solution that frees you your time to focus on other elements of your business.
  • Flexible solutions that allow you to work at your own pace, even if you are new to any aspect of eCommerce selling.

Disadvantages of FBA

While there are several advantages to using FBA, there are also disadvantages, which include:

  • Fees for referrals and commissions on individual sales
  • Due to the lack of warnings when inventory is low, you must manually keep track of things in stock.
  • Storage costs might mount up, depending on the products you store vs. your selling rate and profit margin.
  • Pricing and fees are difficult to regulate since relevant markets often determine them.

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Getting Started on FBA

Starting with FBA is straightforward and does not need considerable training or preparation. To begin, you must fulfill the following tasks:

  • Create an Amazon seller account. By visiting this page, you may discover more about selling on Amazon and the different fees or monthly payments you may be required to pay depending on the platform you want to utilize.
  • Create an FBA account using Amazon’s seller account site.
  • Make the product(s) listings and indicate the type of FBA inventory you want to deliver straight to an Amazon warehouse.
  • Follow Amazon’s packaging requirements to prepare your purchases. Amazon FBA shipping prices and alternatives are compared. You may also look at Amazon’s current routing and shipping requirements list to confirm the procedures you need to perform based on your products and location.

#2. Dropship on Amazon

Dropshipping is another common approach to selling things online without having to manage inventory, and it has been around for years, even before Amazon. It is an excellent way to sell on Amazon without inventory.

Dropshipping on Amazon entails promoting and selling items you do not keep or manage. When you sell things through drop shipping, you are often responsible for advertising and selling the products.

Your choice dropshipping supplier will always assist with order fulfillment and inventory management.

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Advantages of Dropshipping

Dropshipping has several advantages that make it a desirable business strategy, including:

  • Low to no beginning costs: Using a dropshipping service to sell is one of the cheapest eCommerce methods to start selling things for a profit.
  • Test items more quickly: This approach of testing the feasibility of items is far faster than producing your own products and stockpiling too much inventory.
  • Learn something new: Learn more about your online audience and the demographics you’re attempting to attract by selling a range of dropshipping items while gathering real-time data and analytics.

Disadvantages of Dropshipping

Some disadvantages of utilizing Amazon dropshipping may include the following:

  • Lack of versatility: Because you are bound to the goods of another manufacturer, you will not have much flexibility in how you develop your items.
  • There is no assurance that the items on a dropshipping website will succeed or pleasure clients.
  • The dropshipping industry is extremely competitive.

Dropshipping involves the ability to choose the correct niche, investigate existing rivals, and choose a dropshipping source you can trust and rely on.

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#3. Third-Party Logistics (3PL) Service Providers

If you are unable to locate an appropriate Amazon no-product platform or are looking for alternatives, try hiring a third-party logistics (3PL) provider.

A third-party logistics (3PL) service or company assists eCommerce professionals with inventory management. A 3PL solution, as opposed to Amazon or a dropshipping service, provides a third-party, all-inclusive warehouse storage and delivery solution. You can sell on Amazon without inventory using this method.

A 3PL service comprises the following:

  • Inventory control and warehouse storage
  • Receiving, collecting, and examining
  • Services for Pick and Pack
  • LTL and FTL shipping options
  • Logistics in reverse

Benefits of 3PL

  • more managerial autonomy
  • Save time to concentrate on other aspects of your business.
  • Scalable

Related: Does Walgreens Sell Alcohol in My Location | Best Answers

Disadvantages of 3PL

  • Control over physical inventories is lacking.
  • Product distribution is less flexible.
  • Inability to constantly monitor quality
  • It is possible that the initial expenditures will be high.

To begin using a 3PL solution, you must first study the audience you want to reach as well as trustworthy third-party logistics providers in your region.

Before selecting your desired 3PL system, consider the volume of business you anticipate producing as well as the features and shipping services supplied.

#4. Sell Digital Products on Amazon

Selling your own digital items is another method to generate money on Amazon without having any inventory.

What are Digital Products?

Digital items can range from downloadable audiobooks to digital copies of your books and print-on-demand products like selling t-shirts or art prints on Amazon.

Related: Does Walgreens Sell Money Orders | What Locations Have Money Order in 2022

Advantages of Selling Digital Products

  • Startup expenditures and investments are minimal to non-existent.
  • Anyone, even those with little to no eCommerce knowledge, may use it.
  • Possibility of setting your own price and profit margins

Disadvantages of Selling Digital Products

  • Some markets are extremely competitive and highly saturated.
  • When first entering the market, it is difficult to get awareness and reach.
  • There is no guarantee of sales or success.
  • Expensive commission fees

Selling digital items on Amazon as a conventional seller is viable if you want to sell uploaded books, audiobooks, or documents.

If you want to sell print-on-demand (POD) items like t-shirts or coffee mugs, you must first sign up with a third-party POD provider.

After that, you may connect your POD service to your Amazon account to market your print-on-demand items.

FAQs

Can I Sell on Amazon if I Don’t Have a Product?

There are no products? Not a problem! As an e-commerce entrepreneur, you may sign up for Amazon FBA or dropshipping and be on your way to new business experiences.

Can I Buy for Item In a Store and Sell Amazon?

Yes, it is perfectly legal to purchase a thing at a store and resale it on Amazon. There is no requirement for a permit or to be an authorized reseller.

When you buy something, it becomes yours, and you can resell it if you want.

What Categories Can a Beginner Sell on Amazon?

  • Appliances (27% of sellers say they have beginner seller experience)
  • Books.
  • Video Games.
  • Electronics.
  • Toys & Games.

How Much Does a Beginner Amazon FBA Seller Make?

Profit margins of 16-50% were recorded by 52% of merchants, implying an annual profit of $2000-6000.

If you have a healthy 30% profit margin for your Amazon FBA business and aim for at least $1000 in monthly sales, you can easily make $3600 each year.

Conclusion

Knowing how to sell on Amazon without inventory or with an Amazon platform built in might help you select which road to go for your future endeavor.

Using a drop shipping solution or an FBA provider is one way to develop a six-figure Amazon business without inventory.

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