How to Sell on Amazon Without Inventory: The Ultimate Beginner’s Guide

  • September 25, 2023
  • Amazon FBA , E-Commerce , Entrepreneurship

Picture this: A thriving online store on the eCommerce giant, Amazon , buzzing with sales but no warehouse in sight. No mountains of inventory to manage or shipping requirements to fret over.

Sound too good to be true? Well, it’s not.

You might ask yourself – “How is that even possible?” . That’s where I was just a year ago until I discovered the secret sauce – learning how to sell on Amazon without inventory.

Intrigued yet?

This isn’t some abstract concept or unattainable goal; it’s a business model leveraged by countless sellers who have turned their focus toward selling products without holding physical stock. This approach lets you tap into Amazon FBA and third-party logistics while sidestepping storage fees and reducing financial risk.

In this article, we’ll break down how to sell on Amazon without inventory by finding your niche, selecting the right model and scaling to profitability.

Table of Contents

Understanding the Business Model of Selling on Amazon without Inventory

For those looking to capitalize on the lucrative potential of Amazon’s marketplace without holding inventory, you’ve come to the right spot. Many entrepreneurs are attracted by this business model as it presents a unique opportunity for profit and scalability of ecommerce sales.

The traditional method of selling products online offers an average gross profit margin of 41.54% . This includes the need to purchase inventory before selling.

But what if we could do better?

The idea is simple: Instead of stocking up goods in your own warehouse or home, let’s use fulfillment solutions provided by Amazon FBM (Fulfillment by Merchant) , Amazon FBA (Fulfillment by Amazon), or even Third-party logistics (3PL).

Various Approaches to Inventory-Free Selling on Amazon

Two primary strategies exist for selling products on Amazon without maintaining an inventory: dropshipping and Amazon’s Fulfillment by Amazon (FBA) service. Both options remove the necessity for sellers to manage physical goods, streamlining business operations and reducing costs. Savvy Amazon sellers will take advantage of both strategies when needed.

Understanding Dropshipping:

A No-Inventory Model Dropshipping is a unique business approach where the seller doesn’t keep any stock on hand. When a customer buys an item, the seller procures it from a third-party vendor, who then ships it directly to the customer. This model minimizes upfront investment and mitigates the risks associated with unsold stock.

In this model, when a customer makes a purchase from your store on amazon.com instead of keeping goods in stock yourself – you forward the order details directly onto your supplier who ships it out directly to the end consumer under your brand name.This means that while technically there’s no ‘inventory’ held by you – every sale made results in profit!

However, dropshipping demands meticulous oversight. Sellers must collaborate with trustworthy vendors who can consistently deliver quality products in a timely manner, as the third-party vendors are responsible for fulfilling orders. Additionally, sellers must keep an eye on the vendor’s inventory levels to prevent advertising products that are unavailable.

Amazon FBA:

Letting Amazon Manage Your Stock Fulfillment by Amazon, commonly known as FBA, offers an alternative way to sell without maintaining an inventory. In this model, sellers send their products to Amazon’s fulfillment centers for storage until they are sold. When an order is placed, Amazon takes care of picking, packing, and shipping the product, as well as managing customer service and returns.

Though FBA does necessitate you to purchase inventory upfront, it alleviates many traditional inventory-related challenges. Sellers are freed from concerns about storage, packaging, shipping, and returns, as Amazon handles these elements.

Furthermore, FBA grants sellers access to Amazon’s robust logistics infrastructure and expedited shipping options, such as Amazon Prime. Having FBA eliminates the need for inventory management on your part. This can also be a compelling advantage for attracting customers. However, sellers should note that FBA comes with associated fees, like storage and fulfillment charges, which must be considered when calculating pricing and profitability.

Finding Your Niche within the Online Marketplace

Before starting your journey as an online seller, identifying what kind of products you want to offer is essential. These could range from physical items that require order fulfillment through a third-party provider, or sell digital products requiring no storage space at all.

Regardless of what path you choose; however, there’s one thing they have in common – none requires holding physical inventory (at least in your own home).

Getting Started with Selling on Amazon without Inventory

Ecommerce selling can be a lucrative venture, especially when you start selling on Amazon. The beauty of this business model is that it allows for inventory-free selling – meaning no need to manage stock physically.

But how do you go about setting up an Amazon seller account ? Navigate to the site and select ‘Begin Selling.’ Input essential details about your enterprise. Once you have finished filling in the necessary information, choose between FBA (Amazon’s fulfillment service) or FBM (fulfillment by merchant).

Managing Inventory Without Physical Stock

In order not to handle physical stock yourself but still fulfill customer orders efficiently, consider using third-party logistics solutions. These providers store your goods at their fulfillment centers and take care of shipping requirements once a customer places an order through your product listing.

This method has become increasingly popular among small eCommerce businesses because space is expensive. A warehouse may not fit into every startup’s budget – according to industry data; most are looking for ways around investing heavily in storage fees associated with large-scale operations.

A viable solution? Using inventory management software. This digital tool helps sellers ship directly from suppliers or manufacturers straight into the hands of customers – reducing overhead costs and streamlining your shipping process significantly.

If done right, taking advantage of these resources could make sure there’s minimal disruption while transitioning towards inventory-free methods like dropshipping or print-on-demand services. Remember: effective use requires proper understanding and strategic implementation—otherwise profits might get lost amidst confusion surrounding new systems’ complexities.

So let’s break down what each of these options entails.

With FBA, you send products to Amazon’s fulfillment centers. They handle logistics including storage, packaging and shipping on your behalf. All of the inventory management is done by them. As a seller, all you need to do is manage the backend in your Amazon seller account.

In contrast, with FBM you manage inventory yourself – whether that means holding physical stock or using a third-party inventory solution like dropshipping. It requires more hands-on involvement but gives sellers control over every aspect of their business – from customer service to order fulfillment.

Leveraging Amazon’s Fulfillment by Amazon (FBA) Program

For sellers looking to operate their Amazon store without managing their own inventory, the FBA program can be a game-changer. But how does it work and what are its benefits? Let’s dive deeper into the details.

The Role of Fulfillment Centers in FBA

Amazon fulfillment centers play a crucial role in ecommerce selling. When you use Amazon’s FBA program, your products go straight from your supplier to Amazon fulfillment centers . This process eliminates any need for personal warehouse space or logistics management on your part.

At these cutting-edge warehouses, all items are carefully put away, prepared for shipment and dispatched right to purchasers when orders come in.

Profit Margins with FBA

We’ve established that the ease of operation is there but let’s talk money now – profit margins specifically. With any online marketplace venture comes costs such as storage fees at fulfillment centers. This is no different with an Amazon business. Make sure to check out the Amazon FBA fees and understand your margins before diving in.

You might wonder if using third-party services like these would eat away at your profits but fear not. With careful product selection and pricing strategy based on competitive analysis along with effective marketing strategies; maintaining healthy profit margins while leveraging Amazon’s robust infrastructure becomes feasible.

This comprehensive service also takes care of customer service inquiries allowing you to focus more on expanding your product range or enhancing marketing efforts thus contributing towards increasing your customer base and ultimately profit margins.

So, by leveraging Amazon’s FBA program, you’re not only setting up an inventory-free selling model but also creating a more seamless buying experience for your customers. It’s all about working smarter, not harder.

Exploring Fulfillment by Merchant (FBM) on Amazon

If you’re keen to sell products on Amazon without having to manage inventory, the FBM model is also a strategy worth considering. In contrast with Fulfillment By Amazon (FBA), where Amazon takes care of everything from storage to shipping, FBM puts you in control. This can be a plus for those looking for more control over their Amazon business.

How FBM Works for Selling Without Inventory

The heart of this business model lies in managing your product listings and customer inquiries while letting third-party logistics handle physical inventory and order fulfillment. This selling method can be particularly advantageous if you have unique shipping requirements or are offering digital products that don’t require physical handling.

When an individual places an order via your online store on the eCommerce behemoth’s platform, instead of having products sent directly from one of Amazon’s fulfillment centers, you send them using either your own resources or a designated third-party warehouse. This means less financial risk associated with holding physical stock but more involvement needed regarding customer service.

If you’re dropshipping, then the supplier would fulfill the order when the order comes in. You would just have to ensure that your Amazon seller account is setup properly so that tracking is updated when orders are shipped.

Tackling Storage and Shipping as an FBM Seller

The challenge here comes down to managing warehouse space efficiently and meeting Amazon’s strict standards for shipping products promptly. Because you’re not relying on Amazon’s warehouses to ship, you need to ensure your vendor or 3PL is shipping items on time.

Remember: high levels of customer satisfaction lead not only to positive reviews but also boost marketing strategies by word-of-mouth recommendation – so no cutting corners.

A variety of third-party inventory solutions exist that help take care off these aspects though; some 3PLs offer dedicated services tailored specifically towards Amazon’s FBM program needs .

Navigating Customer Inquiries With Confidence

Understandably, stepping into direct customer service might seem daunting. But, with the right attitude and resources at hand, managing customer inquiries effectively can become second nature. Use your knowledge about your products to provide a personalized shopping experience that even Amazon Prime can’t match.

Remember, even though FBM products don’t get Amazon Prime’s shipping perks, a top-notch third-party logistics provider and outstanding customer service can still keep your gross profit margin healthy.

Utilizing Third-Party Fulfillment Centers for Inventory-Free Selling

Selling on Amazon without holding physical inventory is a strategic move. Third-party fulfillment centers are employed to take care of storage, shipping and customer service requirements in an inventory-free selling model. So let’s explore these services.

The Role of 3PL Providers in Inventory-Free Selling

Third-party logistics (3PL) providers play a critical role in this selling method. They take care of storing your products at their warehouse space, packaging them when orders come through the online marketplace, and then shipping those products out.

This setup helps sellers ship goods directly from the supplier or manufacturer to customers with minimal involvement. And yes, it can be done. By managing inventory this way, you get rid of the financial risk associated with buying stock upfront and maintaining storage facilities.

In addition to handling logistics like packing and dispatching orders, most 3PLs offer services that help manage customer inquiries as well as returns – both key aspects for achieving high levels of customer satisfaction.

A crucial aspect is choosing the right provider though; one who offers robust solutions fitting your specific business requirements while keeping profit margins healthy by offering competitive rates. The choice often comes down between two major models: Amazon FBA (Fulfillment by Amazon), where Amazon handles all fulfillment duties including storage fees or FBM (Fulfillment by Merchant), which lets sellers manage order fulfillment using either their own resources or other third-party solutions.

FBA vs Third-Party Logistics Providers

FBA seems appealing because Amazon takes care of everything – even allows you access to Prime customers – but there are some drawbacks too such as higher costs compared to typical 3PL providers plus strict rules around packaging & shipping products.

In contrast, 3PLs offer greater freedom of choice and may be more economical. Plus, they can work with multiple sales channels – not just Amazon. So if you’re planning to sell on Shopify or eBay, a 3PL could be a better fit for you.

Here’s the real deal: selling without inventory unlocks fresh possibilities for go-getters diving into e-commerce, minus the baggage.

Selling Digital Products on Amazon without Inventory

If you’re serious about selling on Amazon without inventory, it may be worthwhile to consider selling digital product. With no physical materials or shipping required, digital products offer high-profit margins, making them an attractive option for sellers.

On Amazon, digital products come in many forms – from eBooks to software applications, music files to graphics designs – your options are extensive. This variety gives sellers the opportunity to cater to different customer needs while also managing their inventory more efficiently… Because you have none.

Selling digital products can be extremely lucrative because scaling is much easier to do. You just need to increase your reach or advertising spend and that’s when you start printing money.

Digital Product Listings: Your Gateway To Success

Your product listing is like your shop window; make sure it grabs attention. Be clear in describing what your digital product does and how customers will benefit from using it. Remember that stellar customer service starts with providing all necessary information upfront so potential buyers know exactly what they’re getting before they click ‘Add To Cart’.

The goal here isn’t just about attracting as many eyes as possible; it’s about converting those views into sales by clearly communicating value. After all, satisfied customers can help grow your business through positive reviews and word-of-mouth referrals.

Fulfilling Orders Without Holding Physical Stock

A significant advantage when selling digital goods is that order fulfillment becomes a breeze. There’s no need for warehouse space or third-party logistics providers since everything happens virtually – say goodbye to storage fees.

Once a customer places an order, delivery occurs almost instantly via download links or email attachments. It means not only quicker deliveries but also less financial risk associated with unsold stock or returns.

Maintaining Customer Satisfaction in The Digital Sphere

Customer satisfaction is a crucial factor for any successful business model. In the world of digital products, this means providing excellent after-sales service and handling customer inquiries promptly.

Your buyers may need help with downloads or face issues using your product – be there to assist them. Timely responses to their questions will enhance their buying experience, leading to repeat purchases and higher profit margins in the long run.

Basically, Amazon gives you a great chance to sell digital products without needing any inventory. Pretty cool, right?

Best Practices for Selling on Amazon without Inventory

The secret sauce to maximizing success when selling on Amazon without inventory lies in a handful of best practices. Let’s not beat around the bush and get straight into it.

Optimizing Product Listings

A top-notch product listing is your golden ticket. Ensure your product listing has plenty of applicable key phrases, superb visuals, and in-depth explanations that address any queries a purchaser could have about the item. The key here is making your product as enticing as possible while keeping things honest and transparent.

Amazon’s marketing tools, such as Sponsored Products or Lightning Deals, can give you an extra boost in visibility.

Furthermore, you should be using tools like Helium 10 to optimize your listing for the relevant search terms and keywords. This way, customers can actually find what you’re selling.

Bottom Line

Using a third-party fulfillment center, such as Amazon’s FBA, can be your best bet when selling without inventory. They handle storage, packing, shipping – they basically do all the heavy lifting while you focus on growing your business.

Remember: Success isn’t always about having the most extensive inventory; it’s about smart strategies that maximize profits and minimize hassle. Selling on Amazon without holding physical stock? Piece of cake.

By now, you’ve seen the potential of learning how to sell on Amazon without inventory. You’re armed with the knowledge about FBA and FBM methods and should be ready to leap into action.

You know third-party fulfillment centers can be your secret weapon. They handle logistics so you don’t have to stress over storage or shipping products. Remember this – less physical inventory means reduced financial risk!

Digital products? High-profit margins await there because no physical materials are involved. A great path for those eager for a hands-off approach.

The keys here: optimize product listings, manage restocks efficiently and keep an eye out on Amazon’s ever-changing policies. Stay patient; success is within reach.

A new era in selling awaits! So gear up and dive headfirst into profitable eCommerce waters sans any warehouse woes!

FAQs about Selling On Amazon Without Inventory

What is the best way to sell on amazon without inventory.

Fulfillment by Amazon (FBA) and dropshipping are popular methods because they don’t require you to handle physical products.

Can I start selling on Amazon with no money?

You will need some initial capital for things like setting up your store, purchasing or producing your first products, and marketing. However, using models like dropshipping can significantly reduce these costs.

Do I need a business license to sell on Amazon?

No, it’s not entirely necessary. You can sell on Amazon without formally registering a business. Although Amazon doesn’t insist on business registration, your local jurisdiction might have requirements for operating an online enterprise.

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amazon business model no inventory

A Beginner’s Guide to Selling on Amazon Without Inventory

selling on amazon without inventory

Whether you’re selling beauty and personal care products or clothing, you need to have products on hand to cater to customers. Right? 

Well, that’s not exactly the case when you’re selling on Amazon. 

The thing is, you can sell on Amazon even without inventory. Now, this might seem like a far-fetched idea, but it’s not impossible. If you’re an Amazon seller, you have several options for selling on Amazon without any inventory. This article sheds some light on how you can leverage this business model, the benefits of selling on Amazon without inventory, and ways to make this practice sustainable for long-term business growth. 

5 Options for Selling on Amazon Without Inventory

How does selling on Amazon without inventory work? 

When a customer buys something from your Amazon store, you’ll purchase the product from a partner, such as a supplier or manufacturer. Depending on your agreement, the same partner can handle fulfillment processes like storage or shipping. 

We’re sharing five business models you can follow to sell products on Amazon even without any inventory.

Dropshipping

With dropshipping , sellers can sell on Amazon without inventory. When a customer makes an order from your store, you’ll send this order to a third-party company (supplier or manufacturer), who will then take care of aspects like production, packaging, and shipping. In dropshipping, the seller acts as the middleman who facilitates the transaction between the customer and the supplier or manufacturer. 

While Amazon permits dropshipping , it’s important for sellers to follow the platform’s dropshipping policy. Failing to comply with Amazon’s guidelines may result in your selling privileges being revoked. 

Pros of Dropshipping

Lower overhead costs.

  • No need to invest heavily in inventory because you won’t have to purchase products beforehand
  • Dropshipping is relatively easy to start since you won’t have to deal with physical inventory, storage, shipping, and managing stock levels
  • You can run a business anywhere, as long as you have an internet connection
  • Greater flexibility when it comes to what products you can sell, making it an easily scalable solution

Cons of Dropshipping

  • Because the dropshipping space is highly competitive, you may be faced with challenges like lower profit margins 
  • Dropshippers may come across common problems like issues with inventory, higher shipping costs, especially if your products come from different suppliers or manufacturers, and mistakes made by the third-party company, such as shipping the wrong item or manufacturing a low-quality product.
  • You’ll have limited control over customization options, branding, and product quality

Print-On-Demand (POD)

As a thriving industry, POD is estimated to be worth over $60 billion by 2032 . It’s a type of business model where products are made when the seller receives an order. This model allows for greater customization and flexibility for both the seller and the buyer because of several reasons:

  • Niche customers can have access to unique designs for items like accessories or clothing
  • Content creators who want to start a business can use POD to bolster their branding by selling branded merchandise
  • Entrepreneurs have the opportunity to develop custom products without inventory 
  • For sellers, your supplier will take care of everything, from printing to shipping

Print-on-Demand Pros

  • Amazon sellers can create and sell products quickly without handling physical inventory.
  • The supplier will usually cover shipping and fulfillment.
  • POD involves lower risk, given that you won’t hold any inventory. You can quickly add or remove certain products or designs and test out new design ideas. 

Print-on-Demand Cons

  • If you’re only doing a small batch, the cost of each item will likely be higher.
  • You have no control over storage and shipping.
  • The scope and quality of POD products will vary, depending on the POD service provider you’ll be working with. You also have to consider factors like customization options and size availability. 

Popular Print-on-Demand Companies

If you’re planning to go the POD route to sell on Amazon without inventory, here are some of the most popular service providers worth considering:

Amazon Merch on Demand

Amazon Merch on Demand

Amazon’s Merch on Demand service is a good alternative to POD companies. With Amazon Merch on Demand, sellers, such as independent designers and even global brands like Disney and Marvel, can showcase their custom designs to Amazon shoppers. All you need to do is come up with a design and let Amazon handle the rest. 

Here’s a rundown of how Amazon Merch on Demand works:

  • Create original designs and upload them to your Amazon Merch on Demand account.
  • Pick a product type, add a product description, and suggest a list price for your items.
  • Amazon will create a product page on the platform and print products that are sold.
  • Aside from printing, Amazon will also handle shipping and customer service. 
  • Amazon Merch on Demand also provides users with analysis tools so they can monitor the performance of their designs. 

The great thing about Amazon Merch on Demand is that it caters to a variety of items, including t-shirts, totes, and even pop sockets. Plus, you can start your business with zero inventory and earn royalties every time a product is sold. This is a great option for content creators or influencers who want to bolster their branding and boost their audience engagement. Moreover, products under Merch on Demand are eligible for Prime Shipping. 

Note that when it comes to your design submission, these will still have to follow Amazon’s content policy. You can check out the detailed guide for Amazon Merch on Demand here . 

Digital Products

You can find an array of digital products being sold on Amazon, such as eBooks, apps, audiobooks, and videos. For instance, if you’re writing books, Amazon lets you do any of the following:

  • Sell physical copies of your book
  • Use Kindle Direct Publishing (KDP)

Amazon offers robust support for sellers looking to sell digital products on the platform. If you’re an artist who wants to sell your unique works, you can use Amazon Merch on Demand. For musicians, you can use TuneCore, which lets you upload your songs and make them available on channels like Amazon, iTunes, and more. For developers, the Amazon App Store lets you make your app or game available to various Amazon devices. If you’re into making audiobooks, Amazon has Audible, which is a membership service that gives customers access to an extensive catalog of titles, including podcasts and Audible Originals. For video creators or producers, Amazon has Prime Video Direct, which offers flexibility for creators and helps them expand their reach. 

Pros of Selling Digital Products on Amazon

  • The opportunity to grow your audience base to a global scale
  • No need to handle physical inventory 
  • Amazon takes care of the distribution of digital products
  • Selling digital products on Amazon is scalable, allowing you to add or remove products you want to sell depending on factors like their performance and audience demand

Cons of Selling Digital Products on Amazon

  • Different digital markets will have varying levels of competition
  • You may need to pay additional fees like commission fees
  • Potential challenges in marketing your digital products, which can affect its visibility and sales performance

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA)

With Amazon FBA, sellers can outsource order fulfillment services to Amazon. This means that Amazon will take care of the storage, packing, shipping, and delivery of your products. To start selling on Amazon via FBA, you need to sign up for a selling plan. From there, you need to list your products and then prepare and ship your inventory to Amazon fulfillment centers or warehouses. 

Pros of FBA

  • Access to Amazon’s global network of warehouses
  • FBA orders are eligible for Prime Shipping
  • Using FBA gives you more time to focus on growing your business through product development and offering enhanced customer experiences 
  • Helps sellers scale their business and save time
  • Provides sellers with an end-to-end solution for processes like storage and returns
  • Access to discounted shipping rates
  • Round-the-clock customer service
  • Opportunity to win the Buy Box

Cons of FBA

  • Numerous fees , such as fulfillment costs, storage costs, and returns processing, can quickly add up
  • Your branding opportunities will likely be limited, given that Amazon takes care of packing and shipping
  • Sellers may encounter more returns due in part to the platform’s open return policy

If you’re looking for more ways to win the Buy Box, Threecolts offers several solutions to help you out. Bindwise is a powerful monitoring tool designed for Amazon sellers. With Bindwise, you can monitor your listings and protect them from hijackers. It also alerts you on potential issues that can lead to problems like Buy Box losses. Meanwhile, SmartRepricer is a handy tool that automates your Amazon pricing so you can gain a competitive edge and have more opportunities to win the Buy Box. 

Fulfillment by Merchant (FBM) or Third-Party Logistics 

Fulfillment by Merchant (FBM) or Third-Party Logistics

Amazon’s Merchant Fulfilled Network (MFN) is a program that lets sellers list their products on Amazon. With MFN or FBM, the seller also manages everything in between independently, from storage to customer support. To use MFN/FBM, you need to set up your seller account (either an Individual plan or a Professional plan) and choose a fulfillment option that best suits your needs. If you go with MFN/FBM, you can handle order fulfillment in-house. Alternatively, you can use Amazon FBA, enlist a third-party logistics service provider, or combine all three fulfillment options. 

When it comes to third-party logistics providers (3PL), these companies will handle supply chain-related processes, which can include storage, packing, and shipping. In some cases, 3PL providers may also handle customer service. The scope of their services will likely depend on your arrangement with them.

Pros of FBM

  • Greater control and flexibility over order fulfillment aspects like inventory management and quality control
  • If you’re handling fulfillment in-house, you can save on fulfillment fees
  • Greater customization when it comes to packaging and branding
  • Sellers are not dependent on third-party service providers, especially if you handle the order fulfillment process in-house

Cons of FBM

  • MFN/FBM is a labor-intensive process since you’ll be handling the entirety of the fulfillment process
  • You may find it difficult to scale your business faster because you’ll then need to get a bigger space to handle storage, plus more staff to accommodate your growth
  • Your reach may be limited, especially if you’re not equipped to handle international orders
  • You will be responsible for handling customer service, including inquiries and returns

Why Sell on Amazon Without Inventory?

Selling on Amazon without any inventory offers several benefits for sellers. Because you don’t need to purchase and store products, you’ll have a lower barrier to entry. Here are three key benefits of selling on Amazon without inventory.

Minimal risk

Selling on Amazon without inventory entails a reduced risk when it comes to overstocking or understocking certain products. And because your money isn’t exclusively tied to your products, you’ll be able to pivot your business quickly in case a product doesn’t sell well or if certain products have higher demands.

Doing business on Amazon without inventory means you won’t need to have a huge capital to purchase, store, and ship products. Having no inventory also lets you start your Amazon business even with limited resources. Plus, because you won’t need to manage physical inventory, you’ll save time and be able to focus more on how you can grow your business and market your products. 

Scalable   

Selling on Amazon with no inventory can be a scalable solution for many entrepreneurs. For example, if you’re using Amazon FBA, you can quickly scale your business because you’ll be able to expand your product offerings without being limited by having to manage physical inventory. Furthermore, selling without inventory makes it easier for you to run your business from home or from an office. Lastly, by outsourcing storage and shipping, it’ll be easier for you to manage orders. 

Despite the numerous benefits of selling on Amazon without inventory, it can give rise to unique challenges, such as:

  • Being dependent on suppliers, manufacturers, or third-party logistics (3PL)
  • Having limited control over your products—especially when it comes to their quality and packaging, as well as how they’re stored and shipped—can affect customers and the experiences they’ll have with your business.
  • Potentially having lower profit margins because of increased competition, especially in the case of Amazon FBA, and having to pay several different fees to suppliers or 3PLs 
  • Complying with Amazon’s policies for different business models. For example, if you’re planning to go the dropshipping route, then you’ll have to follow a different set of guidelines from Amazon’s policies when it comes to using the Amazon Fulfilled by Merchant (FBM) model .

Best Practices for Selling on Amazon Without Inventory

We’re sharing a few helpful tips on how you can start selling on Amazon without inventory. Following these best practices can help you optimize your business and equip you for success.

  • Find the right products to sell : Having the right products plays an important role in the success of your Amazon business. If you’re planning to sell on Amazon without inventory, it’s best to thoroughly research potentially profitable products to sell, assess their demand, and factor in components like your profit margins and overhead costs. Make sure that you choose products that match your business goals and align with your branding. You can start your research by looking at top or trending products on Amazon. If you want to get estimates on your Amazon sales or find profitable products to sell , you can use tools like Jungle Scout’s Amazon Sales Estimator or Opportunity Finder. Threecolts’ TacticalArbitrage is also a great tool for sourcing profitable products to sell on the platform. 
  • Work with reliable partners: The partners you work with will also influence your Amazon business’s growth and success, which is why it’s crucial that you find reliable suppliers, manufacturers, or 3PLs. Create a list of potential partners, check their track record, and see if they can maintain communication and transparency. Only work with partners who can offer high-quality products. Otherwise, you can potentially put your reputation and customer experiences at risk. 
  • Offer unparalleled customer service: Aside from ensuring the quality of your goods even without physical inventory, you also need to stay on top of your customer service. Make sure to promptly and professionally respond to queries or concerns. Make your customer service easily accessible to your patrons by providing them with multiple communication channels, such as social media and email.
  • Remember to optimize your listings : Listing optimization is vital for search visibility. Plus, it makes it easier for customers to find your products. Aside from writing engaging descriptions, incorporate SEO and use high-quality images for your products. Ask customers to leave a review or give you a good rating. Keep in mind that you must still follow Amazon’s listing guidelines and best practices for listing quality.
  • Monitor your performance: Use data to your advantage. Review all your data, such as sales data and customer reviews, to see which areas are working well and which ones need to be improved. You can also test out different aspects of your business, such as rolling out new products or product descriptions, to see which one performs better. Lastly, once you’ve analyzed your data, use your insights to tweak your strategy so your business remains flexible and agile. 

Growing Your Amazon Business Without Inventory

While it might seem impossible, you can start selling on Amazon without any inventory. Whether you prefer to dropship your products or use Amazon FBA, it’s best to do your due diligence first and learn about the advantages and drawbacks of each option. Furthermore, while selling on Amazon without inventory seems like a viable solution for entrepreneurs, it may not always be the best choice for your business. Despite its benefits, you’ll still need to assess its drawbacks to see if selling on Amazon without inventory will help you achieve your business goals. 

Whether you’re planning to sell on Amazon without inventory or going the traditional selling route with physical inventory, using a reliable marketplace management platform like Threecolts can help you scale your Amazon business. From answering eCommerce tickets faster to gaining visibility on your profit and loss, Threecolts offers an array of applications to help you customize your online business. Explore the different solutions offered by Threecolts today.

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A Guide on How to Sell on Amazon Without Inventory

Getting started as an FBA Amazon seller can seem daunting at first. For those who do not have an established e-commerce business but want to enter the world of selling, the question is: how to sell on Amazon without holding inventory in-house? The good news is in today's world of online retail, it's actually less stressful than you may have thought to start your own inventory-free home based business.  Today, we'll focus on the main methods: FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant).

Fortunately, the Amazon FBA platform is set up to help an Amazon seller at any point in their business journey. There are ways to sell on Amazon without having any in-house stock, plus there are several tools and reports to guide you on what selling option might work best, the pros and cons for each, and how to source and price products for your Amazon store.

In this article, we outline several options for operating your Amazon business without holding inventory in-house. Continue reading to understand how to sell products online without inventory to reach your e-commerce business goals.

Comparing FBA vs. FBM 

In the world of e-commerce, there are ways to build a brand without holding any stock yourself. Amazon sellers have the option of being an FBA seller (Fulfillment by Amazon) or a FMB seller (Fulfillment by Merchant). 

Amazon FBA involves the individual seller sending products directly to Amazon’s warehouse. These products can be sent from the seller’s home, storage source, or directly from their chosen supplier. Amazon then manages all storage, packaging, shipping, and customer support. 

Alternatively, FBM sellers list their products on Amazon but manage all logistics, including storage, shipping, and customer support themselves. There are certainly pros and cons for each of these options. However, once a company begins to grow, outsourcing logistics to a third-party allows you to focus more time on product sourcing, marketing, and growing your business.

How FBM Works

In order to scale and establish a smooth operational workflow for your ecommerce store, there are two ways to handle shipping and handling as a FBM seller. The first is by working with a third-party fulfillment center and the second is choosing to dropship products instead. 

Navigating Third-Party Fulfillment Centers

Third-party fulfillment centers offer outsourced product management programs where a company stores your stock, packs orders, and handles the shipping, tracking, and customer service process. This option is best for sellers who are not selling merchandise from their home, or sellers who have expanded beyond their home operations and require additional help to manage high order volumes. 

Although there are several local and regional fulfilment centers to meet your needs, Amazon FBA is by far the most popular option, due to its brand notoriety, reliability, and in-depth resources. 

Pros and Cons of Third-Party Fulfillment Centers

Most companies benefit from selling products online with third-party fulfillment centers, particularly if they anticipate a high sales volume during a certain time of the year. Also, companies experiencing rapidly increasing year-over-year growth may find their current infrastructure isn’t able to keep up with demand and seek out a fulfillment center as a solution. Another benefit of using third-party fulfillment centers is that it limits the time sellers have to dedicate to logistics and frees it up to focus on other parts of growing an Amazon FBA business. 

The cons are that you’ll have to be ready to relinquish control to the fulfillment center, as they will be in charge of all logistics. It also takes an upfront investment to maintain storage and service costs. However, the pros well outweigh the cons when you’re in the position of growth and scaling your online business. Being able to sustain customer demand and a high quality of service is essential to your business, and is better maintained through Amazon FBA.

Navigating Dropshipping

Dropshipping allows you to fill customer orders when you don’t own or carry the product. When your store sells products online using this model, you purchase the item directly from a supplier and have it shipped directly to the customer. 

As the seller, you neither own the inventory nor store it, as with using a third-party fulfillment center, but rather purchase the product as needed to fulfill customer orders. Amazon allows you to dropship products, as long as certain criteria are met as per the terms of the seller agreement.

Essentially, you must always be identified as the seller of record for the products and remove all third-party seller/supplier information from any packaging or invoices that are sent to customers. Plus, it’s your responsibility as the dropshipper to accept and process any returns, an area that’s taken care of when choosing the fulfillment center route.

Pros and Cons of Dropshipping

Dropshipping offers several benefits. First, you can maintain lower overhead costs since you aren’t storing or shipping the products.  Second, the starting costs are low, since you don’t need to invest in facilities or buy inventory prior to selling.  Since you don't own or carry the physical product, this also means you won't be dealing with any excess inventory.

Dropshipping also allows you to sell through multiple sales channels including Amazon, your e-commerce website, or social media such as Facebook Marketplace to better reach your customer base. Also, because all transactions and logistics are handled online, it allows you to operate your business from virtually anywhere, giving you the flexibility and scalability to build a business at your own pace. 

On the other hand, cons include competition, fulfillment timeline, and inventory management. Since dropshipping is a low-cost investment, it’s also a popular option for many sellers who want to enter the e-commerce space. This competition can make it harder to source products, may force you to lower prices to stay competitive, and make it hard for shoppers to distinguish your merchandise from other sellers. 

Additionally, dropshipping doesn’t allow you control over your timeline in terms of when items will be selected, packaged, or shipped. There’s also lag on real-time updates on available stock, which can be discouraging for customers if your store is consistently out-of-stock or slow on delivery. 

How FBA Works

According to Jungle Scout’s 2021 State of the Seller Report, 92% of Amazon sellers use FBA, either selling through FBA alone or in combination with FBM. Only 9% of Amazon sellers rely solely on FBM.

Simply put, Amazon defines its FBA program as “you sell the item, we ship it.” The FBA program works by storing your products in Amazon fulfillment centers, where their associates then pick the items as they’re sold, pack and ship them, and provide any customer support necessary. 

Amazon FBA also helps sellers succeed through its various tools and perks, including fast, convenient shipping, global recognition of the  Amazon brand , and in-depth reporting. For sellers wanting a comprehensive solution for their e-commerce brands and access to Amazon Prime customers, FBA is the way to go.

How Amazon Fulfillment Centers Manage Amazon FBA Inventory

There are several methods that will assist you in finding the types of products your customers are most interested in and price them to be competitive with others online. Our  5 Best Tips for Sourcing FBA Inventory  blog post covers an in-depth look into how to build a successful inventory model through finding reliable suppliers and identifying product trends to maximize profits. It all starts with determining the best method of sourcing, which may include retail arbitrage, buying wholesale, and through an online marketplace.

Retail Arbitrage

Retail arbitrage involves buying products at discount from retail stores and reselling them on Amazon for a profit. With this method, sellers hunt clearance and liquidation sales where retail prices are dropped significantly on items that can then be sold for a profit. Though this process can be time-consuming, it is one of the more cost-effective methods of sourcing FBA inventory, because it doesn’t typically require buying in bulk. This is a good method for those first starting out in the Amazon FBA space to get an idea of the program and services work.

Buying Wholesale

Buying wholesale involves buying a large volume of products at a discounted price directly from the manufacturer. The key is to find reliable suppliers you can build long-term relationships with to create a steady flow of supply and demand for your customers. Rather than having large order amounts directly shipped to your home or office, you can have them shipped and stored at an Amazon fulfillment center, where all logistics are handled. 

When using this method, it’s important to integrate Amazon inventory management tools to track sales and forecast product popularity to make purchasing decisions. In addition to the built-in tools available through Amazon FBA, there are other online tools that can integrate with your sales channels, such as Sellics.com, JungleScout.com, and InventoryLab.com. Each of these allow you to see the balance of goods coming and going out during any given time period.

Online Marketplaces

Another method of sourcing FBA inventory is through online marketplaces, like Alibaba.com. As with buying wholesale, this method involves buying in bulk at discounted prices from online marketplaces overseas. Some of the most visited are ThomasNet, IndiaMart, and eWorldTrade. When performing product research and sourcing through these online markets, it’s important to be aware of possible counterfeit goods. Consider the pricing and quality of items as you source products and monitor customer service responses to gauge satisfaction.

Profiting from Amazon FBA 

Deciding how to sell on Amazon without inventory depends on what stage of your business you’re in and how quickly you want it to grow. At Forum Brands, we  buy Amazon FBA businesses  and build them into world-class consumer brands. We offer passionate entrepreneurs fast and efficient payouts equaling years’ worth of profits based on their e-commerce business valuation. Part of the criteria to qualify includes having a business that receives 70% or more of sales through Amazon FBA with at least $200K in net profit in the past year.

By delegating logistics to Amazon FBA, it gives you more time and resources to strategize for growth. No two journeys are exactly the same, but if your end goal is to sell your Amazon business, it requires establishing a strong operational foundation and then optimizing and scaling it to maximize the profit margin.

https://sell.amazon.com/fulfillment-by-amazon?ref_=sdus_soa_fba_n

https://sell.amazon.com/learn/what-is-dropshipping?ref_=sdus_soa_drop_n

https://www.nerdwallet.com/article/small-business/how-to-find-products-to-sell-on-amazon

https://www.junglescout.com/blog/amazon-fba-vs-fbm/

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How to Sell on Amazon without Inventory: The Easy Guide

how to sell on amazon without inventory

You know, the cost of space is a significant factor for eCommerce business. Particularly for small-scale eCommerce ventures, the challenge of investing in ample storage to accommodate products can pose a major obstacle to maintaining profitability. Nevertheless, a business model offers the opportunity to sell products on the best-selling platform in the world – Amazon without the need for personal inventory storage.

In this article, we will delve into how to sell on Amazon without inventory through the following sections:

  • Explanation of the concept of selling on Amazon without inventory 
  • How to sell on Amazon without inventory
  • Tips for How to sell on Amazon without inventory

How Selling on Amazon without Inventory Works?

Selling on Amazon without inventory is a business model where sellers don't keep products in stock.

Before exploring how to sell on Amazon without inventory, let’s start by what it is. Selling on Amazon without inventory is a business model where a seller doesn’t keep the products they sell in stock. Instead, when an item is sold, the seller purchases it from a third party and has it shipped directly to the customer.

Here’s a simple explanation of how it works:

  • Listing products: The seller lists products for sale on Amazon. The seller doesn’t purchase the products upfront, so there’s no inventory cost at this stage.
  • Receiving orders: The seller receives the order details when a customer orders a product.
  • Order fulfillment : You either have a third-party supplier handle the order fulfillment, or an inventory service handle the delivery.
  • Shipping the product : The third-party supplier packages and ships the product directly to the customer. The seller never handles the product directly.
  • Handling customer service : The seller is responsible for customer service, including handling any questions, complaints, or returns.

Selling on Amazon without inventory vs with inventory

Selling on Amazon without inventory differs significantly from the traditional selling style with inventory. To gain a clear understanding of the variances between these two approaches, refer to the following comparison table:

Advantages of selling on Amazon without inventory

Selling on Amazon without inventory offers several considerable advantages for you, including: 

  • Lower initial investment : If you know how to sell products on Amazon without inventory, you will have a lower initial investment compared to traditional retail models. Without the need to purchase and store inventory, you can save on upfront costs.
  • Reduced risk: Knowing how to sell on Amazon without inventory can help mitigate the risk of holding physical inventory. You can fulfill orders directly from manufacturers by leveraging no-inventory models. It also eliminates the need to hold inventory and reduces unsold product risk.
  • Streamlined operations: Selling on Amazon without inventory allows you to focus on marketing, customer service, and growing your business rather than managing inventory logistics. This streamlined approach can save time and resources, enabling you to scale your operations efficiently. From there, you can partly solve the problem of how to increase sales on Amazon.
  • Access to a global marketplace: Amazon provides access to a vast customer base and a global marketplace. Knowing how to sell items on Amazon without inventory lets you tap into this extensive network. As a result, you can reach customers worldwide without needing physical inventory storage in different locations.
  • Diversification: Understanding how to start selling on Amazon without inventory can also help you diversify your product offerings without investing in new inventory. By taking advantage of dropshipping or print-on-demand models, you can quickly test new products and expand their catalog without the risk of holding excess inventory.

How to Sell on Amazon without Inventory: 5 Methods 

Actually, there are many models of how to sell on Amazon without inventory. In this guide, we will mention 5 most common models. Let’s thoroughly read to get which one is right for your business.

Dropshipping

If you have little capital, dropshipping is a great option.

The first model you should know on how to sell on Amazon without inventory is surely dropshipping. This is a business model in which the seller does not keep an inventory of their products. Instead, when an order is received, the seller forwards it to a third-party supplier or manufacturer who then delivers the items directly to the customer . The seller plays the role of a middleman between the end-user and the supplier, handling the business’s marketing, sales, and customer service aspects.

The Amazon dropshipping process typically involves the following steps:

  • The seller sets up an online store and lists products for sale.
  • When a customer places an order and pays, the seller receives the order details.
  • The seller then forwards the order and customer information to the supplier or manufacturer.
  • The supplier or manufacturer packages and ships the product directly to the customer .
  • The seller keeps the difference between the price they charge the customer and the price they pay the supplier as their profit.

Dropshipping offers several benefits but still has some drawbacks for Amazon sellers, such as:

FBA can help you save time solving fulfillment problems

The next model you should consider for how to sell on Amazon without inventory process is Amazon FBA (Fulfillment by Amazon).  Amazon provides this service to help sellers with storage, packaging, and shipping assistance. With Amazon FBA, you can send their products to Amazon’s fulfillment centers, where the items are stored until they are sold. 

So, how does Amazon FBA work? The process of using Amazon FBA involves the following steps:

  • Sellers ship their items to Amazon’s fulfillment centers , where they’re stored.
  • When an order is placed, Amazon’s staff handles picking, packing, and shipping on the seller’s behalf.
  • Amazon offers customer service and manages returns for FBA-fulfilled orders.

When leveraging Amazon FBA to address how to sell stuff on Amazon without inventory, you can enjoy several benefits. Nevertheless, like any other model, Amazon FBA also has certain disadvantages. You can see in the table:

To know more about Amazon FBA and its related fees, read these articles: Amazon FBA vs FBM and Amazon seller fees .

Third-Party logistics company

When selling on Amazon without inventory, you doesn't have physical stock

A Third-Party Logistics (3PL) company is a service provider that offers storage, order fulfillment, and shipping services to businesses. When selling on Amazon without inventory, the seller does not hold physical stock of their products. Instead, they rely on a 3PL company to store the products and fulfill customer orders. Here’s how it typically works:

  • The seller teams up with a 3PL company to handle their products. 
  • The 3PL company stores and manages the inventory for the seller. 
  • When a customer orders on Amazon, the 3PL company fulfills the order . 
  • The 3PL company handles packing and shipping directly to the customer. 
  • The seller focuses on sales, marketing, and customer service , while the 3PL takes care of logistics and order fulfillment.

In the context of how to sell on Amazon without inventory, using 3PL services gives a lot of benefits. However, this model still comes with several drawbacks, as you see in the table:

Sell digital items

Digital products on Amazon don't need storing or shipping physically

Digital products are items that exist in digital form, such as ebooks, audiobooks, music, digital art, software, online courses, templates, or printable items. Of course, digital items do not always need physical storage or shipping. That’s why this model has become a popular strategy for those who are struggling to find a way to answer the question, “How do I sell on Amazon without inventory” or how to make money on Amazon without writing .

Here are the key steps involved in how to sell on Amazon without inventory through digital products:

  • Register as an Amazon seller :  You need to have an Amazon seller account to gain access to the Seller Central dashboard.
  • Choose the appropriate platform : You need to choose the right Amazon platform for your digital product; for instance, use Kindle Direct Publishing (KDP) for ebooks, Amazon Music for digital music, or Merch by Amazon for digital art. You can also make money on Amazon without writing using alternative approaches like outsourcing content creation or using public domain works.
  • Create your digital product : You need to follow Amazon’s guidelines for formatting, content, and metadata to create your digital product.
  • Upload your digital product : You have to upload your digital product to the appropriate platform within Amazon and set your pricing.

There are several considerable benefits if you choose digital products as a way to become an Amazon seller without inventory. However, how to sell on Amazon without inventory through digital items still has a few drawbacks. Refer to the table below to gain a clear understanding of this model’s strengths and weaknesses: 

Sell print-on-demand products

Print-on-demand items become more and more popular

The final model of how to sell products on Amazon without inventory relates to print-on-demand (POD) items. POD refers to offering customized products that are produced and shipped only when an order is received. You earn a profit from the difference between the product’s cost and the price you set on Amazon.  Here’s how it typically works:

  • Choose a print-on-demand provider that integrates with Amazon’s platform. Popular providers include Printful, Amazon merch on demand , and Printify.
  • Use a design tool or hire a graphic designer to make unique and appealing designs.
  • Connect your print-on-demand provider with your Amazon seller account.  
  • When a customer places an order, the print-on-demand provider receives the order details, produces the customized items, and ships it directly to the customer on your behalf. 

Like any other model, selling print-on-demand products on Amazon without inventory offers both advantages and disadvantages, including:

Tips for How to Sell on Amazon Without Inventory

Now, we will explore four key tips on how to sell on Amazon without inventory: 

Select your suppliers carefully

Choosing reliable suppliers is so important on how to sell things on Amazon without inventory 

One of the most critical aspects of how to sell on Amazon without buying products is choosing reliable suppliers. Your suppliers are essentially your business partners, and their performance can directly impact your reputation and success . Here are some tips on selecting your suppliers:

  • Research : It would be better to look for suppliers with a solid track record of fulfilling orders promptly and accurately. You should consider reputable suppliers like SaleHoo, Worldwide Brands, or AliExpress.
  • Quality control : You should read product reviews and consider ordering samples to assess the quality for yourself. 
  • Shipping time s: It is essential to check the shipping times your suppliers offer. Amazon customers often expect fast shipping. Therefore, it’s vital to work with suppliers who can deliver products within a reasonable time frame, preferably within a few days.
  • Pricing and terms: You need to compare pricing and terms different suppliers offer. Also, pay attention to return policies and warranty terms.

Stay compliant with Amazon’s policies

Compliance is crucial to avoid penalties or account suspension.

As top marketplace for selling products, Amazon has strict policies and guidelines for all sellers, including those practicing how to sell on Amazon without inventory. It would be best if you stayed compliant to avoid penalties or account suspension. 

Here are some key aspects of Amazon’s policies to keep in mind:

  • Listing accuracy : You need to ensure your product listings are accurate and up-to-date. Displaying incorrect product information, such as price or availability, can result in negative feedback and harm your seller’s reputation.
  • Shipping and returns : You must stay on top of shipping times and returns. Late shipments or high returns can negatively affect your seller metrics. Be transparent about shipping times and return policies in your product listings.
  • Intellectual property : Please avoid selling counterfeit or trademarked products, which can lead to legal trouble and account suspension.

Offer excellent customer service

Satisfied customers often give positive reviews and become loyal purchasers.

Delivering exceptional customer service is pivotal in achieving success while selling on Amazon. Satisfied customers are inclined to leave favorable reviews and turn into loyal and returning customers.  Here are some tips to offer exceptional customer service:

  • Timely responses: Respond to customer inquiries promptly, ideally within 24 hours. Quick and helpful responses can turn potential issues into positive experiences.
  • Clear communication : Be clear and transparent with customers about product information, shipping times, and return policies. Avoid misunderstandings by providing accurate details.
  • Order tracking : Provide order tracking information so customers can follow the progress of their orders. This can reduce anxiety and increase confidence in your service.
  • Problem resolution: Address customer issues and concerns professionally and promptly. Whether it’s a late shipment or a damaged product, find a solution that leaves the customer satisfied.
  • Feedback and reviews : Encourage customers to give feedback and reviews, especially if they are satisfied with their purchase. Positive reviews can significantly boost your visibility and sales.

Optimize your product listings

You need to optimize product listings to convert potential customers

Optimizing your product listings is essential for attracting and converting potential customers. Here’s how to do it effectively:

  • Keywords: Research and use relevant keywords in your item titles and descriptions. This helps your products appear in Amazon’s search results when customers are looking for items you sell.
  • High-quality images: Use high-resolution images that showcase the product from different angles. Clear, professional images can instill confidence in potential buyers.
  • Compelling descriptions : Write compelling and informative product descriptions. Highlight the features and benefits of the product, and use persuasive language to encourage buyers.
  • Competitive pricing : Keep an eye on your competitors’ prices and adjust yours accordingly. Competitive pricing can attract more customers.
  • Fulfillment method : Clearly mention that your products are being dropshipped. Amazon allows dropshipping, but it’s essential to be transparent about it. Customers appreciate honesty.
  • A/B Testing : Experiment with different product listings to see what works best. You can test variations of titles, descriptions, and images through Amazon Manage Your Experiments, Splitly,… to optimize your listings for conversion.

How to Sell on Amazon without Inventory: FAQs

One way to sell on Amazon without selling physical products is by becoming an affiliate marketer . As an affiliate, you can promote products listed on Amazon and earn a commission for every sale made through your referral link. By creating engaging content, such as product reviews or tutorials, and driving traffic to Amazon through your affiliate links, you can generate income without the need to handle inventory or shipping.

To sell on Amazon without being a business, you can consider the following options:

  • Become an individual seller : Amazon allows individuals to sell products on their platform without the need for a business registration. You can create an individual seller account and list your products for sale. 
  • Sell as an affiliate : By sharing your unique affiliate links, you can earn a commission for every sale made through your referral.
  • Create and distribute merch : Amazon Merch on Demand allows you to design custom apparel and accessories that are printed on-demand. When a customer purchases your design, Amazon handles the printing and shipping, allowing you to earn royalties without the need for inventory 2.
  • Sell B2B : If you want to sell to other businesses, Amazon Business is designed to help you reach B2B customers of all sizes. 

To buy products to sell on Amazon, you can consider the following options:

  • Wholesale suppliers : Contact manufacturers, distributors, or wholesalers directly to purchase products in bulk at wholesale prices. Websites like Alibaba, Thomasnet, and Wholesale Central can help you find suppliers.
  • Retail arbitrage: Purchase products from retail stores or online marketplaces at a discounted price and resell them on Amazon at a higher price.
  • Private label : Source products from manufacturers and customize them with your own branding. Websites like Alibaba, Global Sources, and Made-in-China can help you connect with manufacturers.
  • Dropshipping : Partner with a dropshipping supplier who will handle inventory storage and shipping. When a customer places an order, the supplier ships the product directly to the customer. Platforms like Oberlo and AliExpress offer dropshipping options.

Can you Sell on Amazon without Inventory? Absolutely Yes!

In conclusion, selling on Amazon without inventory can be a viable and profitable business model with the right strategies in place. By carefully selecting reliable suppliers, staying compliant with Amazon’s policies, offering excellent customer service, and optimizing your product listings, you can set yourself up for success in the competitive Amazon marketplace. So, take the plunge and start your journey as an Amazon seller today!

In addition, if you are looking for a tool to help you solve the inventory problem when doing eCommerce business, LitCommerce is the answer for you. To know more about this great tool, contact us now!

Finally, to not miss any interesting information about the eCommerce industry, don’t forget to follow our Blog.

David Do

I'm David Do LitC, Writer at LitCommerce. I have over 3 years of experience writing about marketing, SEO, and technology for E-Commerce businesses.

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Blog » Amazon selling tips » How to Sell on Amazon Without Inventory: The Ultimate Guide

Sell on Amazon without inventory

How to Sell on Amazon Without Inventory: The Ultimate Guide

Table of Contents

  • 1.1 Types of selling without inventory
  • 2.1 Advantages of selling without inventory
  • 2.2 Disadvantages of selling without inventory
  • 3.1 Tools and methods for product research
  • 3.2 Evaluating Potential Profit
  • 3.3 Examples of successful inventory-less products to sell on Amazon
  • 4.1 Preparation Stage
  • 4.2 Selling Stage
  • 4.3 Post-sale stage
  • 5.1 What can SellerSonar do?
  • 5.2 SellerSonar features
  • 6.1 Golden rules of Amazon sales management
  • 6.2 Tips for order handling and customer service
  • 6.3 Avoiding common mistakes that can lead to account suspension or failure
  • 6.4 Listing and pricing optimization strategies for maximizing profit
  • 7.1 Recap and key benefits of inventory-less selling on Amazon
  • 7.2 Recommendations for successfully managing sales on Amazon without inventory

For aspiring and seasoned Amazon sellers alike, the world’s largest online marketplace offers boundless opportunities for financial success. Yet, the traditional model of buying, stocking, and managing inventory can be a daunting and capital-intensive endeavor. The good news is that there’s a way to tap into Amazon’s vast customer base without the need to invest in a warehouse full of products. Welcome to the world of selling on Amazon without inventory!

In this comprehensive guide, we’ll walk you through the strategies, tools, and techniques that will allow you to thrive as a seller while minimizing your inventory-related risks and costs. We will discuss how to sell products on Amazon without inventory, how to become an Amazon seller without inventory, and how to make money on Amazon without inventory.

Whether you’re just starting your e-commerce journey or looking to optimize your existing business, you’ll discover the key steps to succeed in the lucrative realm of inventory-free selling. Prepare to unlock the potential of Amazon’s vast marketplace and revolutionize your approach to e-commerce. Let’s get started on your path to selling on Amazon without the burden of inventory holding you back.

What Is Selling on Amazon Without Inventory?

Selling on Amazon without inventory refers to a business model where sellers list and sell products on Amazon’s platform without physically stocking or storing the products themselves. Instead, they rely on various methods to fulfill customer orders directly from suppliers, manufacturers, or third-party fulfillment centers. This approach is also commonly known as “inventory-free selling” or “inventoryless e-commerce.”

Types of selling without inventory

Dropshipping: In a dropshipping model, sellers partner with suppliers or manufacturers who handle the storage, packaging, and shipping of products directly to customers. Sellers list these products and only purchase items from their suppliers when a customer places an order. That means sellers do not maintain physical inventory but act as intermediaries between suppliers and customers.

Fulfillment by Amazon (FBA): While FBA typically involves storing inventory in Amazon’s fulfillment centers, it can also be adapted for an inventory-free approach. Sellers can use FBA to fulfill orders with products that are stored and managed by third-party suppliers or manufacturers. In this case, Amazon handles the fulfillment process, including shipping and customer service.

Merch by Amazon: For sellers in the business of custom-designed products like apparel, accessories, or books, print-on-demand services allow them to create and sell products on Amazon as orders come in. Sellers produce these items and ship them only when there is demand, eliminating the need for inventory storage.

Amazon Merch on Demand examples

Amazon Merch on Demand examples

Third-Party fulfillment centers: Some sellers partner with third-party fulfillment centers that store, pick, pack, and ship products on their behalf. That allows sellers to maintain greater control over inventory levels and shipping processes while still avoiding the need for their own warehouse.

Why Selling on Amazon Without Inventory is Popular

Selling on Amazon without inventory has become increasingly popular due to its potential advantages, including reduced upfront costs, minimized inventory risk, scalability, and flexibility. However, it also comes with challenges, such as maintaining product availability, ensuring timely fulfillment, and effectively managing relationships with suppliers or fulfillment partners.

Successful inventory-free sellers must carefully select reliable suppliers, manage their product listings and pricing effectively, and prioritize customer service to maintain a positive reputation and customer satisfaction.

Advantages of selling without inventory

Lower capital investment.

One of the most significant advantages of selling without inventory is the dramatically reduced upfront capital requirements. Traditional retail models often demand substantial investments in purchasing and storing inventory. With inventory-free selling, you can allocate your capital more efficiently towards other critical aspects of your business, such as marketing and product development.

Reduced risk

Holding inventory can be a risky endeavor. Unsold products tie up your funds, and there’s always the possibility of products becoming obsolete or losing value over time. Inventory-free selling minimizes these risks, allowing you to adapt quickly to changing market trends and consumer preferences.

Scalability

Selling without inventory facilitates easy scalability. You can expand your product catalog without the worry of warehousing constraints. This scalability potential empowers you to explore new niches and markets swiftly, capitalizing on emerging opportunities.

Focus on marketing and customer experience

Without the burden of managing inventory, you can channel your efforts into refining your marketing strategies and enhancing the overall customer experience. This focus can lead to increased sales and improved customer satisfaction, fostering long-term success.

Streamlined operations

Inventory-free selling simplifies various operational aspects, such as order fulfillment and inventory management. This simplicity translates to cost savings and allows you to run a more efficient and agile business.

Disadvantages of selling without inventory

Limited control over stock availability.

When you rely on dropshipping or third-party fulfillment, you may face occasional challenges in ensuring product availability and timely shipping. This lack of control can lead to potential customer dissatisfaction.

Competitive landscape

As the popularity of inventory-free selling grows, competition in Amazon’s marketplace intensifies. It becomes crucial to differentiate your offerings and brand to stand out in a crowded field.

Logistical challenges

Coordinating with suppliers and managing shipping logistics can be more complex when compared to traditional inventory management. Effective communication and partnerships with reliable suppliers become paramount.

Dependency on partners

Inventory-free sellers often rely on third-party suppliers or fulfillment centers. If these partners face issues, it can directly impact your ability to fulfill orders and maintain customer satisfaction.

Finding Winning Products

Selling on Amazon without inventory can be a lucrative venture if you can identify winning products that resonate with the marketplace. Success in this model hinges on effective product research, assessing profit potential, and finding examples of successful inventory-less products. Let’s dive into these essential aspects:

Tools and methods for product research

Amazon Best Sellers: Start your product hunt by exploring Amazon’s Best Sellers list in various categories. These lists reveal the most popular products on the platform, giving you insights into trending items with high demand.

Market research software : Leverage third-party market research tools such as Jungle Scout, Helium 10, or AMZScout. These tools provide valuable data on market trends, estimated sales, and competitor analysis. You can discover products with favorable sales ranks, which often indicate high demand.

Google Trends: Use Google Trends to assess the long-term viability of a product idea. It offers information on the popularity of specific search terms over time, helping you identify seasonal trends and evergreen niches.

Social media and forums: Actively participate in or observe discussions on social media platforms and niche-specific forums like Reddit. Customer feedback and comments can provide insights into trending products and consumer preferences.

Supplier directories: Explore supplier directories like Alibaba or AliExpress to identify products that you can source through dropshipping or print-on-demand services. These directories often showcase trending items and can provide information on supplier reliability.

Evaluating Potential Profit

Cost analysis: Calculate the total costs associated with selling a particular product. That should include expenses like product sourcing, shipping, Amazon fees, marketing, and any other relevant costs. Ensure that the potential profit margin is sufficient to cover these expenses and leave room for a reasonable profit.

Competitor analysis : Study your competitors to understand their pricing strategies, customer reviews, and product listings. Identify opportunities to differentiate your product or offer unique value to customers.

Demand and seasonality: Consider the demand for the product throughout the year. Some products may be seasonal, while others have consistent year-round demand. Be prepared to adjust your inventory and marketing strategies accordingly.

Shipping and fulfillment: Choose a fulfillment method that aligns with your business goals and provides reliable delivery to customers. Whether it’s dropshipping, third-party fulfillment, or FBA, ensure it suits your chosen product niche.

Examples of successful inventory-less products to sell on Amazon

In your quest to find winning products, remember that trends can change rapidly, so it’s essential to stay updated and adapt your product selection accordingly. Additionally, customer feedback and continuous market research are invaluable in sustaining a successful inventory-less Amazon business.

Key Stages of Selling

Selling on Amazon without inventory offers numerous advantages, but it also requires careful planning and execution across these key stages. By diligently preparing, implementing effective selling strategies, and providing exceptional post-sale support, you can establish a thriving e-commerce business while minimizing the challenges associated with managing physical inventory.

Selling on Amazon without inventory involves a series of crucial stages to ensure a successful and sustainable e-commerce business. These stages encompass preparation, the selling process, and post-sale activities. Let’s break down each stage.

Preparation Stage

Create a seller account on amazon.

The journey begins by setting up a seller account on Amazon. Choose an Individual or Professional account, depending on your expected sales volume. Registering as a seller allows you to access Amazon’s vast customer base and utilize various selling tools.

Set up a seller profile on Amazon

Create a compelling seller profile that instills trust in potential buyers. Include detailed information about your business, such as your brand story, logo, and contact details. An appealing seller profile enhances your credibility and encourages customers to engage with your listings.

Conduct market research

Effective market research is crucial for identifying profitable product opportunities. Analyze market trends, assess demand, and explore product niches that align with your business goals. Tools like Amazon Best Sellers, third-party analytics software, and competitor analysis help you make informed decisions.

Selling Stage

Pricing strategies for inventory-less products.

Determine competitive pricing strategies that balance profitability and customer affordability. Account for all costs, including sourcing, shipping, Amazon fees, and marketing expenses. Regularly monitor and adjust your pricing to remain competitive in the marketplace.

Creating Amazon listings

Create detailed and optimized product listings that attract and inform potential buyers. Include high-quality images, keyword-rich product titles, informative descriptions, and essential product attributes. Listings should be accurate, compelling, and compliant with Amazon’s guidelines.

Attracting buyers

Effectively market your products to attract buyers. Utilize Amazon Advertising, social media promotions, and search engine optimization (SEO) techniques to increase product visibility. Encourage customer reviews and leverage Amazon’s advertising tools to boost sales.

Post-sale stage

Order processing.

Efficiently handle order processing, whether you are dropshipping, using third-party fulfillment, or another fulfillment method. Ensure prompt order confirmation, shipping, and tracking updates. Accuracy and timeliness are key to customer satisfaction.

Customer communication

Maintain open and clear communication with customers. Address inquiries, resolve issues, and provide exceptional customer service. Proactive communication helps build trust and encourages repeat business.

Troubleshooting

Expect and be prepared to troubleshoot issues that may arise. These could include shipping delays, product defects, or customer disputes. Develop solutions and policies to handle these situations promptly and professionally.

Amazon Listing Tools: SellerSonar

To successfully sell on Amazon without inventory, you can use seller tools. SellerSonar is a comprehensive Amazon seller tool that offers a variety of features to help you optimize your listings, track your competitors, and stay ahead of the market.

SellerSonar Dashboard

SellerSonar Dashboard

What can SellerSonar do?

  • Identify the most relevant keywords for your products: SellerSonar ‘s keyword research tool helps you find the keywords that potential customers are using to search for products like yours. That allows you to optimize your listings for better visibility and sales.
  • Analyze your competitors’ strategies: SellerSonar’s competitor research tool gives you insights into your competitors’ keyword rankings, listings, pricing, and Best Seller Rank (BSR). This information can help you identify areas where you can improve your own listings and strategies.
  • Track your product’s performance over time: SellerSonar’s product tracking tool helps you track your product’s sales, reviews, ratings, and BSR over time. This data can help you identify trends and make adjustments to your listings and strategies as needed.

SellerSonar features

Hijacking alerts : SellerSonar can monitor your listings for hijacking, which is when unauthorized sellers attempt to sell counterfeit or similar versions of your products. If SellerSonar detects any hijacking activity, it will send you an alert so you can take action immediately.

Competitor Research: SellerSonar allows you to analyze competitors with its competitor research tool. You can get data about competitors’ keyword rankings, listings, pricing, and BSR and, based on that, outbeat them.

Price change alerts: SellerSonar can track the prices of your competitors’ products and send you alerts when their prices change. That allows you to stay competitive and ensure that you are offering the best prices possible.

Product listing alerts: SellerSonar can monitor your listings for any changes, such as price changes, title changes, or image changes. That allows you to stay informed about your listings and take action if necessary.

Product review and rating alerts: SellerSonar can monitor your product reviews and ratings and send you alerts when you receive a new review or rating. That lets you respond to customer feedback promptly and manage your online reputation.

FBA calculator: SellerSonar’s FBA calculator can help you estimate your profit margin for FBA products. This tool takes into account factors such as fees, product dimensions, freight cost, and weight.

Ready to experience the benefits of SellerSonar for yourself? Try the demo account and register for a 29-day free trial today!

SellerSonar3

Strategies for Successful Selling without Inventory

Selling on Amazon without inventory offers unique opportunities, but success hinges on the right strategies and careful management. Here are some key strategies to thrive in this business model.

Golden rules of Amazon sales management

Continuous market research: Stay updated on market trends, competitor activities, and customer preferences. Regularly evaluate your product selection to ensure relevance and profitability.

Pricing strategies: Set competitive and dynamic prices that consider all costs. Regularly analyze your pricing to remain competitive while maintaining profitability.

Quality customer service: Prioritize excellent customer service by promptly addressing inquiries and issues and providing accurate information. Positive customer experiences lead to better reviews and repeat business.

Optimized listings: Craft informative, keyword-rich product listings with high-quality images. Use Amazon’s A+ Content and Enhanced Brand Content features for enhanced product descriptions.

Tips for order handling and customer service

Efficient order processing: Ensure that your order processing and fulfillment methods are efficient and reliable. Timely order confirmation, accurate shipping, and tracking updates are essential for customer satisfaction.

Clear communication: Maintain clear and transparent communication with customers. Address inquiries and issues promptly and always provide realistic delivery estimates.

Returns and refunds: Develop clear policies for returns and refunds. Handle returns promptly and professionally to avoid negative customer feedback.

Feedback management: Encourage positive reviews and manage negative feedback effectively. Respond to negative reviews with a resolution or clarification when appropriate.

Avoiding common mistakes that can lead to account suspension or failure

Intellectual property violations: Avoid selling counterfeit or trademarked products. Ensure that you have the necessary rights and permissions for any products you list.

Policy violations: Familiarize yourself with Amazon’s policies and guidelines. Violating these can result in account suspension. Pay attention to restricted products and categories.

Inadequate inventory management: If you’re relying on third-party suppliers, ensure they maintain sufficient inventory to fulfill orders promptly. Running out of stock can harm your reputation.

Poor quality products: Selling low-quality or defective products can lead to customer dissatisfaction and account issues. Source products from reputable suppliers.

Listing and pricing optimization strategies for maximizing profit

Keyword research: Use keyword research tools to identify relevant and high-search-volume keywords. Incorporate these into your product listings for better visibility.

Competitor analysis: Monitor competitor pricing, product descriptions, and customer reviews. Identify opportunities to differentiate your offerings or improve your listings.

Dynamic pricing: Implement dynamic pricing strategies that adjust prices in response to market changes, demand fluctuations, and competitor actions.

Optimize images: High-quality images that showcase product features can significantly impact conversions. Use multiple images to provide different angles and views.

Amazon Advertising: Invest in Amazon Advertising campaigns to promote your products and boost visibility. Optimize your ad spend for maximum ROI.

By following these strategies and staying vigilant in your Amazon sales management, you can build a successful inventory-less Amazon business while mitigating common pitfalls and delivering exceptional value to your customers.

In this ultimate guide, we’ve explored the world of selling on Amazon without the burden of physical inventory. This innovative approach offers significant advantages for e-commerce entrepreneurs. Let’s recap the key benefits and provide some essential recommendations for successful inventory-less selling on Amazon.

Recap and key benefits of inventory-less selling on Amazon

Lower capital investment: Start and grow your Amazon business with minimal upfront costs, as you don’t need to invest in inventory storage.

Reduced risk: Inventoryless selling eliminates the risk of holding unsold stock, allowing you to stay agile in response to market changes.

Scalability: Quickly expand your product range and explore new niches and markets thanks to the flexibility of this model.

Focus on marketing and customer experience: With less time spent managing inventory, you can concentrate on improving marketing strategies and delivering exceptional customer service.

Streamlined operations: Inventoryless selling simplifies operations, leading to cost savings and increased efficiency.

Recommendations for successfully managing sales on Amazon without inventory

Market research: Continuously monitor market trends, conduct competitor analysis, and adapt your product selection accordingly.

Pricing strategies: Implement competitive pricing and regularly review and adjust to stay competitive and profitable.

Customer service: Prioritize excellent customer service by addressing inquiries and issues promptly.

Policy compliance: Familiarize yourself with Amazon’s policies and guidelines to avoid violations and adhere to product category restrictions.

Optimized listings: Create informative, visually appealing product listings with keyword optimization.

Dynamic marketing: Invest in Amazon Advertising to boost product visibility and optimize your advertising spend.

With these strategies and the advantages of inventory-less selling, you’re well-equipped to build a thriving Amazon business. Success requires adaptability, continuous learning, and unwavering commitment to customer satisfaction. Unlock your full potential in the world of e-commerce, where opportunities abound for those who embrace this innovative approach.

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June 22, 2023 | BY Matt Kenyon

How to sell on Amazon without inventory: the ultimate guide

Get more digital commerce tips.

Tactics to help you streamline and grow your business.

Amazon, the ecommerce giant, is more than just an online marketplace where you can buy virtually anything. It’s also a platform where you can profit from selling items without owning any inventory .

You read that right.

No need for boxes to clutter your living room or take up valuable warehouse space. Welcome to the world of Amazon FBA, FBM, and dropshipping.

Whether you’re an entrepreneur looking to kickstart your online business without a hefty investment or an existing business seeking to expand your retail presence without additional inventory, Amazon’s arsenal of “no-inventory” selling options has you covered.

In this guide, we’ll unpack the concepts of dropshipping, Fulfillment by Amazon (FBA), and Fulfillment by Merchant (FBM) and show you how to capitalize on these models to get more ecommerce sales.

Fasten your seatbelts and prepare for a deep dive into how to sell on Amazon without inventory!

How to Sell on Amazon Without Inventory 101

Selling on Amazon without inventory is like being a virtual middleman. You’re taking customer orders, forwarding them to your supplier, and letting them handle the rest.

No in-house inventory management, no fuss. No wonder so many Amazon sellers are moving to this model!

This model of selling products online revolves around three main strategies:

  • Dropshipping
  • Fulfillment by Amazon (FBA)
  • Fulfillment by Merchant (FBM) + 3PL

Defining Dropshipping, FBA, and FBM

Dropshipping is a business model where you don’t hold any inventory. Instead, you partner with a wholesale supplier that stocks its own products.

When you sell, the supplier ships the products from their warehouse directly to your customer. In essence, you’re selling a product that you never physically have.

Fulfillment by Amazon (FBA) is a service provided by Amazon that takes care of storage, packaging, and shipping on your behalf.

You send your products to Amazon’s fulfillment centers, and when a customer places an order, Amazon packs and ships the product.

Fulfillment by Merchant (FBM) is when you sell on Amazon but handle the storage and shipping of your products yourself.

Unlike FBA, you don’t send your inventory to Amazon. Instead, you manage everything in-house or (if you’re committed to the no-inventory model) with a third-party logistics (3PL) provider.

Benefits of selling without inventory

Cost savings, lower risk, and flexibility.

The most significant advantage of selling without inventory is cost savings .

When you choose to sell products online (using a traditional fulfillment model), you must accept that you’ll only profit about half of your revenue.

41.54% to be exact.

Renting warehouse space, supplying that space with packing materials, and navigating the complex world of shipping providers are just a few of the costs of holding physical inventory.

Selling without inventory also offers a lower risk . Since you’re not purchasing a product until it’s already been sold, there’s less financial risk involved.

You won’t be left with a bunch of unsold products if things don’t sell as anticipated.

Finally, these models provide flexibility . You can add or remove products from your online store without worrying about unsold stock.

This flexibility allows you to experiment with different products to see what works best for your audience.

Amazon FBA: what it is and how it works

Amazon order fulfillment facility

Fulfillment by Amazon (FBA) is a program where Amazon acts as your full-service logistics partner.

With FBA, you leverage Amazon’s expansive and advanced fulfillment network, freeing up your time to focus on growing your business.

Here’s how it works in more detail:

Product shipment to Amazon’s Fulfillment Centers

After sourcing your products, Amazon sellers ship them directly to Amazon’s fulfillment centers.

These centers, spread across the globe, are massive warehouses run by Amazon where your products are received, sorted, and stored until an order comes in.

Storage and inventory management

Once Amazon receives your products, they take on the responsibility of storing them safely.

Your products are inventoried and integrated into Amazon’s advanced inventory tracking system, ensuring they’re ready for fulfillment when an order is placed.

Order fulfillment

When a customer orders one of your products, Amazon springs into action.

They pick up the ordered product from their warehouse, pack it according to Amazon’s strict packaging guidelines, and ship it to the customer promptly.

This seamless process ensures prompt delivery and a positive customer experience.

Customer service and returns management

Amazon’s role isn’t done after shipping the product. They also handle all customer service related to the orders, which includes fielding customer inquiries and complaints.

Moreover, if a customer decides to return a product, Amazon handles that as well, ensuring the return process is as frictionless as possible.

Reporting and analytics

As a seller using FBA, you can access detailed reports and analytics about your sales performance. This data can be invaluable for making informed pricing, marketing, and product selection decisions.

FBA is a boon for businesses that prefer to outsource their logistics operations. It allows you to benefit from Amazon’s extensive infrastructure and customer service prowess while focusing on what you do best – sourcing or creating great products to sell.

Pros and cons of using Amazon FBA

  • Ease of Use : Amazon handles everything from storage to shipping and customer service, freeing you to focus on your product line and marketing strategies.
  • Prime Eligibility : FBA products are eligible for Amazon Prime, which can increase your visibility and customer base.
  • Customer Trust : FBA products are fulfilled by Amazon, lending credibility to your business and enhancing customer trust.
  • Cost : FBA can be expensive. You must account for storage fees, especially for slow-moving and seasonal items.
  • Commingling Risks : If you choose to commingle your inventory (i.e., mix your inventory with the same items from other sellers), you risk your product being swapped with a lower-quality item from another seller.
  • Limited Control : With FBA, you give up a degree of control, as Amazon handles your storage, packing, and shipping.

Amazon FBM: what it is and how it works

Woman managing ecommerce business from home

Fulfillment by Merchant (FBM), contrary to FBA, is an Amazon selling method where you, as the seller, have complete control over your inventory, order fulfillment, and customer service.

This method is preferred by sellers who want to keep hands-on control of their operations or those who can handle logistics more cost-effectively than Amazon’s FBA fees would allow.

It’s also worth mentioning that if sellers don’t want to manage inventory themselves but want to keep their products out of Amazon fulfillment centers, they can leverage a third-party logistics (3PL) provider in addition to FBM.

Integrating a 3PL provider in your FBM strategy allows you to enjoy the benefits of outsourcing fulfillment while still retaining more control over your inventory and customer service than you would have with FBA.

A third-party fulfillment center can be a game-changer for businesses, particularly those rapidly growing or dealing with complex shipping requirements.

Using a 3PL can lead to more efficient and professional handling of orders, which, in turn, can improve your seller’s reputation and increase customer satisfaction.

Furthermore, many 3PLs offer services beyond mere warehousing and shipping. These include inventory forecasting, kitting services, return management, and customer service support.

By offering these additional services, third-party inventory solutions can significantly lighten your operational load and give you more time to focus on growing your business.

Related post: 3PL Industry Trends: What to Watch Out For in 2023

Here’s a more in-depth look into the FBM process:

Product listing

In FBM, you list your products on Amazon just like you would in the FBA model. You create a product listing detailing the product’s features, benefits, and pricing.

A good listing is crucial, as it’s the primary way customers learn about your product on Amazon.

Order notification

Once a customer orders your product, Amazon sends you a notification. This notification includes important information like the customer’s delivery address and the product they’ve ordered.

After receiving the order notification, you must fulfill the order. You pick the ordered product from your inventory, package it safely and professionally, and ship it directly to the customer.

It’s crucial that this process is swift and efficient, as Amazon uses seller shipping performance when determining product listing ranks.

Unlike FBA, you’re fully responsible for customer service in the FBM model.

This includes answering customer inquiries, handling complaints, and managing return requests.

This direct interaction with customers offers an opportunity for personalized service, which can build customer loyalty and positive feedback.

Performance metrics and reviews

As an FBM seller, monitoring your performance metrics and customer reviews on Amazon is essential.

These can include your order defect rate, cancellation rate, late shipment rate, and customer feedback and ratings you receive. Maintaining high performance and positive reviews is key to succeeding with FBM.

In essence, FBM puts you in the driver’s seat, letting you control the entire sales process.

It can be an excellent option if you want full control over your operations, have the capacity to store and ship products efficiently, or sell products that aren’t cost-effective under Amazon’s FBA fee structure.

Pros and cons of using Amazon FBM

  • Control : You maintain complete control over your inventory, packing, and shipping.
  • Cost Savings : Depending on your business model and product, FBM can be less costly than FBA since you’re not paying Amazon’s storage and fulfillment fees.
  • Flexibility : You can quickly adapt to changes in your business without needing to ship inventory back and forth from Amazon’s warehouses.
  • Time-Consuming : With FBM, you’re in charge of the entire fulfillment process, which can be time-consuming.
  • No Prime Eligibility : FBM products are typically not eligible for Amazon Prime, which could limit your sales.

Dropshipping on Amazon: what it is and how it works

Dropshipping order fulfillment

Dropshipping is a unique retail fulfillment model allowing you to sell products on Amazon without holding any products.

It is the epitome of how to sell on Amazon without inventory.

When a customer purchases a product from your store, you forward the order details to a third-party supplier, who then orders on your behalf, shipping the product directly to the customer.

Here’s a detailed breakdown of the dropshipping process:

As a dropshipper on Amazon, your first step is creating a product listing on your Amazon store. This product is one that your supplier has in stock. Your listing should be compelling and accurate, clearly detailing the product’s features, benefits, and pricing.

Customer purchase

When a customer orders the listed product on your store, you receive a notification of the sale. The revenue from the sale goes to you.

Order forwarding

After receiving the customer’s order, you then forward the order details, including the customer’s shipping address and product information, to your supplier.

Supplier fhipment

Once your supplier receives the order details, they pick, pack, and ship the product directly to your customer.

They do not include any of their branding or invoices in the package, so the customer assumes the product came directly from your store.

In a dropshipping model, you still handle customer service. This includes answering customer inquiries and managing return requests.

If a customer wishes to return a product, you would coordinate with your supplier to arrange the return or refund.

Dropshipping on Amazon can be an excellent business model for those looking to start selling online with minimal upfront investment.

It allows you to sell various products without needing to purchase inventory in advance or worry about storage and fulfillment.

It’s worth mentioning that dropshipping, while an attractive model for ecommerce selling, has become highly saturated over the last several years.

It’s still possible to make good money selling items with dropshipping, but it will likely require more creativity and some more work to find bankable products.

Check out this video for more information on how to get started:

Pros and cons of Dropshipping

  • No Inventory Required : You only purchase a product after the customer has made a purchase, significantly reducing your risk.
  • Low Startup Costs : With no inventory to purchase upfront or manage, dropshipping is a cost-effective way to start selling on Amazon.
  • Lower Profit Margins : Since you’re sourcing products from third-party suppliers, the profit margins for dropshipping tend to be lower.
  • Limited Control : You have little control over the shipping process and product quality, which can lead to customer service challenges.
  • Deeply Saturated: Many sellers have turned to dropshipping as a way to make fast, risk-free money. This means the barrier to entry is low, and successful sellers will need to get creative to find profitable products.

How to choose the right strategy for your business

Determining the right strategy for your business—whether it be Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), or dropshipping—requires careful consideration of various factors.

These can range from your initial budget and the amount of time you can devote to your business, to the type of products you’re selling and your overall business objectives.

Here’s a closer look at how these factors can influence your choice:

If you’re starting with a smaller budget, FBM or dropshipping may be better suited for you. FBA requires upfront inventory investment and additional storage and fulfillment fees in Amazon’s warehouses.

On the other hand, dropshipping requires very little upfront cost as you don’t purchase the product until after the customer has paid. FBM requires you to handle shipping, but if you already have an established process for shipping and handling, it may not be a significant cost.

For example, a small business owner selling handmade crafts might choose FBM because they already have a workshop for production and storage and would prefer to save on FBA fees.

Amazon FBA might be your best bet if you’re pressed for time. It eliminates your need to handle shipping, returns, and customer service, as Amazon takes care of these areas.

However, if you prefer to maintain control over these aspects or sell products requiring special care or knowledge to ship, then FBM might be a better fit.

For instance, a business owner selling vintage electronics may opt for FBM due to their familiarity with such items’ special packaging and handling requirements.

Product type

The type of products you sell can significantly influence your choice. Bulky or heavy items may be costly to ship on your own, making FBA a better option.

However, items with a high profit margin or those that are lightweight might be more profitable to ship yourself using FBM.

With dropshipping, the range of products you can sell is broader, as you don’t have to buy them upfront, but you need to ensure the supplier can deliver a quality product on time.

For example, an entrepreneur selling designer homewares may go with dropshipping to leverage a diverse product range without a significant upfront investment.

Business goals

If your goal is to scale quickly, FBA might be the best choice as it allows you to reach a larger customer base and leverages Amazon’s logistics capabilities.

However, if you want to maintain more control over your brand and customer relationships, FBM or dropshipping might be better suited for your needs.

For instance, a growing business to reach national or international customers might opt for FBA to tap into Amazon’s vast customer base and advanced logistics network.

Each method has its unique set of benefits and challenges. Evaluating your resources, needs, and business goals can help you find the most balanced approach regarding profit, control, and scalability.

Best Practices for how to sell on Amazon without inventory

Knowing how to sell on Amazon without inventory has distinct advantages, but that doesn’t mean it’s a walk in the park.

To ensure your success with this approach, here are some best practices to keep in mind:

1. Choose your suppliers carefully

Whether you’re dropshipping, using FBA, or FBM with a 3PL, the reliability of your supplier plays a significant role in your success.

Research potential suppliers thoroughly, evaluate their reliability, and ensure they can meet your demands.

Consider factors like their reputation, product quality, delivery speed, and return policies.

2. Manage your inventory effectively

Even though you don’t physically handle the inventory, you must keep track of it. Use a reliable inventory management system , like SkuVault Core, to ensure your listings always reflect the actual stock levels.

This can help prevent situations where a product is sold out at the supplier but still listed as available in your store, leading to a poor customer experience.

3. Optimize your listings

Optimizing your product listings is crucial to attracting potential customers. Use high-quality images, compelling descriptions, and relevant keywords.

Keep your product titles concise yet informative. A well-optimized listing ranks higher in Amazon’s search results and convinces customers to click ‘Add to Cart.’

4. Provide excellent customer service

Your customer service plays a significant role in your business success. Remember, your customers don’t care who your supplier is – they bought the product from you.

Therefore, handle customer inquiries, returns, and refunds promptly and professionally. A happy customer is likelier to leave positive reviews, improving your seller’s reputation.

5. Monitor your performance

Track your performance regularly to identify areas that need improvement. Monitor key metrics such as sales, return rate, customer reviews, and seller ratings.

Amazon’s Seller Central provides a wealth of data that you can use to assess your performance and make data-driven decisions.

6. Stay compliant with Amazon’s policies

Amazon has strict rules for sellers , including those selling without inventory.

Trust us, the last thing you want is to wake up to an email saying your Amazon Seller Account was banned due to terms of service violations.

Make sure you’re familiar with Amazon’s policies for sellers and stay compliant to avoid penalties, suspensions, or even being banned from the platform.

Embracing these best practices can help you successfully navigate the world of selling on Amazon without inventory, maximizing your profits while ensuring customer satisfaction.

Sell digital products: another way to sell without inventory

In the world of ecommerce, there’s yet another strategy for selling on Amazon without inventory that’s been gaining popularity: selling digital products.

Digital products are items that exist in digital form such as eBooks, music, digital art, software, online courses, templates, or printable items.

These products can offer a high profit margin as they require no physical materials, manufacturing, or shipping.

Once created, they can be sold infinite times without additional production costs.

If you want to sell digital products, follow these steps:

  • Create a digital product. This could be an eBook, a music file, a software application, or any other kind of digital media.
  • Set up a seller account on the Amazon Digital Services platform.
  • Upload your digital product and set your pricing.
  • When a customer purchases your product , Amazon handles the distribution. The customer can immediately download or access the product.

This is obviously an oversimplification of the process, but if you want to go this route, check out this video:

There are several advantages to selling digital products. They provide an excellent way to diversify your offerings and reach a wider audience.

They also tend to yield high-profit margins, thanks to their low overhead and production costs.

Plus, since there’s no physical product, there are no concerns about inventory management, shipping, or fulfillment.

However, like any business model, this selling digital products has challenges. These can include stiff competition, the need for continuous updates to stay relevant, and the necessity of robust digital security.

Therefore, careful planning, ongoing market research, and quality product development are crucial for success in this kind of ecommerce selling.

Frequently asked questions about how to sell on Amazon without inventory

Can i do amazon fba without inventory.

Yes, you can utilize Amazon FBA without having your own inventory through methods like dropshipping or retail arbitrage (check out our blog post on retail arbitrage for more on the topic).

However, these methods have their own set of rules and requirements that you need to follow according to Amazon’s policy.

What is the minimum inventory to sell on Amazon?

There’s no set minimum inventory requirement to sell on Amazon.

However, it’s essential to maintain an adequate stock level to meet customer demand and avoid stockouts, which can negatively affect your seller rating.

Can I make $1000 a month selling on Amazon?

Yes, it’s possible to make $1000 a month selling on Amazon, but your amount depends on several factors, including the type of products you sell, your pricing strategy, and your marketing efforts.

It’s also important to consider Amazon’s fees and your other expenses.

Is it realistic to make money selling on Amazon?

Yes, making money selling on Amazon is realistic, but it requires research, effort, and an understanding of the marketplace.

Success isn’t guaranteed, and profits vary widely among sellers. It’s important to understand the costs involved, including Amazon’s fees, goods sold, and advertising or marketing costs.

How do I make passive income on Amazon without selling physical inventory?

There are several ways to earn passive income on Amazon without selling products:

  • Amazon Affiliate Program : Earn commissions by promoting other sellers’ products.
  • Amazon Kindle Direct Publishing (KDP) : Write and publish an eBook or paperback once, and earn royalties on the sales for years to come.
  • Amazon Merch on Demand : Design and upload your designs once, and earn royalties every time your design is sold.

Final thoughts and next steps

Learning how to sell on Amazon without inventory is an attractive proposition that can save you time, reduce risk, and lower overhead costs.

However, this kind of selling requires careful strategy and execution. By understanding the pros and cons of FBA, FBM, and dropshipping, you can choose the best path for your Amazon business.

Start small, learn as you go, and scale your operations as you grow your sales.

SkuVault Core’s inventory management software can help you remotely manage inventory effectively across all your sales channels, improve operational efficiency, and ultimately boost your profitability.

Matt Kenyon

Matt Kenyon

Matt has been helping businesses succeed with exceptional content, lead gen, and B2B copywriting for the last decade. When he’s not typing words for humans (that Google loves), Matt can be found producing music, peeking at a horror flick between his fingers, or spending quality time with his wife and kids.

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How to Sell on Amazon Without Inventory For Beginners

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Holding products in your own warehouse can be expensive, especially when you own a small business. However, it is possible to sell items on Amazon without keeping inventory. In the article below, we will discuss how to start selling products without big expenses or the need for warehousing.

How to Start Selling on Amazon Without Inventory

Running an Amazon business without inventory is commonly known as dropshipping. In simple words, the process works like this: a seller receives orders on Amazon and forwards them to a supplier. The supplier then ships the products l directly to the seller’s customers. With this business model, there’s no need to deal with managing shipping or inventory. 

Just remember to adhere to Amazon’s Dropshipping Policy, which states that you must be the seller on record, and be sure to include your information and branding on all packaging.

Outsourcing product fulfillment has a number of advantages for beginners and experienced merchants: it’s cost-effective, involves lower financial risks, and provides sellers with greater flexibility. 

How to Sell on Amazon Without Having Inventory

In a nutshell, dropshipping through Amazon involves the following steps:

Finding a product to sell

Searching for dropshipping or wholesale suppliers

Labeling and shipping

Adding products to Amazon

Managing orders

That’s it! It’s not as complicated as having your own warehouse or choosing a shipping provider. Let’s dive into each step in greater detail.

Step 2. Find Dropshipping or Wholesale Suppliers

The next step in the process is finding suppliers. Sellers usually prefer the most trustworthy suppliers who offer the lowest prices. Let’s first discuss how you can find them.

How to Find Trustworthy Suppliers

You can do the research yourself, or rely on lists collected by professional and reputable companies. The choice is yours. Below you can find the main methods of searching for reliable suppliers.

Manual research and comparison: You can look for reputable directories, online marketplaces, and industry-specific platforms with suppliers. Compare them based on their product range, reviews, ratings, and customer feedback. Find this information on platforms like Google, Trustpilot, and industry-specific forums to see what other sellers and customers have to say about their experience.

Networking and recommendations: Connect with other dropshippers or eCommerce entrepreneurs in your niche, read forums, and find communities devoted to this topic. By using this method, you might be able to find reliable suppliers based on the experiences of professional sellers.

Criteria for Reliable Suppliers

Here are some important criteria to consider when looking for quality suppliers on your own.

Trustworthiness and reputation. Look for suppliers with a positive reputation in the industry. Check for customer reviews, testimonials, and ratings to evaluate their reliability. You can use Google, Trustpilot, and other platforms to find this information.

Product quality. Ensure that the supplier offers high-quality products that meet your standards. Request product samples to evaluate the physical product's quality. If this is not an option, read verified reliable reviews.

Competitive pricing. Compare prices with other suppliers in the market. Avoid suppliers with unusually low prices, as this could indicate poor quality or a potential scam.

Shipping and delivery times. Check the supplier's shipping options and delivery times. Fast and reliable carrying is always crucial for customer satisfaction.

Communication and responsiveness. A good supplier should be responsive to inquiries and provide clear communication throughout the process, as your customers will demand that as well.

There are many other criteria to consider before paying for your first order. For example, the supplier’s Minimum Order Quantities, return policy, legal compliance, communication language, and location. Based on  all of this information, it’s possible to make well-informed decisions and build strong relationships with trustworthy suppliers for your business.

How to Negotiate with Suppliers

If you decide to manually find suppliers yourself, make sure you know how to communicate with them effectively, gain all the necessary information, and get the best deal.

Do Your Research. Before entering negotiations, gather information about the supplier, their store, and the market. Understand their pricing, terms, and any available alternatives. 

Stay Professional and Respectful. Avoid being aggressive or confrontational, as this can harm the relationship.

Explore Bundling or Volume Discounts. Learn about discounts for larger order volumes or bundling multiple products.

Get Multiple Quotes. Obtain quotes from multiple suppliers to leverage better deals and create competition.

Put Agreements in Writing. Ensure all terms are documented in a written contract to avoid misunderstandings in the future.

Step 3. Labeling and Shipping

One of the key aspects to consider when dropshipping is labeling and shipping. Some suppliers offer the option to ship products directly to your customers under your business name, in line with Amazon’s dropshipping policies. This step involves ensuring that the packaging and shipping labels accurately reflect your brand and business identity.

To implement this effectively, be sure to communicate with your suppliers and provide them with your company logo, shipping address, and any specific packaging requirements. Double-check the accuracy of the shipping address to prevent delivery issues. Monitor the shipping status and keep your customers updated on tracking information proactively.

Working with suppliers who support Amazon dropshipping policies will help you successfuly become an Amazon seller and deliver a consistent experience to your customers. Finally, you will have an opportunity to effectively sell on Amazon without buying any products.

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Step 4. Add Products to Amazon

You have two main options for adding products to Amazon: creating a new listing or adding the product to an existing one. Let’s examine these two processes in greater detail.

Adding Products to an Existing Listing

1. Search for the Product. Log in to your Amazon Seller Central account. Select ‘Add Product’. Search for the product you want to add using its UPC, EAN, ISBN, or ASIN.

2. Once you’ve found the correct product, click on it to match with the existing listing.

3. Enter the quantity of the product and set the price.

4. Upload high-quality images or video, and write a detailed and accurate product description.

5. Submit the Listing. Your product should now be live and available for purchase on Amazon.

Creating a New Listing

1. Check for existing listings. Before creating a new listing, search Amazon to ensure that a similar product doesn't already exist. It's best to list your product under an existing listing whenever possible to benefit from the product's reviews and ranking.

2. Choose a Category. This ensures that your product will appear in relevant searches and filters.

3. In your Amazon Seller Central account select ‘Add a Product.’ Choose ‘Create a new product listing.’

4. Enter product details. Fill in the product title, brand, manufacturer, color, size, and other relevant attributes. Write an accurate product description and upload clear images.

5. Set pricing and inventory.

6. Review all of the details and click ‘Submit’ to create the new listing. It will undergo Amazon's review process, after which it will be live and you’ll be able to sell products as soon as this step is complete.

Monitor your product listings regularly, and remember to respond to customer inquiries promptly.

Step 5. Manage Dropshipping Orders

These are the steps for sellers to follow in order to manage orders effectively and develop a successful business:

The customer places an order on Amazon.

The seller forwards the order to a supplier, and provides the customer's shipping address.

The supplier processes the order and proceeds to packaging. Then they ship the product directly to the customer.

The seller receives the tracking information and sees when the product is delivered directly to the customer's doorstep.

That’s it! The seller’s involvement in the process ends here.

But always remember that your biggest responsibility is to handle any customer inquiries, perform client support, keep them updated on the status of their order, and take care of any potential returns or exchanges.

Amazon Dropshipping vs. Amazon FBA

You can make money on Amazon without keeping your products in stock just by buying products from a supplier and sending them to Amazon warehouses. This method is called FBA, or Fulfillment by Amazon.

When a customer places an order, Amazon picks, packs, and ships the product directly to the customer on behalf of the seller. Additionally, Amazon handles all aspects of customer service and returns, and manages the storage and inventory of the products.

Amazon FBA has a number of benefits:

It takes care of the entire fulfillment process , saving sellers time and effort. This includes picking, packing, and shipping orders to customers promptly and efficiently.

Amazon FBA allows sellers to reach a wider audience , including international customers, as Amazon can fulfill orders across various countries and continents.

FBA allows sellers to scale their business easily without worrying about logistics and fulfillment. As your business grows, Amazon takes care of the increased order volume.

Amazon's algorithm often favors products fulfilled by Amazon in the Buy Box . This can lead to increased visibility and higher sales.

Amazon FBA provides a convenient and reliable solution for sellers looking to sell without inventory. It offers numerous benefits, as well as disadvantages for businesses regardless of what type of product you sell, from shirts to cookware. So, it’s up to you to decide which model best suits your needs.

Selling on Amazon without buying inventory is possible and can be quite beneficial for any type of vendor. Dropshipping offers numerous advantages, including cost-effectiveness, lower financial risk, and greater flexibility. In this article, we have outlined how to sell on Amazon without inventory, find the right products, connect with trustworthy suppliers, manage labeling and shipping, and add products to Amazon.

By utilizing tools like AMZScout, sellers can simplify their product research process and identify profitable stuff for this kind of Amazon business.

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How to Earn on Amazon Without Inventory

How to Sell on Amazon Without Inventory: Learn All The Steps

Amazon is not to be available only for people who have joined the company or have sent their merchandise direct into Amazon warehouses. Actually, learning the best ways to market through Amazon in a non-stock environment is among the most sought-after trends for those looking to shift to eCommerce sales, even if they have very little or no experience in sales online.

Learning how to sell your products on Amazon with no inventory can simplify the creation of the products and launch procedures so that you can begin earning money in the shortest time possible. Utilizing this beginner's guide to sell your products on Amazon and discover ways to earn an income that is passive or full-time without the need to store your own goods.

Fulfilment through Amazon (FBA)

The most well-known way to sell items on Amazon is through Fulfillment by Amazon, commonly referred to as FBA. FBA allows users to sell items by shipping directly through Amazon warehouses. After the goods have arrived, Amazon takes care of everything else, from storage in warehouses and organizing them to logistics for shipping and delivery confirmations.

Pros and Cons of FBA

Utilizing FBA provides many advantages but also drawbacks. Some of the most well-known benefits of using Fulfillment by Amazon are:

  • The ability to ship products directly to Amazon and eliminate the requirement for warehouse space.
  • Enhancing brand awareness for your items by using Amazon's prestigious brand
  • 24/7 support for customers directly from Amazon.
  • Gain access to the most extensive global fulfilment networks.
  • A complete fulfilment and shipping solution allows you to concentrate on other aspects of your business.
  • Flexible solutions that allow you to operate at your own pace even if you're not experienced in selling on the internet in any capacity.

There are many benefits for FBA, but there are also some disadvantages to FBA, such as:

  • Commission and referral fees for the sale of individual items
  • The inability to receive notifications when inventory is low will require you to keep track of the items in inventory.
  • Storage charges can get expensive according to the items you store vs. the rate you sell them and the profit margin.
  • There is no control of fees and pricing because they are usually dependent on markets that are relevant to them.

How to Get Started With FBA

Getting started with FBA is easy and doesn't require any lengthy instruction or training. For the first step, you'll be required to follow these steps

  • Set up an Amazon seller's profile. From here, you'll be able to find out more about selling your products on Amazon and the various fees and monthly costs you could have to pay based on the platform you choose to make use of.
  • You can set up your FBA account through Amazon's Seller Account Portal.
  • List your products and specify the kind of FBA inventory you plan to ship directly into the Amazon warehouse.
  • Prepare your items by following Amazon's guidelines for packing. Review Amazon FBA's delivery rates and alternatives. Also, you can look over your most current Amazon route and requirements for shipping to determine the steps you have to take based on your product and your current location.

Dropship on Amazon

 Dropshipping is a different method of selling online products without having to manage inventory. It has been in use for a long time, even before Amazon was created.

 Dropshipping on Amazon is the process of marketing and selling items that you don't keep or manage yourself. Through selling products through dropshipping, it is usually solely responsible for advertising and selling the product. The dropshipping service you choose will assist you in fulfilling your order and managing the inventory they're responsible for all the time.

Pros and Cons of Dropshipping

Dropshipping can provide a variety of advantages which makes it a desirable business model, such as:

  • Cost-effective and low-cost starting using a dropshipping service to sell products is one of the cheapest eCommerce options available to start selling items with profits.
  • Test faster products: Testing the efficacy of products by this method is significantly faster than making your own products and buying too much stock.
  • Get valuable insights: Discover more about the internet customers you serve and the demographics you're trying to reach through selling various dropshipping items as you collect data and analysis in real time.

Dropshipping has its own disadvantages on Amazon, which might be:

  • Lack of flexibility: You won't have any flexibility in how you develop your products as you're limited to a different manufacturer's product.
  • It's a hit-or-miss situation. The dropshipping site's products are not guaranteed to work or please customers.
  • Competitive: The industry of dropshipping is awash with competition.

Starting with dropshipping is a process that requires the ability to choose the right market, investigate your current competitors, and then locate an online dropshipping service that will be reliable and rely on.

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Third-Party Logistics (3PL)

If you can't locate an Amazon No-Product platform suitable for you, or if you're seeking alternatives, look into the services of a third-party logistics (3PL) business.

A 3PL is an organization or service which provides eCommerce professionals support in managing inventory. Instead of using Amazon or dropshipping services to store inventory, the 3PL solution is all-inclusive third-party Warehouse storage and shipping solution.

Here's what a 3PL service is:

  • Warehouse storage and inventory management
  • Receiving, collecting and inspecting
  • Pick & Pack services
  • LTL, FTL shipping solutions
  • Reverse logistics

The benefits of 3PL

  • Management freedom is increased
  • Make time to concentrate on other aspects of your business

Pros and cons of the use of 3PL solutions:

  • Insufficient control over physical inventory
  • A lack of flexibility concerning the distribution of the product
  • Inability to ensure quality control constantly
  • It could be costly, to begin with.

To begin using a 3PL solution, you must first study the market you're hoping to reach and reliable third-party logistics firms within your region. Consider the volume of revenue you plan to generate and the kind of shipping and features offered prior to selecting your preferred 3PL solution.

Sell Digital Products on Amazon

Another way to earn money from Amazon without inventory is by selling your own digital items.

What exactly are Digital Products?

Digital products could range from audiobooks that can be downloaded to digital copies of books and print-on-demand items like selling t-shirts through Amazon or prints of artwork.

Benefits of Selling Digital Products

  • There are no or few charges for investment and/or startup costs.
  • It is accessible to everyone, including those with little or no eCommerce experience.
  • Ability to determine your prices and profit margins

Pros and Cons of Selling Digital Products

  • Highly competitive and saturated in specific markets
  • A challenge to establish the attention and reach of the market when you are first getting into the market
  • No guarantee of sales or performance
  • High commission fees

Selling digital items on Amazon is feasible as a traditional seller when you plan to sell audiobooks, books, or documents. If you wish to sell print-on-demand products like t-shirts or coffee mugs, you must sign up for third-party POD services. It is then possible to link your POD service to the account you have on Amazon account to market your print-on-demand items.

The Wrapping Up

Learning the best ways to market on Amazon with no inventory or through an integrated Amazon platform will aid you in deciding what route is best for your next business venture. From using the FBA service to utilizing dropshipping, There are endless possibilities to create an impressive six-figure Amazon business with no inventory when you're comfortable with the process.

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How To Sell on Amazon Without Inventory: A Comprehensive Guide

Table of contents, what are the methods of selling on amazon without inventory, how to get started, great tips for success on selling on amazon without inventory, final notes.

Eager to leverage Amazon’s massive customer base without the headache of handling inventory?

Selling on Amazon presents a promising avenue for entrepreneurs, yet managing physical stock often poses daunting challenges. Costs, storage, and logistics can be significant hurdles for newcomers or small-scale sellers.

Consider dropshipping, a method allowing you to sell on Amazon without inventory. Instead, you list the product, and your supplier handles delivery upon purchase. This strategy eliminates inventory management, lowers startup costs, and redirects your focus toward customer service and business growth.

By minimizing risk, expanding product variety, and freeing resources, selling on Amazon without inventory could be your key to a thriving online business.

A screenshot of Amazon Website

Curious about how selling on Amazon without inventory works? Some popular methods can enable you to do just this, significantly simplifying the selling process.

Let’s explore Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) to understand selling without inventory.

FBA (Fulfillment by Amazon)

With FBA, you store products in Amazon’s centers, and they handle storage, packaging, and shipping. This eliminates inventory stress and qualifies your products for Amazon Prime. However, account for storage and fulfillment fees in your pricing.

FBM (Fulfillment by Merchant)

FBM lets you list products on Amazon while you handle fulfillment, which is ideal for dropshipping. This method allows selling without inventory, with your supplier shipping directly to customers. Remember, you’re responsible for delivery timeliness and customer service.

Other Methods (Print on Demand, Dropshipping)

  • Print on Demand (POD): You create and upload your designs to a POD platform. Then, when someone orders, the product gets printed and shipped directly to them. It’s like having your custom-made products without the hassle of inventory management or upfront production costs.
  • Dropshipping: Dropshipping is all about convenience and flexibility. You team up with suppliers who store and ship the products. Then, when an order rolls in, you simply send the details to your supplier, who handles the rest.

Ready to dive into selling on Amazon without inventory? Let’s walk through the steps:

  • Setting up an FBA or FBM Account: Create an Amazon Seller account, select your selling plan, enroll in FBA, or configure your account for FBM fulfillment.
  • Creating Listings for Your Products: Sign in to Seller Central, go to “Inventory,” click “Add a Product,” and provide all necessary details for each product.
  • Prepping Your Products for Shipping: For FBA, follow Amazon’s guidelines for labeling, packaging, and product requirements. For FBM, organize your inventory for efficient fulfillment and consider using reliable packaging materials.
  • Choosing Shipping Options: If using FBA, Amazon handles shipping. If using FBM, compare carrier options based on speed, tracking, and cost to ensure timely and reliable delivery.

Selling on Amazon without inventory brings excellent opportunities for success. You can offer various products without physical storage limitations, catering to diverse customer preferences. The dropshipping model also reduces the risk of overstocking and allows you to scale your business quickly, adapting to market trends. To succeed, focus on product selection and differentiation. Research profitable niches and optimize your listings with compelling descriptions and relevant keywords. Prioritize excellent customer service, promptly addressing inquiries and ensuring efficient order fulfillment. Building a solid reliability and customer satisfaction reputation will boost your seller ratings and attract repeat business. You can pave the way for a thriving and profitable business on Amazon’s platform with strategic product selection, exceptional customer service, and the advantages of selling without inventory.

Researching Profitable Product Categories

When researching profitable product categories for selling on Amazon without inventory, consider these strategies:

  • Amazon Best Seller Rank: Use Amazon’s Best Seller Rank to identify top-performing products in specific categories. Products with a lower rank indicate higher sales volume, making them potentially profitable opportunities for your business.
  • Keyword Ranking Research Tools: Utilize keyword ranking research tools, like Jungle Scout or Helium 10, to analyze keyword popularity, competition, and potential demand for products. These tools provide valuable insights into search trends and help you identify profitable keywords to optimize your listings.
  • Trending and Seasonal Products: Monitor trends and seasonal fluctuations to identify products that experience high demand during specific times of the year. Capitalizing on these trends allows you to tap into profitable market opportunities and maximize your sales potential.
  • Niche Market Analysis: Explore niche markets and identify untapped opportunities where competition is low but demand exists. Focusing on a niche allows you to cater to a specific audience, establish yourself as an expert, and achieve higher profit margins.
  • Product Reviews: Analyze product reviews to gain insights into customer satisfaction, identify pain points, and uncover potential product improvements or gaps in the market. Addressing customer feedback and enhancing your product offering can improve your competitive advantage and attract more buyers.
  • Social Media and Online Communities: Observe social media platforms and online communities related to specific product categories to understand discussions, trends, and customer preferences. Engaging with these communities can provide valuable insights, help you build a loyal customer base, and stay ahead of emerging market trends.
  • Competitor Analysis: Study successful competitors to identify their best-selling products, pricing strategies, and unique selling points. Analyzing your competitors allows you to gain insights, differentiate your offerings, and position yourself strategically in the market. Product Variation: Identify products with potential for customization, variations, or bundling to differentiate yourself and meet unique customer needs. Offering unique product variations allows you to stand out, attract a broader customer base, and increase your profit margins.
  • Keyword Research: Conduct thorough keyword research to discover popular search terms related to your product category, allowing you to optimize your listings for better visibility. By incorporating relevant keywords into your product titles, descriptions, and backend search terms, you can increase your chances of appearing in search results and driving more organic traffic.
  • Profit Margin Analysis: Evaluate the potential profit margins of products by considering factors such as the cost of goods, fees, and shipping expenses to ensure profitability. Calculating your profit margins accurately helps you make informed pricing decisions and prioritize products with the highest potential for profitability.

Starting with a Modest Inventory

If you’re starting with a modest inventory when selling on Amazon, consider these helpful tips:

  • Focus on High-Demand Products: Prioritize products with high demand and sales potential to maximize the impact of your limited inventory. By offering products that customers actively seek, you can increase your chances of generating sales and maximizing your profitability.
  • Start with a Niche: Target a specific niche market to stand out from the competition and create a loyal customer base. Focusing on a niche allows you to become an expert in that particular area, better understand your customers’ needs, and tailor your products and marketing efforts accordingly.
  • Test with Small Quantities: Begin by testing the market with small quantities of products to assess demand and profitability before scaling up. This approach helps you minimize the risk of investing heavily in inventory that may need to perform better. It allows you to make data-driven decisions based on real-world customer responses.
  • Optimize Product Listings: Craft compelling and detailed product listings with eye-catching images, informative descriptions, and relevant keywords to attract potential customers. Optimizing your product listings improves your visibility in search results, grabs the attention of shoppers, and increases the likelihood of conversions.
  • Monitor Competitor Pricing: Keep a close eye on competitor pricing to ensure your products are competitively priced while maintaining profitability. By staying informed about the market landscape, you can adjust your pricing strategy accordingly to remain attractive to customers while preserving your profit margins.
  • Maximize Marketing Efforts: Leverage social media, influencer partnerships, and targeted advertising to promote your products and reach a wider audience. Effective marketing efforts increase brand awareness, drive traffic to your product listings, and create opportunities for sales growth.
  • Offer Bundles or Packages: Create product bundles or packages to increase the perceived value and provide customers with more purchasing options. Bundling complementary products or offering package deals not only enhances the customer’s shopping experience but also increases the average order value and boosts your sales revenue.
  • Implement Inventory Management Tools: Utilize inventory management tools or software to keep track of your stock levels and ensure efficient order fulfillment. Effective inventory management minimizes the risk of stockouts, allows you to meet customer demand promptly, and optimizes your operational efficiency.
  • Establish Strong Supplier Relationships: Develop solid relationships with reliable suppliers to secure consistent inventory availability and negotiate better pricing terms. Strong supplier relationships help you maintain a steady supply of products, reduce costs, and ensure a smooth and reliable flow of inventory.
  • Gather Customer Feedback: Actively seek and listen to customer feedback to identify areas for improvement and make necessary adjustments to enhance the customer experience. Understanding your customers’ preferences and addressing their concerns or suggestions can build stronger relationships, foster loyalty, and drive repeat business.

Maximizing Profit Margins

To maximize profit margins when selling on Amazon without inventory, consider implementing these strategies:

  • Price Competitively: Research and analyze competitor pricing to ensure your products are competitively priced while still maintaining a healthy profit margin.
  • Negotiate with Suppliers: Establish strong relationships with suppliers and negotiate favorable pricing terms to reduce product costs and increase profit margins.
  • Optimize Product Listings: Craft persuasive and informative product listings with high-quality images, detailed descriptions, and targeted keywords to increase conversions and maximize sales.
  • Reduce Shipping Costs: Explore different shipping options, negotiate shipping rates, and consider utilizing Amazon’s discounted shipping services to minimize shipping expenses and improve profitability.
  • Offer Upsells and Cross-Sells: Encourage customers to purchase additional products by offering upsells or cross-sells during the checkout process, increasing the average order value and boosting profits.
  • Minimize Returns and Refunds: Provide accurate product descriptions, images, and sizing information to reduce the likelihood of returns and refunds, which can eat into your profit margins.
  • Optimize Advertising Campaigns: Continuously monitor and optimize your Amazon advertising campaigns to ensure you’re getting the most out of your advertising budget and maximizing return on investment (ROI).
  • Manage Inventory Efficiently: Implement effective inventory management practices to minimize the risk of overstocking or running out of stock, optimizing your cash flow and reducing storage costs.
  • Leverage Product Bundling: Create bundles or product packages to increase the perceived value of your offerings, allowing you to charge a premium price and boost profit margins.
  • Monitor Expenses: Keep a close eye on your business expenses, regularly review and trim unnecessary costs, and seek opportunities to streamline operations and increase profitability.

Avoiding Common Pitfalls

To avoid common pitfalls when selling on Amazon without inventory, consider the following:

  • Inadequate Market Research: Conduct thorough market research to understand customer demand, competition, and potential pitfalls before diving into a product category.
  • Poor Product Differentiation: Stand out from the competition by offering unique product features, packaging, or branding to capture customers’ attention and loyalty.
  • Ignoring Customer Reviews and Feedback: Regularly monitor and respond to customer reviews and feedback, promptly addressing any concerns or issues to maintain a positive brand reputation.
  • Ineffective Listing Optimization: Optimize your product listings with relevant keywords, persuasive descriptions, and high-quality images to enhance visibility and attract potential customers.
  • Insufficient Inventory Management: Implement efficient inventory management practices to avoid stockouts or excess inventory, which can result in lost sales or increased storage costs.
  • Ignoring Amazon’s Policies and Guidelines: Stay updated on Amazon’s policies and guidelines to ensure compliance, avoiding potential penalties or account suspensions.
  • Lack of Customer Support: Provide excellent customer support, promptly addressing inquiries or issues to build trust and foster positive customer experiences.
  • Inaccurate Pricing Strategies: Price products strategically, considering factors, such as production costs, competition, and market demand, to maximize profitability and sales.
  • Neglecting Advertising and Marketing: Allocate resources to effectively promote your products through Amazon advertising, social media, and other marketing channels to reach a wider audience.
  • Failure to Adapt and Innovate: Stay agile and adaptable, continuously monitoring market trends, customer preferences, and competitor strategies to make necessary adjustments and stay ahead of the game.

Can I sell on Amazon without holding any inventory? Yes, you can sell on Amazon without inventory using methods like Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), Print on Demand (POD), and Dropshipping. These methods allow you to list and sell products without the need for physical storage or shipping.

How do I choose between FBA and FBM?

The decision between FBA and FBM depends on your business goals and preferences. FBA offers convenience and scalability with Amazon handling storage, packaging, and shipping. FBM gives you more control over fulfillment but requires managing storage and shipping yourself. Consider factors like costs, storage needs, and the level of control you desire before making a choice.

How do I research profitable product categories?

Researching profitable product categories involves analyzing factors like demand, competition, and market trends. Then utilize tools like Amazon’s Best Seller Rank, keyword research tools, and social media platforms to identify high-demand products and niche markets. Additionally, keep an eye on customer reviews, competitor analysis, and profit margin analysis to make informed decisions.

What are some tips for maximizing profit margins?

To maximize profit margins, focus on competitive pricing, negotiate with suppliers, optimize product listings, reduce shipping costs, and offer upsells or cross-sells. Efficient inventory management, effective advertising campaigns, and careful expense monitoring are also crucial. Finally, constantly evaluate and adapt your strategies to improve profitability.

What are common pitfalls to avoid when selling on Amazon without inventory?

Common pitfalls to avoid include inadequate market research, poor product differentiation, ignoring customer reviews and feedback, ineffective listing optimization, and poor inventory management. It’s essential to stay updated on Amazon’s policies, provide excellent customer support, and continuously adapt to market trends and competition.

Can I use multiple methods, such as FBA and Dropshipping, to sell on Amazon?

Yes! You can combine different methods to diversify your product offerings and optimize your selling strategy. For example, you can use FBA for certain products and Dropshipping for others based on factors like profitability, fulfillment requirements, and customer demand.

Do I need a professional seller account to sell on Amazon without inventory?

Yes, to access features like FBA, you need a professional seller account. This account type allows you to sell an unlimited number of products and provides additional tools and benefits to enhance your selling experience.

How do I handle returns and customer service when selling without inventory?

If you’re using FBA, Amazon handles returns and customer service on your behalf. For FBM or Dropshipping, it’s your responsibility to address customer inquiries, handle returns, and provide excellent customer support. Prompt and effective communication is vital to maintaining customer satisfaction.

Can I sell internationally without holding inventory?

Yes, selling on Amazon without inventory enables you to expand globally. With FBA’s international fulfillment services, you can reach customers in various countries without the need for separate inventory management. It provides an opportunity to access new markets and increase your sales potential.

Are there any restrictions on the types of products I can sell without inventory on Amazon?

While Amazon has certain product category restrictions and guidelines, selling without inventory doesn’t impose additional limitations. However, it’s essential to comply with product quality standards, legal requirements, and Amazon’s policies to ensure a smooth selling experience and maintain customer trust.

Selling on Amazon without inventory opens incredible opportunities for entrepreneurs. Methods like FBA, FBM, POD, and Dropshipping tap into Amazon’s customer base and offer reduced risk, flexibility, and scalability.

Take action now, sign up for an FBA or FBM account, and embrace the freedom from inventory management. Start your journey of selling on Amazon without inventory, and unleash your entrepreneurial potential in the world of e-commerce.

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How to Sell on Amazon Without Inventory: Easy Options to Make A Profit

amazon business model no inventory

Last updated on December 4th, 2023

amazon business model no inventory

Are you looking to learn how to sell on Amazon without inventory so you can break into the lucrative world of ecommerce? This is a question a lot of aspiring entrepreneurs like you are asking.

Selling on Amazon is a quick way for individuals and businesses to reach a vast customer base. However, managing inventory is challenging, especially for small-scale sellers and those just starting.

Fortunately, there are methods available that allow you to sell on Amazon without maintaining an inventory apart from selling digital products. Let us introduce you to several methods without keeping a single item in your storage.

Table of Contents

Selling Models for Amazon Without Inventory

Keeping inventory may get increasingly challenging as ecommerce sales ramp up, so a practical choice is to find ways to avoid holding inventory in the first place.

Note that the options recommended below don't involve the method to sell digital products, as this can be another topic worth discussing in a separate article. With that said, here are the methods you can use for your Amazon business.

An infographic containing selling models for Amazon without inventory: FBA, dropshipping, retail arbitrage, 3rd-party fulfillment center.

Fulfillment by Amazon (FBA)

FBA is the most convenient option if you want to efficiently sell on Amazon without the need to manage inventory themselves. Through this service, you can store your products in Amazon's fulfillment centers and let Amazon handle all the logistics and shipping.

To start with FBA , you must first open a seller account. After this, you can send your products to Amazon's fulfillment centers. When an order arrives, Amazon will pick, pack, and ship the products directly to the buyer.

This service enables you to reach millions of Amazon Prime customers by offering fast and reliable Prime shipping and customer service options. You can also keep track of your ecommerce sales, manage your FBA inventory, and monitor the performance of your business through the FBA Seller Dashboard.

Dropshipping

Dropshipping is a method where you do not keep the products you sell in stock. Instead, if an order comes in, you will forward it to a third-party supplier, who then ships the product directly to the customer.

In this method, you may create a dropshipping website offering various non-digital products, such as clothing or accessories. As customers browse the site and make purchases, you don’t need to store these items physically. Instead, the orders are passed along to a dropshipping service that handles the delivery of the products to the end customer.

By using a dropshipping model , you can benefit from lower startup costs and can focus on marketing and customer service. It is important to note that product quality and timely delivery are reliant on the chosen dropshipping supplier, so researching and selecting a reliable partner is crucial for success.

Retail Arbitrage

Retail arbitrage is when you buy discounted or marked-down items from retail stores and then sell them online. You can sell the products on Amazon at the prevailing market price. The difference between the purchase price and the selling price becomes the profit margin, allowing you to earn money without maintaining your inventory or warehouse storage.

Retail arbitrage can be time-consuming though, requiring constant scouting of retail stores for suitable products. It may also involve negotiating with the store's management for additional discounts or price reductions. It's crucial to consider product quality, shipping, and Amazon's fees when calculating potential returns on investment.

Third-Party Fulfillment Center

A third-party fulfillment center is another excellent solution if you want to sell on Amazon without physically managing your inventory. These logistics providers take care of warehousing, fulfillment, and shipment of products on your behalf. By using third-party inventory solutions, reducing overhead costs and eliminating the need for storage facilities. You can also pay attention to your business’ marketing and customer service.

Third-party logistics (3PL) providers purchase inventory from sellers and store it in their warehouses, alleviating the need for you to have your own. When an order is placed on Amazon, the 3PL provider fulfills the product and ships it directly to the customer.

Challenges and Solutions When Selling Without Inventory

Despite being practical and efficient, selling without keeping inventory has its challenges. Knowing these issues and how to manage them will help you put out fires in the logistics and inventory aspect of your business. As a result, you can pay attention to managing your Amazon account while ensuring profits flow.

Managing Suppliers

One challenge when running an online business without inventory is effectively managing suppliers. This becomes even more crucial when using Amazon's fulfillment centers for your products. As an Amazon seller, it's important to establish a steady supplier who can deliver the items you need promptly. Some of our recommended solutions are:

By doing these, you can ensure a consistent product supply that matches customer demand and maintains smooth operations.

Maintaining Quality Control

Without inventory, quality control can be challenging as supply, fulfillment, and shipping are sourced to a 3rd party. To maintain quality control, consider the following solutions:

Finding the Right Price

Striking the right balance between having competitive pricing and maintaining profitability can be tricky, especially when selling without inventory. Here are some solutions to help find the optimal product price point:

Managing Customer Demand

An essential aspect of any online business is generating buyer demand when it’s low and meeting it when it’s high, which can be particularly challenging when selling without inventory. To continue making sure demand meets supply as an Amazon seller, consider the following solutions:

Pros and Cons of Selling Without Inventory

Selling on Amazon without inventory is a strategy you can adopt to save on storage costs. It's an excellent way to earn money fast, but you still have to weigh its benefits and drawbacks. Let us present the pros and cons of selling without inventory here.

An infographic containing the pros and cons of selling without inventory on Amazon

  • Saves Costs: By not having inventory, you can eliminate storage expenses and decrease financial risks associated with unsold products.
  • Flexiblee: With no need to manage physical inventory, you can quickly adapt your offers to meet changing market demands.
  • Time-Saving: Since the supplier handles the logistics, you save time and can allot it in other revenue-generating business activities.
  • Has a Wider Product Selection: Without inventory concerns, you can offer a larger range of products by collaborating with various suppliers.
  • Less Fulfillment Control: Relying on third-party suppliers can lead to errors or delayed shipping, negatively impacting your reputation.
  • Tight Competition: The ease of selling without inventory can lead to increased competition, as barriers to entry are significantly reduced.
  • Amazon Policy Compliance: You must navigate and adhere to Amazon's strict policies regarding dropshipping and partnering with suppliers or risk account suspension.

Without Inventory, You Can Focus On Your Amazon Business

One significant advantage of selling on Amazon without inventory is the opportunity to focus more on fulfilling and shipping products and devote more time and effort to optimizing product listings and enhancing marketing strategies. It also leads to a much-improved profit margins. With no need to invest in products' physical storage and handling, you can allocate your resources more effectively and expand your online business offers.

Whichever business approach you choose, know that you can work with a team of specialists here at Seller Interactive to help you manage and grow your Amazon store. Our experts can provide invaluable insights and optimize your Amazon business to ensure it continues thriving. If you're ready to earn more without holding inventory, book a call now. Let’s discuss our services to you!

Go from surviving to thriving on Amazon .

amazon business model no inventory

Last updated on December 18th, 2023 Written by Mohamed Aden For Amazon sellers, having a strong marketing strategy is crucial for boosting sales. Having a landing page for Amazon products is a strategy many successful sellers apply, and you can also do. This article will explain what a landing page is and how it can […]

amazon business model no inventory

Last updated on December 13th, 2023 Written by Mohamed Aden The Amazon Best Seller Rank (BSR) is a crucial metric sellers like you should understand to maximize your success on the platform. This ranking system reflects a product's popularity and sales performance against other products in the same category. By grasping the intricacies of BSR, […]

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Last updated on December 11th, 2023 Written by Himanshi Raj In a bustling marketplace like Amazon, every aspect of your online presence matters, and thoughtfully chosen Amazon seller names can be one of the first steps toward building a solid brand. However, coming up with an Amazon seller name is considered trivial for most sellers. […]

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how to sell on Amazon without inventory

How To Sell On Amazon Without Inventory: Step-By-Step Guide

Khyati Hooda

Prepare to embark on a revolutionary journey into the boundless realm of e-commerce, where the traditional concept of inventory takes a backseat. I’ll delve into the exciting world of how to sell on Amazon without inventory.

Whether you opt for dropshipping, FBA, or digital product selling, there are multiple avenues for selling on Amazon without maintaining physical inventory.

Each approach has advantages & disadvantages that underscore the significance of conducting thorough research to determine the most suitable option.

Let us unlock the possibilities hidden within the virtual shelves of Amazon, where imagination meets commerce and your entrepreneurial journey begins.

Welcome to the exciting realm of how to sell on Amazon without inventory.

Key Takeaways

  • Selling on Amazon without inventory employs a business strategy where you don’t stock the products you offer. Instead, when a sale is made, you acquire the item from a third-party source, which is then directly sent to the customer.
  • You can sell on Amazon without inventory using FBA, third-party fulfillment centers, dropshipping, and digital products.
  • Fulfillment by Amazon (FBA) is a service that offers online sellers the convenience of outsourcing storage, packaging, shipping, and customer service aspects of their business.
  • Third-party fulfillment centers provide external solutions for managing your product inventory. These centers store your products, prepare orders for shipment, and oversee the shipping, tracking, and customer service process.
  • Dropshipping is a business approach where the seller needs to retain a physical inventory of the items they sell. Instead, when a customer orders, the seller obtains the product from a third-party supplier or dropshipper, who then ships the product to the customer.
  • Digital products include intangible items created, distributed, and used digitally. They eliminate the need for physical storage and shipping, which can be particularly beneficial for sellers looking to avoid inventory management entirely.
  • In inventory-less selling, common customer service issues revolve around shipping delays, product quality concerns, or incorrect shipments. Fast and effective communication is important in addressing these issues promptly and ensuring customer satisfaction.

Understanding How To Sell On Amazon Without Inventory

Selling on Amazon without inventory is a business approach where the seller doesn’t maintain a stock of the products they offer for sale. This falls under the category of dropshipping, which enables the seller to avoid upfront expenses related to inventory and the requirement for storage space.

how to sell on amazon without inventory

When a customer makes an order, the seller receives the order information. The seller then acquires the product from the third-party supplier & provides the customer’s shipping details.

The third-party supplier handles the packaging and shipping directly to the customer without the involvement of the seller. However, the seller is responsible for customer service that includes addressing questions, complaints, or returns.

Selling on Amazon without maintaining inventory is an appealing concept due to its low startup costs and minimal operational overhead. It enables sellers to offer a diverse range of products without requiring substantial initial capital.

Keep in mind that the success of this business model heavily relies on the reliability and quality of third-party suppliers.

Main Difference Between Selling With Inventory And Selling Without Inventory On Amazon

Selling on Amazon with inventory includes sellers that manage their own inventory. They buy products in advance, store them, list them for sale on Amazon, & oversee the shipping process once a sale is confirmed.

This approach demands a substantial initial investment in inventory & needs storage space & an order fulfillment system.

On the other hand, selling on Amazon without inventory dispenses with these prerequisites. In this model, sellers list products they do not physically possess.

When a customer orders, the seller acquires the product from a third-party supplier, who subsequently ships it directly to the customer. This practice is commonly known as dropshipping.

Now, let us look at the different methods on how to sell on Amazon without inventory.

Proven Methods On How To Sell On Amazon Without Inventory

how to sell on amazon without inventory

There are different methods on how to sell on Amazon without inventory. Let us look at them one by one:

1. Fulfillment by Amazon (FBA)

Amazon FBA stands out as a top choice due to its widely recognized brand, reliability, and substantial resources. It enables sellers to dispatch their products to an Amazon fulfillment center, where all packaging, shipping, and logistical tasks are managed.

how to sell on amazon without inventory

Products can be sent directly to Amazon’s warehouse from your location or a storage facility. Moreover, Amazon is responsible for storage space, packaging, shipping, and handling returns.

FBA provides sellers with the opportunity to leverage Amazon’s extensive logistics network and rapid shipping options, such as Amazon Prime, which can greatly appeal to customers.

However, you should keep in mind that FBA does involve its own expenses, including storage fees and fulfillment fees.

How Does Amazon FBA Service Work?

When sellers craft product listings on Amazon marketplace, they specify their intention to use Amazon FBA for order fulfillment.

The seller then prepares their products for shipment to an Amazon fulfillment center. They dispatch products directly from their own location or a storage facility to the designated Amazon center.

Now, Amazon handles the inspection and warehousing of the products in their warehouses. When a customer orders one of the seller’s items, Amazon takes the lead. They select, package, and ship the product to the customer using their logistics network.

Amazon also manages customer inquiries, returns, and any concerns related to shipping or fulfillment.

You should know that sellers who use Amazon FBA are subject to various fees, including storage, fulfillment, and additional services. These fees are typically debited from the seller’s account on a monthly basis.

Now, let us know how to start with FBA.

Get Started With FBA

You need to follow the given steps to get started with FBA. Here are they:

  • If you want to become an Amazon seller, set up an account. For those who are already sellers, incorporate FBA to fulfill orders.
  • Select the items you want to offer through FBA. Ensure these products align with Amazon’s criteria and suit their storage and shipping procedures.
  • Establish the listings for your products and indicate the specific kind of FBA inventory you plan to send directly to an Amazon warehouse.
  • Prepare your items for shipment by adhering to Amazon’s packaging and labeling prerequisites, including barcode labels for efficient tracking and identification.
  • Craft a pricing strategy that factors in Amazon’s associated fees and the profit margin you aim to achieve.

Pros And Cons Of FBA

Let us see the pros and cons of FBA:

2. Third-Party Fulfillment Centers Or Fulfillment By Merchant (FBM)

Third-party fulfillment centers present outsourced solutions to oversee your product inventory. They store your goods, prepare orders for shipment, and manage the entire shipping, tracking, and customer service workflow.

how to sell on amazon without inventory

Instead of relying on Amazon or a dropshipping service for inventory management, third-party fulfillment centers offer warehousing and shipping alternatives facilitated by an external entity.

This alternative is particularly suitable for sellers who aren’t conducting their sales from their residences or have outgrown their home-based operations and seek assistance in efficiently managing substantial order quantities.

Fulfillment By Merchant (FBM) needs dropshipping items or third-party inventory solutions, as your merchandise will not be stored or processed within Amazon’s fulfillment centers.

The success of an FBM business largely depends on the quality of its partnerships. Before embracing this model, you need to conduct thorough research on your target audience & identify reputable third-party solutions.

Ascertain whether the services offered by these third-party solutions align with your business needs, especially with regard to shipping to your desired destinations.

How Does Third-Party Fulfillment Work?

First, sellers choose between operating as an Amazon dropshipping store or partnering with third-party logistics providers to manage logistics and fulfillment.

Then, they establish their storefronts on Amazon and offer products for sale.

When customers make purchases, logistics is delegated to the dropshipping supplier, print provider, or 3PL.

Now, let us look at how to get started with third-party fulfillment.

Get Started With Third-Party Fulfillment

Follow the given steps to get started with third-party fulfillment:

  • Enroll as an Amazon seller and select the Fulfillment by Merchant (FBM) alternative.
  • Identify a trustworthy third-party fulfillment provider and establish a collaborative relationship.
  • Send your merchandise to the storage facility of the chosen third-party fulfillment.
  • Create product listings on Amazon, designating the FBM shipping method.
  • When a customer makes a purchase, third-party fulfillment takes charge of warehousing, packing, shipping, and customer support. You receive payment for your sales after deductions for Amazon’s fees and the fees charged by third-party fulfillment.

Pros and Cons of Third-party Fulfillment

Let us see the pros and cons of third-party fulfillment:

3. Dropshipping On Amazon

Dropshipping is a commerce approach wherein an internet retailer (the seller) doesn’t maintain a physical inventory of the items they offer for sale.

how to sell on amazon without inventory

Instead, when a customer makes a purchase, the seller procures the product from a third-party supplier or manufacturer (the dropshipper), who subsequently ships the product directly to the customer.

When you engage in dropshipping on Amazon , it promotes and sells products without storage or upkeep. Your main responsibilities usually revolve around marketing & sales.

The dropshipping partner takes care of order fulfillment and ensures the consistent upkeep of their inventory.

Engaging in dropshipping allows you to expand your sales across various channels that range from independent websites to online marketplaces.

How Does Dropshipping Work?

Sellers conduct thorough product research and search for global dropshipping suppliers who offer specific merchandise for sale. After that, they create listings that feature these products on various platforms such as online marketplaces, their own web stores, or Amazon.

Now, the sellers develop a marketing strategy to bring these products to the attention of potential customers. When a customer makes purchases from the dropshipping website, the dropshipping supplier takes charge of shipping the products directly to the end customers.

Now, let us know how to get started with dropshipping on Amazon.

Get Started With Dropshipping On Amazon

You need to follow the given steps to get started with dropshipping. Here are they:

  • Enroll as an Amazon seller and choose the Fulfillment by Merchant (FBM).
  • Locate a trustworthy supplier that provides dropshipping services.
  • Publish your product listings on Amazon, specifying FBM as the shipping method.
  • Once an order is made, the supplier directly ships the product to the customer.
  • You manage customer service tasks and obtain payment for your sales with Amazon’s fees deducted.

Pros and Cons of Dropshipping

4. Sell Digital Products On Amazon

Digital products include intangible items crafted, disseminated, and utilized in a digital medium. They lack a tangible form and are transmitted electronically.

You can offer digital products on Amazon, such as ebooks, audiobooks, printables, and digital art. They present an additional avenue for inventory-free sales. Make sure you follow Amazon’s eBook guidelines, which include criteria for book covers, formatting, content, and metadata.

how to sell on amazon without inventory

You can consider selling digital art & earning royalties by using Amazon’s capability to create pages & imprint designs on various products.

If this aligns with your goals, your best action might involve producing your art and applying for the Merch on Amazon program.

The best part of digital products is that it eliminates the need for physical warehousing and shipping.

How Does Selling Digital Products Work?

Sellers can offer eBooks through Kindle Direct Publishing , digital art via Merch By Amazon , or music using platforms like Amazon Music . You need to create your account on these platforms and await approval.

Once you complete the subscription procedures, the digital products are prepared for e-commerce sales & uploaded onto the respective platforms.

Customers can then make purchases and instantly download the items. Depending on the platform, the proceeds are transferred to your bank account via payment gateways.

Now, let us look at how to start selling digital products on Amazon.

Get Started With Selling Digital Products On Amazon

Follow the given steps to get started with selling digital products:

  • Enroll as an Amazon seller .
  • Select a suitable platform for your digital offering, like Kindle Direct Publishing for ebooks, Amazon Music for digital music, or Merch by Amazon for digital art.
  • Develop your digital creation that adheres to Amazon’s formatting, content, and metadata specifications.
  • Upload your digital product to the designated platform and establish your pricing.
  • Engage in promotional activities for your digital product through strategies like social media, email marketing, and Amazon advertising.

Pros and Cons of Selling Digital Products

5. Print-On-Demand

Print-on-demand (POD) introduces customization and addresses some of the limitations inherent in the dropshipping model.

how to sell on amazon without inventory

Selling print-on-demand products offers an excellent solution for marketing customized merchandise without inventory management.

POD items come with slightly higher retail prices than wholesale products, so sellers often need to adjust their profit margins to maintain competitiveness on marketplaces like Amazon.

When a customer places orders for products in an online store, their orders are transmitted to a fulfillment center. Upon receiving the order, manufacturers customize blank products and subsequently manage inventory and shipping.

The best part of print-on-demand is its eco-friendliness. POD products are printed only after an order is placed. Thus, it reduces waste & minimizes the environmental footprint.

How Does Print-On-Demand Work?

First, the seller collaborates with a print-on-demand (POD) service like Merch by Amazon . Then, they engage in product design & customization and proceed to list the POD items on their online store.

When customers make purchases, the order details are forwarded to the manufacturer, who prints the customized designs, packages the merchandise, and oversees the shipping process.

Now, let us look at how to get started with print-on-demand.

Get Started With Print-On-Demand On Amazon

Follow the given steps to get started with print-on-demand:

  • Sign up for Merch by Amazon .
  • When you get approval, you can upload your artwork, select the product type and color, & provide a product description.
  • List your print-on-demand products on the platform and establish your pricing.
  • When customers make a purchase, they manage production, shipping, and customer service for you, all without any initial expenses.

Pros and Cons of Print-On-Demand

So, these were the methods on how to sell on Amazon without inventory. Let us now know how to choose products while selling on Amazon without inventory.

Significance Of Product Selection

Careful product selection plays a major role in Amazon sales without inventory. The products you offer exert a direct influence on your profitability, customer contentment, & overall business expansion.

how to sell on amazon without inventory

You need to choose products with strong demand while avoiding excessive saturation in the market. Moreover, these products should offer favorable profit margins that factor in supplier costs and customer willingness to pay.

Now, let us know how you can identify the profitable products in the next section.

How To Identify Profitable Products?

You need to follow some strategies to find out the profitable products. Here are the tips:

how to sell on amazon without inventory

  • Examine the product offerings of accomplished sellers within your niche.
  • Use Amazon’s Best Sellers list to get valuable insights into current consumer preferences.
  • Seek out high-margin products that you can procure at a low cost but sell at a premium price.
  • Use tools like Google Trends or keyword research tools to identify popular products.
  • Small and lightweight products often involve lower shipping expenses, boosting your profit margins.

Amazon Product Policies & Restrictions

Amazon has specific prohibitions on the sale of certain items, while others need prior approval.

Restricted products include a range of items, including but not limited to certain electronics, hazardous materials, and specific branded products to prevent counterfeit sales.

According to Amazon’s guidelines, your information about your products is truthful & adheres to all relevant laws.

Keep in mind that if you fail to adhere to Amazon’s policies, your account can get suspended and, in some cases, permanently removed.

I suggest you familiarize yourself with these policies to understand the potential legal complications and ensure a seamless selling experience.

Let us know how you can maintain high customer service standards while using third-party fulfillment.

How To Maintain High Customer Service Standards While Using A Third-Party Fulfillment?

A thriving Amazon business depends on upholding superior customer service standards.

You need to collaborate with dependable third-party suppliers who consistently deliver top-notch products within specified timelines. It reduces concerns tied to product quality and shipping delays.

how to sell on amazon without inventory

You need to maintain consistent communication with your suppliers to remain informed about potential challenges that could impact your clientele.

React promptly to customer queries and grievances and resolve their concerns. In case of order-related issues, notify the customer. You need to embrace honesty and transparency to nurture customer confidence.

If you have a team, make sure their training addresses typical concerns and underscores the significance of delivering exceptional customer service. Regularly assess customer reviews and feedback to pinpoint recurring issues or areas requiring enhancement.

You need to establish a clear and equitable returns policy that effectively addresses customer purchase dissatisfaction.

Now, let us see how to set up an Amazon seller account in the next section.

Set Up Your Amazon Seller Account

You can easily set up your Seller account by following these ways:

  • Sign up for the Amazon Seller Central .
  • You will have the option to select between “Individual” and “Professional” seller plans. Individual sellers do not incur a monthly fee but pay $0.99 for each item sold. Professional sellers pay a monthly fee of $39.99, but they are exempt from per-item fees.
  • Complete the necessary business details, such as your legal name, address, & phone number.
  • Provide a credit card that Amazon can use for charging selling fees and designate a bank account where Amazon can deposit your sales earnings.
  • Submit the required tax information by following the process suggested by Amazon.
  • Select your store name and configure your Amazon storefront.
  • Finally, you can start listing your products for sale. If you’re selling without inventory, you’ll be adding products to your inventory from your chosen third-party suppliers.

Now, let us see how to track and hike Amazon sales in the next section.

How do you track and increase Amazon sales without inventory?

how to sell on amazon without inventory

If you want to track and increase Amazon Sales without inventory, you need to follow these steps:

  • When a customer returns an item, it will be returned to Amazon’s inventory, and a replacement will be dispatched without your direct intervention. You can monitor these changes on your FBA inventory page.
  • You can use software tools that help you understand your status and guide you toward your objectives.
  • Amazon extends reports to sellers and facilitates sales, returns, and overall performance monitoring.
  • Platforms such as Jungle Scout , Helium 10 , or Amazon’s proprietary keyword tool give you high-performing keywords that can be included in your product listings.
  • Guarantee the excellence of your product listings through vivid imagery, accurate product descriptions, and relevant keywords.
  • Use Amazon’s advertising features to increase product exposure and traffic directed to your listings.
  • Solutions like RepricerExpress can facilitate price adjustments aligned with competitor pricing, optimizing sales and profits.
  • If you’re operating under the dropshipping model, inventory management tools make you aware of your supplier’s stock levels, avert the listing of out-of-stock items, and preserve operational smoothness.
  • Software like Synder quickly provides sales metrics, including COGS, platform fees, top-performing products, etc.
  • Encourage satisfied customers to leave reviews. Favorable reviews have the potential to boost sales significantly.

Now, let us look at the tips to become a successful seller on Amazon.

Strategies For Success In Amazon Sales Without Inventory

how to sell on amazon without inventory

Let us have a look at the strategies for success while selling on Amazon without inventory:

  • Whether you’re collaborating with manufacturers for dropshipping , third-party fulfillment providers, or digital content creators, dependable partners can consistently provide top-notch products and services. You need to conduct thorough research and maintain communication with your partners to ensure seamless operations.
  • Take the time to study and choose products that are in demand extensively, offer good profit margins, and align with your business objectives. Use tools like Amazon’s Best Sellers list, keyword research utilities, and competitor analysis to pinpoint potential product prospects.
  • Make sure your Amazon product listings are optimized for enhanced search visibility, higher conversion rates, and increased customer satisfaction. Use crystal-clear, high-quality images, craft compelling product descriptions, incorporate relevant keywords, and actively encourage customer reviews to enhance your rankings and boost sales.
  • When you’re engaged in Amazon sales without inventory, your success depends on your capacity to market your products and deliver outstanding customer service. Allocate resources to advertising, social media marketing, and email campaigns to channel traffic to your listings and promptly address customer inquiries and concerns to foster trust and loyalty.
  • Regularly assess your sales data, customer feedback, and market trends to identify avenues for enhancement and modify your approach accordingly. You need to experiment with new products, pricing, and marketing strategies to propel your business growth.

Benefits Of Selling On Amazon Without Inventory

Here are the benefits of selling on Amazon without inventory:

  • Selling without inventory minimizes the initial costs linked to procuring and storing products. It empowers sellers to allocate resources toward other facets of their enterprise, such as enhancing marketing initiatives and optimizing customer service.
  • Sellers can effortlessly broaden their product offerings while sidestepping the maintenance of a substantial inventory. It allows you to experiment with diverse products and pinpoint niche markets that resonate with the intended audience.
  • By removing the burden of inventory management, you can streamline your operations and concentrate on fundamental business endeavors like refining marketing strategies and devising growth-oriented plans.
  • Conventional inventory management involves costs associated with storage, which can exert significant financial strain. Embracing inventory-free selling removes the necessity for warehousing and the accompanying expenses.
  • The approach of inventory-free selling paves the way for quick scalability. Sellers promptly adjust to shifts in demand and market trends without being hindered by the intricacies of overseeing physical inventory levels.

Real-Life Examples Of Selling On Amazon Without Inventory

Here are the real-life examples of selling on Amazon without inventory:

Native Pet is an ecommerce store that uses Amazon FBA. They offer the best and most innovative nutrition to directly benefit the health of pets.

how to sell on amazon without inventory

Taos Footwear is another ecommerce store using Amazon FBA. They offer unique sneakers, sandals, casuals, wool, boots, accessories, and a lot more.

how to sell on amazon without inventory

Lessons in Chemistry is an audiobook, a digital product on Amazon. The owner sells it without any inventory. This audiobook doesn’t need any physical warehousing and shipping.

how to sell on amazon without inventory

Painter 2022 Upgrade is a professional digital painting software on Amazon. It also doesn’t need any physical warehousing and shipping. You can pay the fees and download it on your PC or Mac.

how to sell on amazon without inventory

Now, let us look at some FAQs on how to sell on Amazon without inventory.

FAQs (Frequently Asked Questions) On How To Sell On Amazon Without Inventory

1. how to sell products on amazon without having products.

You can participate in the FBA (Fulfillment by Amazon) initiative. Explore the option of dropshipping merchandise. Further, you can employ a hybrid approach involving FBM and third-party logistics vendors. Then, engage in the sale of digital goods.

2. Can I create a listing on Amazon without inventory?

You can utilize Amazon FBA without having your inventory through dropshipping or retail arbitrage. However, these methods have their own set of rules and requirements that you need to follow according to Amazon’s policy.

3. How do you sell when you don’t have inventory?

If you don’t have inventory, you can sell by dropshipping, affiliate store, selling digital products, FBA (Fulfillment By Amazon), and through third-party logistics companies.

Final Thoughts On How To Sell On Amazon Without Inventory

Selling on Amazon without inventory presents great opportunities for entrepreneurs and businesses . By using innovative approaches such as FBA programs, dropshipping, and hybrid methods, you can navigate the e-commerce landscape with flexibility and cost efficiency.

It empowers you to channel your resources towards marketing strategies, enriching customer experiences and propelling business expansion. You can further embrace the sale of digital products to widen your scope. It enables you to tap into diverse market segments.

Regularly track market trends, customer feedback, and emerging technologies to fine-tune your strategies. By leveraging these insights, you can prosper in Amazon sales devoid of inventory and establish a sustainable and thriving online business.

I hope today’s article on how to sell on Amazon without inventory sounds helpful!

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How To Sell on Amazon Without Inventory: Simple Guide For 2024

Kevin

Thinking of better ways to diversify your income and gain financial stability quickly? Selling on Amazon is your best bet. Whether what you need is a side hustle or a full-time job, setting up an Amazon business is a great idea. If you have considered selling in the marketplace for a while, chances are that the costs are the only reason you’re holding back. Contrary to any assumptions you may have had, you do not have to break the bank to sell on Amazon.

Getting started on Amazon is not so difficult. But it can be challenging at first, especially for beginners. It is even worse for beginners who have no source of capital to finance a new business. Thankfully, the marketplace is built to accommodate everyone. So, whether you’re buoyant or cash-strapped, there’s an Amazon business model for you. Of course, selling on AMZN is a lot easier when you have a source of funding. But what if you don’t? Not to worry, you can still sell on Amazon without capital.

If you want to sell on AMZN without capital, then you should learn how to sell on Amazon without inventory. AMZN offers different business models, but the majority of them require you to fund your business. However, there’s one that allows you to sell on Amazon without inventory. In this post, we’ll tell you all about the different business models. Then, we’ll go ahead to show you how to sell on Amazon without inventory.

Let’s get started.

Table of Contents

Amazon Business Models

AMZN offers five different business models and they all work differently. Of course, the financial commitment also differs. Some require huge capital, others require little financial investment. But if you want to learn how to sell on Amazon without inventory or capital, there’s one you should look out for.

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  • Arbitrage : The arbitrage business is one of the most cost-effective ways to sell on Amazon. Still, it requires you to source products from retail stores, then sell them on AMZN at a higher price. So, you’ll have to maintain an inventory. To source products, you’ll need to have a reasonable amount of capital, but you can start small. This business model has two models: the online arbitrage model and the retail arbitrage model. Both models are similar, but the product sourcing methods vary. With online arbitrage, you’ll have to source products from online retail stores. In contrast, retail arbitrage requires you to source products from physical retail stores.
  • Wholesale : Selling wholesale on Amazon involves purchasing products in bulk from manufacturers. Then, selling in smaller quantities to retailers (arbitrage sellers). Of course, the wholesale model requires you to maintain inventory. And since you’ll be buying in bulk, you’ll need a large capital to start.
  • Private Label : Private label products are products that are sold under a company’s brand name, but manufactured by a different company. This is the most expensive business model to start with, but if you want to build a brand on AMZN, it’s your best bet.
  • Handmade : So you have creative abilities and you want to make money out of them? You can create handcrafted goods and sell them online. The handmade model allows you to sell handmade products from the comfort of your home. But of course, you’ll need to have the products in stock, so you’ll have to maintain an inventory.
  • Dropshipping : This business model is popular among those who wish to make money on the side by selling on AMZN. It allows you to avoid the worry and difficulty that comes with inventory management, packaging, and shipping products. In other words, if you want to learn how to sell on Amazon without inventory, the dropshipping model is your go-to.

The dropshipping model involves selling things on behalf of a vendor. So, when a customer places an order on your listing, the information is sent on to the supplier. The supplier then ships the item directly to the buyer on your behalf. This way, you won’t

Since the purpose of this post is to show you how to sell products on Amazon without inventory, we will focus on the dropshipping model. Keep reading to learn more about dropshipping on AMZN.

Related : How to Sell on Amazon for Free

How Does Dropshipping on Amazon Work?

Amazon dropshipping is the easiest way to sell online without inventory. It allows you to sell to customers even if you do not own the product. As a dropshipper, all you have to do is list products for sale and have the supplier ship them to the customers. As a dropshipper, you’re only responsible for marketing products to customers on and off AMZN. The supplier will be solely responsible for shipping orders and maintaining inventory.

amazon inventory

If you’re learning how to sell on Amazon without inventory through dropshipping, you can explore the print-on-demand dropshipping model. It is a dropshipping model that allows you to advertise customized items for sale on AMZN. Then, when orders are placed, the supplier designs the products and ships them on your behalf. Customized t-shirts are the most suitable items for this dropshipping model.

Pros and Cons of Dropshipping on Amazon

Dropshipping is a great way to sell on Amazon without inventory or capital. But you should not start dropshipping without making findings and weighing your options. Like every other business model, the dropshipping model comes with its pros and cons. So, to help you decide if dropshipping on Amazon is worth a try, we’ll provide a balanced view of both sides.

  • Minimal Start-up Costs

Dropshipping, unlike other business models, does not involve inventory management. Instead, when the customer pays you for a product, you take some of the money and use it to buy the product from the supplier, who then ships it to your buyer. You won’t be storing or maintaining inventory, so you’ll also incur fewer costs on storage and shipping.

  • Easy to Set up

Since you won’t have to go through the stress of product sourcing and inventory management, you can easily get started as a drop shipper. Making money is as simple as advertising your product, making a sale, and getting paid. Getting started as a dropshipper may not be easy at first, but all you need is consistency. Also, follow AMZN’s dropshipping guidelines to avoid running into any trouble.

Check out Amazon’s dropshipping policy.

  • Multiple Product Options

Dropshipping does not require you to manufacture new products from scratch. So, you can sell pre-existing products. Also, there are over 30 categories on AMZN and you can decide to sell in as many categories as possible. All you need to do is find profitable products and then find genuine suppliers to work with. This won’t be much stress since product research and supplier research can be automated using AMZN software. If you read to the end, we’ll recommend the best software for product and supplier research to you.

  • Stiff Competition

Dropshipping has a lot of competition because the hurdles to entry are so low. Furthermore, while there may be some uniqueness to the products you’re selling, there’s nothing prohibiting other sellers from selling similar items.

As a result, price adjustment is one of the marketing strategies you’ll have to implement as you go along. But this may not be sustainable in the long run because if your product prices are on either extreme, your bottom line may suffer from it.

  • Longer Delivery Times

Dropshipping usually involves partnering with international suppliers. Consequently, the delivery of these products may take a lot longer. Always check where your supplier is located whether it be overseas or already in the states.

  • Poor Quality Control

You may not get to see the products before they’re sent to the customer, so you may be unable to assess product quality. As a result, product quality may vary from customer to customer and this may be bad for your business.

How to Sell on Amazon Without Inventory Through Dropshipping

Now that you know you can sell on Amazon without inventory through dropshipping, how do you get started? You can start dropshipping on AMZN in three simple steps.

Create a Seller Account

amazon business model no inventory

You’ll need to create a seller account to sell on AMZN. Next, you’ll have to choose a selling plan. AMZN offers two selling plans: an individual plan and a professional plan. The individual plan is best for sellers who intend to sell fewer than 40 items per month. In contrast, the professional plan is best if you intend to sell more than 40 items in a month.

Find a Profitable Product

Choosing a profitable niche is the first step to success on AMZN. But there are over 12 million products in AMZN’s catalog, and it may be difficult to settle for one. One hack to choosing a profitable product is to go for a high-demand, low-competition product.

Another way to find the bestselling products on AMZN is to use software for product research. With a product research tool, you can find in-demand products in different categories. This makes it easier for you to sell in multiple niches and make more money. What’s the best product research tool for your dropshipping business? We’ll tell you about it shortly.

Find a genuine supplier

After finding a profitable product, the next step is to find an authentic supplier to source the products. Supplier research is the most challenging aspect for many dropshippers. But it’s easier when you use software. ZonBase, the best AMZN software, offers a tool that gives you access to a list of authentic suppliers. Read to the end to learn more about this tool.

You can also check other online marketplaces for supplier options. Alibaba and AliExpress are often the best places to find suppliers for any product. Once you have found a supplier, ensure you contact them ahead of time so they don’t ship orders to customers with their company address. The AMZN dropshipping policy prohibits that.

Create a Product Listing

Found a profitable product? Found an authentic supplier? Great! The next step is to create a product listing.

To create a product listing, open seller central and go to inventory. Next, click ‘add a product’. When the add a product screen comes up, click ‘inventory’, then ‘add a product’. Click ‘create a new product listing’ to complete the listing creation process.

amazon business model no inventory

The first step is to select a product category. After that, you’ll need to fill out the information for the listing. Remember to factor in AMZN’s costs when deciding on a price for your dropshipped item. If you’re a professional seller, you’ll be charged a monthly flat-rate fee of about $40. Individual sellers are also charged $0.99 per sale. AMZN also charges a referral fee on every sale, usually between 8% – 45% of the product’s price. Referral fees vary by category.

Learn more about AMZN Fees

How to Sell on Amazon without Inventory: Fulfillment Methods

Amazon generally offers two fulfillment options — Fulfillment by Amazon (Amazon FBA) and Fulfillment by Merchant (FBM).

If you opt for the FBA option as a dropshipper, your supplier will ship orders directly to an Amazon fulfillment center, Amazon then stores and ships the orders to your customers. This way, you will not have to hold inventory at all.

With FBM on the other hand, you will have to handle storage and shipping yourself. This defeats the aim of selling on Amazon without inventory. However, you can make use of third-party logistic firms if you really want to be in control of your shipping procedures. We will discuss the pros and cons of Amazon FBA as well as the pros and cons of the third-party logistic option.

Pros and Cons of Amazon FBA

  • Access to an established network of loyal shoppers
  • Amazon handles fulfillment and shipping using its existing logistic infrastructure
  • Access to Amazon fulfillment centers for storing your products
  • Assurance of safe storage, fast shipping, and excellent customer service
  • Costly Amazon FBA fees
  • There are strict packaging and shipping requirements

Pros and Cons of Third-Party or 3PL Logistics

A 3PL allows you to store your products and ship them without Amazon FBA fees and without storing Amazon inventory. A few pros and cons are listed below.

  • Fulfilling orders through 3PLs gives you more control and can be a great way to cut down costs depending on the quantity and size of your orders.
  • Like Amazon, if you choose a reliable 3PL, you can be sure that they also have the infrastructure required to ship orders quickly. 
  • 3PLs often require you to monitor the shipping procedures and this may require an investment of time. 

Amazon Dropshipping Tips

Starting a dropshipping business on AMZN is pretty easy, but you’ll still have to put in some work. Here are a few tips to help you get the best out of your dropshipping business.

Promote Your Listings

The easiest way to make sales on AMZN as a dropshipper is to drive traffic to your listings. Consider running PPC ads to drive traffic to your listings and boost your conversions. You can also drive off-Amazon traffic to your listings through social media ads and email marketing.

Develop a Unique Selling Point

As a dropshipper, you’ll face stiff competition on AMZN because many other sellers sell the same products as you. As a result, you need to come up with ways to differentiate your brand from others. Pricing may not be the best way to do this, but you can come up with other unique selling points for your brand.

Test Products Before Selling Them

As we mentioned before, there is very little quality control when it comes to dropshipping. However, if you want to build a profitable business, ensure that your products are of good quality. Otherwise, you’ll end up shipping sub-standard items to customers and having them file claims against you. If this happens, your account health may suffer and your business may take a hit.

The only way to confirm the quality of your products is to request samples from suppliers before placing large orders. Examine the sample when it arrives. When it arrived, how did it look? How long did it take you to get the order? Were the items exactly as described? This will help you confirm the quality of the product and estimate the average delivery time.

Try Out Multiple Options

There are no restrictions on how many products you can sell as a dropshipper. Since you won’t be paying any upfront costs, you can list as many items as possible. Observe what sells and what doesn’t, then focus on the products that are most profitable.

Other Ways to Sell on Amazon Without Inventory

So, you want to learn how to sell without inventory, but you’re not interested in dropshipping? That’s fine. Dropshipping is the most popular way to sell without inventory, but it is not the only way. However, there’s only one other option apart from dropshipping, and that’s to sell digital products on Amazon.

Sell Digital Products

Downloadable audiobooks, digital versions of your publications, and print-on-demand products, such as selling t-shirts on Amazon or art prints, are all examples of digital products. Selling digital products on Amazon has very similar pros and cons to dropshipping. A few of them are listed below.

Pros of Selling Digital Products on Amazon

  • Low startup costs and ease of setup.
  • Can be accessed by new and existing sellers, regardless of the level of expertise.
  • Sellers are in control of their prices

Cons of Selling Digital Products on Amazon

  • Fierce competition resulting in low visibility and reach
  • No assurance of sales or profitability
  • Commission fees are on the high side

So, can you sell on AMZN without inventory? Yes! Anyone can. All you have to do is set up your account, find a profitable product to sell, and then create and optimize your listings. You won’t have to pay any upfront fees, but if you want to scale your business quickly, you may have to invest in software. There aren’t many affordable yet effective software options, but there’s one that we trust—ZonBase.

Best Amazon Seller Tool To Scale Your AMZN Business

ZonBase is the best Amazon seller tool for product research, keyword research, and listing optimization. Sellers will find this tool helpful regardless of the business model they choose to use. Its product research tools are known for generating thousands of profitable product suggestions. Apart from generating product suggestions, sellers can also validate their product ideas using this tool. Its keyword research and listing optimization tools work hand in hand to help sellers find relevant keywords and create well-optimized product listings.

Get Amazon Page One

ZonBase also offers sales estimation and analysis tools to help sellers track profitability. It also offers mentorship and a photo enhancement service for sellers who want to improve the quality of their product images.

How to Sell on Amazon Without Inventory Using ZonBase Tools

amazon business model no inventory

With ZonBase product research tools, you can find the best-selling products on Amazon . After finding profitable product suggestions, you can estimate their sales potential and profitability using the sales estimator tool. ZonBase also offers a Hot Products tool that provides supplier options for each product.

Your product images also play a major role, so ZB provides a photo enhancement service. The service allows you to send your product images to a team of experts. The team will then edit them professionally and send them back to you.

ZonBase is the best software for anyone who wants to sell without inventory. The software offers three plans: a standard plan at $37/month, a legendary plan at $67/month and a Diamond Plan at $132/Month. This may seem like a lot, especially if you do not have any source of funding, but investing in software is never a bad idea. It’s a smart move, and if you make the investment, you’ll definitely make the money back in no time. For a start, you can sign up for a free trial to explore the features before making a financial commitment.

Check out the software.

If you read to this point, then you already have all the information you need on how to sell stuff on Amazon without inventory. Now that you have learned how to sell on Amazon without inventory, you will have to use the tips provided in this post if you want to build a successful business.

Good luck on your journey.

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Kevin David is the co-founder of Zonbase, the leading software suite for Amazon sellers. He is a serial entrepreneur and leading Amazon expert with over decade of experience building and scaling Amazon businesses

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How to Sell on Amazon Without Inventory [Ultimate Guide for Physical and Digital Products]

Are you interested in selling on amazon without a product you're not alone. many entrepreneurs are looking to capitalize on the massive market that amazon provides, but they don't have an actual product to offer. fortunately, there are many options available to those looking to make money on amazon without having a physical product..

Interested to know how to make money on Amazon without physical products? We’re here to help! Fortunately, there are many options available to entrepreneurs looking to make money on Amazon without holding inventory. In this guide, we'll explore:

  • The benefits of selling on Amazon without a physical product.
  • 7 ways how to make money on Amazon without selling physical products.  

Ready to become a successful Amazon seller? Here we go!

The Benefits of Selling Digital Physical Products on Amazon Without Holding Inventory 

Here are the key advantages of selling on Amazon without physical inventory. 

Simplified Process

It’s ideal to sell on Amazon without inventory as this eliminates the need for manufacturing, packaging, and shipping . This streamlines the process and allows for a faster start-up, without the overhead costs associated with physical products.

Higher Profit Margin

You don’t only make money by selling physical products on Amazon. Think about it. With no overhead costs, sellers can focus on optimizing their listings and visibility , which can lead to higher sales and profits. 

This is especially beneficial for sellers with limited resources or those looking for a side hustle.

Diverse Product Options

Sellers can offer a variety of products and services, including digital products, dropshipping, and various services such as web design and social media marketing . This allows for more flexibility and the ability to pivot and expand the business as needed.

No Need for a Warehouse or Inventory

Selling on Amazon without a physical product means that there is no need for a warehouse or inventory. This not only saves on costs but also frees up time and resources that can be used to improve and grow the business.

amazon business model no inventory

7 Ways to Make Money on Amazon Without Selling Physical Products 

To sell on Amazon without managing physical products, merchants can employ any of these strategies. 

1. Supliful 

Want to know how to sell on Amazon without a product? Supliful is an excellent place to start for reliable quick private-label supplement development and order fulfillment.  

We work with dietary supplement entrepreneurs to help create, manage, and grow their private-label supplement inventory and orders. By integrating Supliful and Amazon, here's how we work :

  • Entrepreneurs can connect with Supliful by visiting our websites and contacting us for a custom quote. 
  • We provide a tailored fulfillment strategy for you based on your requirements, including packing, storage, shipping, and even product returns. 
  • You get weekly inventory and order fulfillment reports to reflect your stock levels and help you forecast your earnings. 

Moreover, Supliful operates on a pay-as-you-go pricing model, which means we charge for the actual services used and you do not have to pay a flat fee! 

What’s more, we handle all the aspects of order fulfillment, from Supliful and Amazon integration to driving customer satisfaction. 

"how-to-sell-on-Amazon-without-inventory-Supliful"

Pros and Cons of Supliful Order Fulfillment Service

Here are the key advantages and potential challenges to prepare for when generating sales through Supliful Order Fulfillment Service:

  • Easy to Start: Registering for Supliful's services is straightforward. After a simple application process and approval, you can swiftly integrate it with your Amazon account. 
  • Time and Resource Efficiency: With Supliful handling order fulfillment, entrepreneurs can channel their time and resources into other aspects of their business, like product development and marketing.
  • No Upfront Cost: Supliful does not impose any upfront costs on its services.
  • Supliful Works With Only Supplement Merchants: Supliful only specializes in helping private-label supplement sellers boost their profits and optimize order fulfillment. Unfortunately, other businesses cannot benefit from these services. 

2. Amazon Merch

Amazon Merch is a platform that allows artists to create and sell their own merchandise , including customized t-shirts, hoodies, phone cases, throw pillows, and tote bags with their own logos or designs. 

Amazon handles the printing, shipping, and marketing for the artists, and customers purchase the products directly from the artists' pages.

One of the benefits of Amazon Merch is that artists can sell items they have already sold through other channels, such as Etsy or eBay. 

Additionally, Amazon Merch is free to join and has no monthly fees. Artists receive royalties on their sales, and Amazon takes care of everything else. Read our guide on how to sell Amazon products on Facebook marketplace to maximize your revenue streams. 

amazon business model no inventory

Pros and Cons of Selling on Amazon Merch

Thinking of selling on Amazon merch? Here are a few pros and cons to consider. 

  • Access to a vast customer base: Amazon has a massive customer base, so when you sell your designs on Amazon Merch, you have the potential to reach millions of potential customers worldwide.
  • No inventory costs: With Amazon Merch, you don't have to worry about inventory or warehousing costs. Amazon prints and ships your products for you, which means you can focus on designing and marketing your products.
  • Low barriers to entry: Amazon Merch is a relatively easy and cost-effective way for artists and designers to start selling their designs. There are no upfront costs, and the sign-up process is straightforward.
  • Limited product selection: Amazon Merch only allows you to sell certain types of products, such as t-shirts, hoodies, and phone cases. You also have limited control over the quality and selection of the products you sell.
  • Limited design control: While Amazon Merch allows you to upload your designs, you don't have complete control over how they are printed or displayed. This can be frustrating for designers who want more control over the final product.
  • Risk of account suspension: Amazon has strict rules regarding copyright and trademark infringement. If your designs violate these rules, your account may be suspended, and you may be banned from selling on Amazon Merch.

3. Amazon Home Service 

Amazon Home Services is an online platform that connects customers with local professionals for home-related services . Here's how it works:

  • Customers can easily find local professionals by entering their zip code or city and selecting the service they need on amazon.com/home-services. 
  • They will be presented with a list of verified professionals rated by customers through the Amazon Marketplace feedback system.
  • Once the customer selects a professional, they can schedule the service and pay for it through Amazon's platform.

In addition, Amazon Home Services doesn't charge a flat fee; instead, it collects a commission from each transaction, typically ranging from 15-20% of the service price.

To use this strategy and make money on Amazon without physical products, you must register for a free account and meet certain qualifications such as insurance and certifications. And then, choose the category that best suits your services and list them on the platform.

amazon business model no inventory

Pros and Cons of Amazon Home Services

Here are key advantages and setbacks to prepare for before generating sales through Amazon Home Services:

  • Easy setup process: You can start selling your services on Amazon Home Services quickly after filling out an application and waiting for approval.
  • High-profit margins: Since there are no inventory or other overhead costs, the profit margins are high for home service professionals.
  • No upfront expenses: There are no upfront expenses associated with the Amazon Home Services program.
  • Commission-based earnings: Professionals are limited by Amazon's pricing policies and lack flexibility when it comes to pricing their services.
  • Limited pricing flexibility: As a seller on Amazon Home Services, you're locked into a commission rate that doesn't consider the value you bring to customers or the time it takes to complete orders.

4. Amazon Kindles

Another way to make money on Amazon without physical products is by selling Amazon Kindles . If you're an aspiring author looking to self-publish your eBook, Amazon KDP is one of the best platforms to do so.  

It's simple, free, and offers a vast market to sell your work. Here are the steps to publishing your eBook on Amazon through KDP:

  • Set up your account on Amazon KDP.
  • Once the account is created, you'll be taken to the 'Bookshelf' page.
  • Click on the 'Create New' button on Bookshelf.
  • Fill in the book-related information, including language, title, author, contributors, publishing rights, category, age, and grade range.
  • Upload your book content in Adobe PDF, zipped HTML Word, ePub, Mobipocket file, or Plain Text format, and your book cover in JPEG or PNG.
  • Move to the Pricing, Royalty & Distribution section and choose the royalty plan.
  • Once you've set the price and selected the royalty plan, agree to the T&C of Amazon and click the 'Save and Publish' button to enter your eBook in the queue for approval.

amazon business model no inventory

Pros and Cons of Selling on Amazon Kindles

If you're thinking of publishing your book on Amazon Kindle, here are some pros and cons to consider:

  • Multiple Platforms: Amazon KDP allows you to sell your book on various channels, not just Amazon, giving you more exposure and sales potential.
  • Publisher and Retailer Combined: Amazon handles all payment processing, order fulfillment, and customer service for you, making the publishing process stress-free.
  • No Upfront Costs: Publishing your book with KDP is completely free, and you can publish as many books as you want without incurring any expenses.
  • Limited Promotions: Unlike traditional publishers, KDP doesn't offer pre-publishing promotion and press strategies, so you're on your own when it comes to marketing your book.
  • High Competition: With countless established and aspiring writers, KDP can be a highly competitive marketplace, making it harder to stand out and get noticed by readers.

5. TuneCore

TuneCore is an AmazonMusic-owned platform that offers audio content publishing and distribution services. TuneCore makes it possible for you to make your audio content available to worldwide consumers via over 150 streaming stores, including Google Play, iTunes, and Spotify.

TuneCore's prices for distribution of an album or an EP start at $29.99 and for a single, $9.99, which are reasonable compared to other distribution companies and record labels. To get started on this platform, follow these steps:

  • Sign up for a TuneCore account to start selling your audio content on Amazon.
  • Choose your release type, either an album or a single.
  • Upload your corresponding audio content and cover art.
  • Mention the contributors' names to give them credit when an audio file is sold.
  • Get your music approved by TuneCore, which typically takes about 24 hours.
  • Start selling!

amazon business model no inventory

Pros and Cons of Selling on TuneCore

Here are the top pros and cons of TuneCore to consider before selling.

  • Extensive Audience Reach: TuneCore partners with over 150 popular digital audio stores, allowing you to reach audiences worldwide.
  • You Keep 100% Royalties: When you upload your music or other audio content on TuneCore, you are entitled to 100% royalties. 
  • Customizable Distribution Options: TuneCore provides customizable distribution options, allowing you to choose the specific streaming platforms you want to distribute your audio content on, giving you more control over your content's reach and revenue.
  • Annual Subscription Fees: Some pricing plans require an annual subscription fee, which may be a disadvantage to those on a tight budget.
  • Limited Distribution for the Basic Plan: The basic plan of TuneCore has limited distribution options, and you have to pay additional fees to distribute your audio content to more platforms.

6. Dropshipping

Dropshipping is a business model that can help you become an Amazon seller without inventory. This model allows entrepreneurs to sell products without the need to hold inventory. 

Instead, when a customer purchases an item, the dropshipper sends the order details to a supplier or manufacturer who then fulfills the order and ships it directly to the customer.

So, if you’re wondering “ how to become an Amazon seller without inventory ”, dropshipping is the answer! To start, you'll need to find a product to sell on Amazon. Search for products on Amazon's website or by using tools to identify products with good dropshipping potential. 

Once you've found a product, you'll need to identify a supplier or manufacturer who can fulfill orders for that product. The supplier will be responsible for shipping the product to the customer and handling any customer service issues related to that product.

After selecting a supplier, you can create an Amazon seller account and list the product for sale on Amazon's website as if it were being sold directly from your own warehouse or storage facility. Here is an overview of Amazon’s dropshipping policy:

amazon business model no inventory

Pros and Cons of Amazon Dropshipping

Amazon dropshipping has several advantages that make it an attractive business model for online entrepreneurs. 

  • No Product Sourcing or Warehousing: Brands don’t have to spend time or money sourcing or warehousing products. You simply need to find a supplier with the right product portfolio and price point for a particular consumer base.
  • Low startup cost: The only aspect you will invest in is the promotion of your Amazon dropship store and listings. Your dropshipping partner (brand/manufacturer/supplier) will take care of the rest of the overheads.
  • Flexibility: Dropshipping allows you to test different products and niches without having to commit to a large inventory. This flexibility means you can adapt your business to changing market trends and customer demand.
  • You don’t own the inventory : If your supplier runs out of stock, you can't sell anything until they get more stock (unless you want to buy your own). It means that when demand increases and your products sell out quickly, you can't fulfill them until more inventory arrives.
  • Sellers can’t control the price: Since you don’t own the inventory and can only sell at whatever price your supplier sets, you have no control over what price your products sell at. And if your supplier decides to increase their prices for no reason or decrease their quality to make more profit, then you are stuck with those changes.

Bonus Tip: Read our guide on how to dropship on Amazon without money and start gaining Amazon sales today!

7. Amazon Fulfilled by Amazon (FBA)

With FBA , you ship your products to Amazon’s warehouse, and they take care of everything from storage to shipping. The advantage of Amazon FBA is that you don't have to handle the fulfillment process yourself. Your customers can easily place orders and have their products shipped directly from Amazon.

Sellers don't have to worry about storing or managing your products. Amazon takes care of all aspects of the sale, including storage, processing, shipping, returns, and customer service. Selling on Amazon without physical products has never been easier! 

In exchange for these services, Amazon charges a monthly fee and takes a percentage of each transaction. Read our guide on how to sell products through Amazon warehousing and maximize your profits! 

amazon business model no inventory

Pros and Cons of Amazon FBA

Before investing in Amazon FBA, consider these primary advantages and disadvantages. 

  • Amazon Has a Large Customer Base: Access to Amazon's vast customer base can greatly increase sales and visibility.
  • Increased Efficiency: Fulfillment and shipping are handled by Amazon, saving time and resources for the seller. In addition, storage and order management are taken care of by Amazon, reducing the need for a physical storefront or warehouse.
  • Credible Platform: Amazon is a globally-recognized brand that millions of shoppers trust.
  • High Fees: The fees to use APA can be high, particularly for long-term storage, and may reduce your profits.
  • Inconvenient Inventory Recovery: If Amazon loses or damages your products, it can be difficult and time-consuming to get compensation or reimbursement.

Now that you know how to sell on Amazon without a physical product, let’s explore the rules and regulations merchants must consider. 

Rules and Regulations to Sell on Amazon Without Inventory 

Selling on Amazon without a physical product comes with its own set of rules and regulations that must be adhered to. These guidelines are put in place to ensure fair business practices and to protect both the sellers and customers. Here are some specific points to consider:

  • Tax Laws: Be aware of the tax laws in your jurisdiction and ensure you are properly registered and paying taxes as required.
  • Labeling: Products must be labeled accurately and comply with all labeling regulations. Make sure to provide clear and concise product descriptions to avoid misleading customers.
  • Advertising: All advertising must be truthful and not misleading. Do not make any false claims about your product or engage in any deceptive practices.
  • Consumer Protection: You must comply with all consumer protection laws and regulations to ensure the safety of your customers.
  • Intellectual Property: Do not infringe on any intellectual property rights, including trademarks, copyrights, and patents.
  • Prohibited Products: Certain types of products, such as illegal drugs or weapons, are prohibited from being sold on Amazon without owning a physical product.

By following these guidelines, you can sell on Amazon without a physical product while still adhering to ethical business practices and ensuring customer satisfaction.

Key Takeaways

To make money on Amazon without physical products, use these strategies: 

  • Amazon Merch
  • Amazon Home Service
  • Amazon Kindles
  • Dropshipping
  • Amazon Fulfilled by Amazon

In addition, the benefits of these strategies are:

  • A simplified selling and shipping process.
  • Increased profit margins without the expense of managing and storing inventory.
  • You can sell a diverse range of products.
  • Merchants do not need to worry about warehousing and storage logistics. 

Want to sell on Amazon without inventory? Consider these FAQs to get started!

Is it possible to sell on Amazon without a physical product?

Yes, it is possible to sell on Amazon without a physical product. There are various options available for entrepreneurs to make money on Amazon without the hassles of manufacturing, packaging, and shipping.

What are the benefits of selling on Amazon without a physical product?

The benefits of selling on Amazon without a physical product include a simplified process, higher profit margin, diverse product options, and no need for a warehouse or inventory.

What types of products can I sell without a physical product?

You can sell digital products, dropshipping, and various services such as web design and social media marketing without a physical product.

How do I create a successful Amazon business without a product?

To create a successful Amazon business without a product, you need to choose the right option for your business, optimize your listings and visibility, and provide excellent customer service.

Are there any downsides to selling on Amazon without a physical product?

Some downsides of selling on Amazon without a physical product include limited control over the final product and the risk of account suspension if you violate Amazon's rules regarding copyright and trademark infringement.

Looking for More Wisdom?

If you are looking for other articles on Amazon then these articles are a must see:

  • https://supliful.com/blog/which-country-is-best-to-sell-private-label-products-on-amazon
  • https://supliful.com/blog/how-to-dropship-on-amazon-without-money-in-2023
  • https://supliful.com/blog/what-is-the-most-commonly-bought-item-on-amazon

These posts will help you learn more about Amazon dropshipping so you can improve your skills.

amazon business model no inventory

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How to Sell on Amazon Without Inventory in 2023; 18 Alternative Models

Are you intrigued by ecommerce but hesitant about dealing with inventory? If you’re a lifestyle entrepreneur or solopreneur exploring how to sell on Amazon without inventory, this article is for you. We’ll cut through the complexities of traditional inventory management and introduce you to worthy alternatives for selling on Amazon.

Imagine a market where you’re selling digital products like ebooks or using dropshipping to move goods directly to your customer—no warehouse, no stock, no hassle. This approach lets you focus on what really matters: competitive pricing, profit margins, and keeping your customers happy.

Ready to take your Amazon business to the next level without inventory woes? Stick around, as we’ll also discuss how Amazon’s FBA program is an alternative no-inventory path to your ecommerce business journey. Let’s dive into the inventory-free future of ecommerce on Amazon.

Quick Summary:

  • Digital Products: From ebooks to audiobooks, digital products offer an easy entry point.
  • No Inventory Required: Learn how to sell goods on Amazon without the hassle of managing inventory.
  • Dropshipping: A popular alternative that eliminates the need for upfront inventory investment.
  • Online Arbitrage: Buy low from other online platforms and sell high on Amazon.
  • Self-Publishing: Write and publish your own ebooks or physical books through Amazon’s KDP and POD services.
  • ACX Audiobooks: Narrate audiobooks for additional revenue streams.
  • Amazon Associate: A quick way to start earning by directing traffic to Amazon’s site.
  • Amazon’s FBA (Fulfillment by Amazon): While traditionally used for inventory, FBA also offers ways to sell without holding stock yourself.

Table of Contents

How to Sell on Amazon Without Inventory; 18 Alternative Selling Methods

1. amazon online arbitrage, the opportunity in a nutshell.

Much like retail arbitrage which I’ll touch on later in the article, Amazon online arbitrage is when you buy products at a low price and resell them for a higher price on Amazon. With online arbitrage as the name suggests, the entire transaction is carried out online.

Amazon Online Arbitrage in more detail

This excellent Amazon online business idea is great for those who want to avoid the hassle of going to physical stores to find retail arbitrage opportunities. You can take advantage of the price differences of products sold at lower prices on online stores other than Amazon.

It’s a perfect starter idea for those without a car, who are stuck at home, or who simply don’t want to deal with physical product inventory for their online store.

Although there are software programs to help you find arbitrage opportunities, it can be costly, and some people have difficulty finding enough deals that would make the cost of the software worthwhile.

Working the other way around can be more beneficial. On eCommerce sites, such as eBay, set alerts for products that have a higher value on Amazon.

If you’re looking to begin online arbitrage, a great way is by specializing in second-hand books. A lot of these used books have textbooks that can be resold at a higher value. You can buy these kinds of books cheaply on eBay and then sell them for profit on Amazon.

Another booming industry is reselling used electronics; some older models are worth a pretty penny. For instance;

This Sony DVD was sold for £67.99 on eBay.

But on Amazon, this model sells at a much higher price.

How to Get Started With Online Arbitrage

Maybe you already have an interest in a niche with online arbitrage potential. If not, spend a little time researching to find a product selection group where you can exploit a price difference online.

Or for a step by step training program on all things Amazon with a particular focus on arbitrage, both online and retail, check out Jim Cockrum’s Proven Amazon Course , an affordable arsenal of tools and training to help you build your Amazon business.

2. Self Publishing Ebooks on Kindle KDP

Sell on Amazon by writing and self-publishing e-books through Kindle Direct Publishing (KDP).

Amazon KDP self-publishing in more detail

An obvious route to inventory-free selling, the Amazon Kindle e-reader gives people access to millions of books that they otherwise might not be able to read.

In the past, if an aspiring author wanted to get published, they would have to typeset their book and send it out hoping one of the major publishing houses would take them on. But now, with digital self-publishing anyone can write a book, format it for Kindle, and sell it on Amazon’s website.

E.L. James created a name for herself when she wrote and self-published 50 Shades of Grey, becoming a multi-millionaire in the process.

But you don’t need to write fiction or even a very long book to make money from self-publishing. You can earn money by selling short non-fiction ebooks via Amazon’s KDP program. Many people start by writing a short 30-50 page book on something they’re knowledgeable about—like gardening or knitting, for example.

Although you may think the topic is too small, there are still millions of Kindle users who might be interested. When you list your book with Amazon, it only takes 24 hours for it to appear as being for sale, and you get to keep 70% of the profits.

By writing and uploading multiple books, you increase your chances of making money through the Kindle KDP program. Not every book will be a bestseller, so it’s important to write shorter non-fiction guides instead of aiming for the next Pulitzer Prize-winning novel.

How to Get Started with with the Kindle KDP Program

To get started as a published author on Amazon, read my in-depth post on how to self publish on Amazon kindle .

3. Self Publishing Print Books on Amazon

In addition to Kindle books, you can also self-publish regular paperback books via Amazon print-on-demand.

Self-publishing print books in more detail

Though e-readers are commonly used, there are still people who prefer physical books. For this audience, Amazon offers a print-on-demand (POD) service to self-publishing authors.

In the past, self-publishing a paperback book was an option, but it demanded a large investment for the first print run―with no guarantees of being profitable if the book didn’t sell well.

Print-on-demand book printing only occurs after a reader has purchased your book; therefore, you never have to worry about investing anything upfront. The per-book printing cost is automatically deducted from your proceeds of the sale.

If you use Amazon Print on Demand, not only can you get your books out into the market quickly, but also be assured that you’ll never experience an inventory shortage.

At 60%, royalties for POD books are just a bit lower than those through Kindle-KDP, making it one of the most profitable products to sell on Amazon with no need for physical inventory lingering in shelves or warehouses. It costs around $1 to print a 300-page book, and paperbacks typically have a higher price tag than ebooks, since they’re physical objects.

Right now, the US, EU, and Japan are the only countries with access to Amazon’s POD service.

How to get started Self Publishing Print Books on Amazon

Start by checking out the Amazon Print-on-Demand Guide . Self-publishing groups found on Youtube and Facebook will also be able to share knowledge. Amazon runs free webinars , too, to guide you through the self-publishing process.

4. Sell No Content and Low Content Books

You don’t have to be a fantastic writer to take advantage of print on demand self-publishing. You can design and self-publish books with no content instead. Not only can you sell on Amazon without inventory, but also with minimal content!

No-content and low-content book publishing in more detail

No-content and low-content books lack, well, content.

Oftentimes people purchase these because they want to use the book as a notebook or journal. Below is an example of what a standard page looks like inside one of these types of print-on-demand books;

You can easily design a professional-looking layout for your book in less than an hour using a word processor. After that, you just need to build up the design so it’s consistent throughout the book and format it correctly for printing.

There are plenty of different ideas for no-content and low-content books. Popular designs include;

  • Children’s activity books.
  • Puzzles and games.
  • Adult or children’s coloring books.
  • Journals, diaries, and other workbooks.

The adage “don’t judge a book by its cover” clearly does not apply to this Amazon business venture. The success of your sales will largely depend on the appeal of your cover design.

Creating an impactful design is crucial, so you should be prepared to invest some time and effort into it. When brainstorming ideas, think about targeting specific keywords by using keyword research tools and niches rather than producing generic notebooks; for example;

If you’re not strong on graphic design, you can hire a designer cheaply on Fiverr or Upwork to do the job for you.

Selling no-content and low-content books is a numbers game. The ease with which you can get your product to market means there is intense competition. All you’re really selling is a blank book with a design, so it’s commonplace for people who utilize this method to upload thousands of designs.

How to get started selling no-content and low-content books on Amazon

Read my guide on making money with low-content books.

5. Sell on Amazon Without Inventory by Narrating ACX Audiobooks

Selling without inventory with Amazon Audible by narrating your or other’s KDP books and selling the audio via ACX.com.

Amazon ACX audiobooks in more detail

ACX.com is an Amazon company for authors wanting to sell an audio version of their book.

Audiobooks are growing in popularity and it’s big business. A marketing insights report states that during the forecast period of 2021 – 2027, the global market for audiobooks will grow at a compound annual growth rate of 24.4%.

Amazon’s Audible is the audiobook section of Kindle, and they are available on the Amazon website, as well as Apple’s iTunes.

So how to get started?

If you have written your own book as per idea #3, you can then record an audio version and release that for sale too.

There are two routes you can choose;

You can either:

  • Record the audio yourself in a home studio that meets certain audio quality requirements, or
  • Hire a sound producer (freelance audio actor) to record the audio for you.

When you enter this market, one of the great benefits you’ll find is that because you’re selling a digital product, your overhead costs are low. You only have to record your book once and then you can sell the digital file over and over again.

If however, you’re not great at writing but have a voice made for radio, you can earn by narrating books for other writers.

ACX.com is a site that pairs authors in need of narrators with voice actors, making it easier to land gigs as a freelancer. Still, you’ll need to put in the effort by pitching for work and recording audition pieces.

For high-quality recordings, you need a great microphone, sound recording software, and a place where there is no background noise.

You can be paid for audiobook narration on ACX.com in three ways;

  • A straightforward per-hour rate.
  • A share of audiobook royalties of up to 50%.
  • A combination of the two.

As far as strategies to sell on Amazon without inventory, this is one of the most lucrative.

Someone new to this line of work can expect to earn $100 per finished hour of audio recording, though if you are blessed with a rich and pleasant-sounding voice, top earners can make as much as $500 per recorded hour.

How to get started Narrating and Selling Books on Audible

Read my guide on how to make money with Audible .

6. Become an Amazon Associate

One of the easiest routes to get started selling on Amazon without inventory. Make money by sending shopping traffic to the Amazon store as an affiliate marketer.

Amazon Associates in more detail

Referring web users to eCommerce pages and receiving commission payments when they make a purchase is called affiliate marketing.

One of the largest global programs for this activity is run by Amazon, who call it Amazon Associates. Promoting any of the millions of products available on Amazon via your website traffic is an easy way to monetize your site.

The affiliate’s commission is generally 3-5% of the product’s sale price, but it can be as high as 12%, depending on the category. One of the great benefits of Amazon Associates is that you earn a commission on everything a shopper buys for 24 hours after they follow your affiliate link.

If you are promoting Yoga Mats and a shopper buys some Yoga Pants, then you receive a commission payment for both items. Anything else they purchase within 24 hours will also generate passive income on Amazon for you.

Obviously, to make money from home with Amazon, web traffic is necessary; you need people viewing your content. But what kind of content should it be?

You can use any method you like to create content! Bloggers can explore a favorite topic in greater depth, while those who prefer video streaming can launch a YouTube channel.

Keep in mind that it might take some time to build an audience for your content once you’ve chosen your niche. In the meantime, launching social media accounts associated with your primary content will help divert people to your website or blog.

How to get started as an Amazon Associate

Check out my guide on how to make money as an Amazon affiliate .

7. Become an Amazon Influencer

Similar to becoming an Amazon associate, another great route to selling on Amazon without inventory is to become an Amazon Influencer.

Simply promote Amazon products for an affiliate commission as an Influencer via your Social Media accounts.

Amazon influencer in more detail.

Influencer marketing is now big business. In just a few short years, it’s gone from an easy way for celebrities to earn extra dollars from product placement to a global industry worth an estimated $5-$10 billion annually.

Why do influencer marketing strategies work? According to numerous market research, it meets that popular social proof, which has a big impact on online buying decisions. Before shoppers spend money online, they look for things like reviews from other customers.

Influencer product recommendations are a type of social proof. When an influencer endorses a product, their audience is more likely to trust the recommendation and make a purchase.

You don’t need to be famous to become an influencer―all you need is an engaged following who respect your opinion on a topic. Influencing is predominantly done through social media channels.

If you have a sizable audience on Instagram, YouTube, Twitter or Facebook, you could potentially be accepted to the Amazon Influencer Program (AIP).

With affiliate commissions, you make money by promoting other people’s products. The AIP is similar to the Amazon Associates program, but with a few key differences. For example, some social media platforms (like Instagram) don’t allow users to post affiliate links.

To get around this issue, the AIP gives influencers their own page on the Amazon marketplace. Influencers can select which products they want to feature on their page and then share a link with their followers. When someone clicks on the link and makes a purchase through Amazon, the influencer will earn a commission from that sale

There are a couple of points to be aware of with this Amazon money-making idea.

  • You aren’t guaranteed to be accepted into the program, which is still relatively new.
  • Making a decent income will require a large following or a small dedicated following with lots of high-priced products to promote.

How to get started as an Amazon Influencer

Read my guide on how to make money an Amazon influencer .

8. How to Sell on Amazon Without Inventory With Merch by Amazon

Sell t-shirts, hoodies, and coffee mugs printed on-demand with your own designs.

Merch By Amazon in more detail

Although printing-on-demand has been around for decades, it is only recently that the technology has become widely available and accessible to businesses of all sizes- from small business start-ups to big-name brands.

With the internet, companies providing on-demand services have become more prevalent. In 2015, Amazon decided to join these ranks by launching Merch by Amazon.

With this opportunity, you can earn money by simply creating a design; it could be something as simple as text or a more creative piece of art. After choosing the product you want to sell with your design printed on it, list it for sale on Amazon.

A key advantage of print-on-demand is that there’s no need to manufacture products upfront and pay for a bunch of inventory – meaning you can focus solely on designing.

The Merch by Amazon service is currently only available to those who have been invited. However, it is still possible to request an invitation on the homepage. Keep in mind that you will need to make a strong case for yourself in order to be accepted into the program.

Remember that competition will be stiff, so your designs really need to stand out from the rest if you want any chance at success. Keep in mind that your designs cannot violate anyone else’s copyrighted material, or Amazon may take down your design with no prior notice.

If you’re looking to sell T-shirts and other products emblazoned with YOUR design, Merch by Amazon is likely the best service for you–especially if you have an existing audience from platforms such as YouTube. People usually feel more connected to a community when they purchase merchandise, so selling through this platform gives customers a sense of belonging to something larger.

How to get started with Merch by Amazon

To get started, head over to the Merch by Amazon page to request an invite.

9. How to Sell on Amazon Without Inventory by Dropshipping

By creating a product listing on Amazon, you can cut out the middleman and sell directly to consumers. Once you receive an order, the third-party will ship it straight to your customer.

Amazon Dropshipping in more detail

With dropshipping, you act as a middleman between a manufacturer/distributor and customer. You list products for sale on a marketplace, then when you make a sale, you purchase the product from the manufacturer/distributor who ships it directly to the buyer. You earn money by charging the buyer more than what you pay for the product.

Before you can dropship on Amazon, you need to do your product research. Look for an in-demand item that doesn’t have a lot of competition. When you’ve found the type of product you want to sell, find a manufacturer/distributor who supplies it.

Verify that they offer dropshipping and find out their per-unit price for using this service shipping directly to a third party customer. Based on this price information, create a listing on Amazon with pricing that reflects your cost plus desired profit margin while also including the shipping fee.

Dropshipping has a low barrier to entry, so many people are in competition with one another. Those who succeed make good profits.

Some advantages of dropshipping are that you don’t need to manage manufacturing and you can start with little money. However, some challenges may include working hard to generate sales or getting accustomed Amazon PPC advertising.

Be wary of long shipping times when dropshipping from China-based manufacturers/distributors – your customers may have to wait several weeks for their purchase. Additionally, since you won’t see the product before it’s sold, there’s always a chance the finished product won’t meet the quality standards set by the manufacturer’s sales images.

How to get started Dropshipping on Amazon

Many products sold by dropshippers on the Amazon marketplace are found on the Aliexpress website. Browse the website to discover products you’d like to sell.

You will need to do some detailed product research on Amazon before committing to a listing. JungleScout has a good post about the dropshipping model and also has the best tool for product research.

Also read my guide on how to dropship on Amazon .

10. Start a Consulting Services for New Amazon Sellers

While not strictly selling ‘on’ Amazon, if you’ve previously been an Amazon online seller and would like to generate an income without investing in inventory, selling your experience as an Amazon seller to help those just getting started on the platform, could be a lucrative avenue for you.

Consulting Services in more detail

With the internet’s help, it has become increasingly easier to sell consultancy services. If you have significant experience selling on Amazon, you can use that knowledge to market and sell your professional consulting services

With an opportunity such as Amazon, where there is always someone new trying to break into the market, you could make a living by acting as a consultant. Your value would be in your ability to show them how to use the platform quickly or help them avoid making common mistakes.

There are several different areas you might offer a service;

  • Some people will want an introduction to the platform and need low-level assistance to get up and running.
  • Some sellers will already be active on the platform but are having difficulty getting sales, so they will want help optimizing product listings.
  • Other sellers may be doing OK, but they want to take it to the next level and understand the ins and outs of PPC.

The amount of necessary expertise for each scenario varies, so there are plenty of opportunities to enter this market, even if you can only help those launching on Amazon for the first time.

( Image Source )

As a consultant, you will need to demonstrate professionalism. Your clients will want to see tangible results if they are paying you for your expertise. So you should consider putting together some consultancy packages that explain in detail what your clients can expect.

How to get started as an Amazon Consultant

You could dip your toe in the water with a simple Fiverr gig, but to land serious clients with the promise of ongoing work, you’ll need your own website that communicates your value proposition.

Or approach one of the Amazon FBA course programs and offer your services as a consultant to their students for a cut of your income.

11. Sell Your Own Online Amazon Course

Rather than selling your experience one to one as a consultant, package up your knowledge into an online video course and sell to many.

Selling an Online Course in more detail

If you’ve previously built your own business on Amazon either via FBA, arbitrage, merch, etc, or have worked with a successful Amazon business owner and have gathered the relevant expertise, you can easily package up your knowledge into a step by step video course and sell online.

Using online platforms such as thinkific.com or podia.com and your mobile phone and computer, you simply record & upload different modules covering all aspects of preparing, launching and growing an Amazon business.

If you already have an audience of some kind you could sell the course on your own website or social media platform. If not, use sites like udemy.com or skillshare.com to promote and sell your program.

An online course is a great way to monetize your skills and expertise to teach others how to build their own business using Amazon. On the downside, you do need to stay updated with the latest platform or regulation changes and be constantly updating your videos to reflect any new information.

How to get started making money with your own online Amazon course

Read through my step by step guide to building a 6 figure online course .

12. Sell Your Music on Amazon Music

If you’re a musician, a fantastic way to sell on Amazon without inventory is to sell your sweet sounds on Amazon music. Simply upload your media files and distribute across Amazon for people to purchase and enjoy!

Amazon Music in More Detail

Amazon music is a digital art platform for listening to and purchasing music. It is one of the largest and most popular music streaming services in the world, with millions of songs available to stream or download at any given time.

Artists can upload their own music to Amazon Music in order to reach new audiences and make money from their work, while listeners can access a wide range of content from both major and independent artists.

Amazon music is incredibly popular, with millions of people listening to it every day. This is largely due to the wide range of content available on Amazon, including everything from mainstream pop and rock songs to niche genres like electronic music and indie folk.

In addition to its popularity among listeners, Amazon music also has a strong following among artists, with many musicians choosing to sell their music on Amazon in order to reach a wider audience and make money from their work.

How to get started with Amazon Music

If you want to upload and sell music on Amazon, the easiest route is to use Tunecore , and follow these steps:

1. Sign up for a Tunecore account by visiting the Tunecore website and clicking on the “Sign Up” button. You will need to provide your name, email address, country of residence, and payment information in order to create an account.

2. Once you have created your account, login and click on the “Upload Music” button to begin uploading your music files to Tunecore. You can either upload individual tracks or whole albums at once depending on what works best for you.

3. Once your audio tracks are uploaded to Tunecore, they will be reviewed by their team of experts to make sure that they meet all of the necessary quality and licensing requirements. You will be notified via email once your tracks have been approved.

4. Once your music is ready to go, you can start selling it on Amazon through the Tunecore platform. Simply click on the “Sell” button for each track or album you want to sell, select Amazon as your sales channel, and enter any additional information required by Amazon such as a product description and pricing details.

5. That’s it – you can now sit back, relax, and start making money from your music on Amazon.

13. Sell on Amazon FBA

As an Amazon FBA seller you don’t have to physically hold onto inventory so I couldn’t write this article without mentioning this opportunity.

The Amazon FBA program provides fulfillment services to third-party sellers. The basic premise is, that you create or private label your own product, store it in Amazon’s warehouse, and they will ship it directly to the customer as a sale is made.

However, you will need to purchase and send plenty of inventory to the Amazon warehouse, so from a financial investment point of view, you do need to make a significant upfront investment into inventory, even though you don’t physically have to hold it.

Amazon FBA in More Detail

You don’t have to be a big corporation to sell products on Amazon. Any adult can apply to become a third-party seller, and reach the millions of shoppers that use the Amazon Marketplace every day.

You can use the Amazon platform in two ways. The first is a bit like eBay, you list products for sale which you keep stock of at home; except after you make a sale on Amazon, instead of shipping it to the customer, Amazon does that for you, and only charges a small selling fee.

The preferable way to start selling on Amazon is by signing up for their Fulfilment By Amazon (FBA) program. With this service, Amazon takes care of all the logistics for you, leaving you free to focus on other aspects of your business.

Not only can you store your products in an Amazon warehouse, but they will also ship the product to your customer for you after a sale is made.

The FBA program provides entrepreneurs with multiple benefits, including:

  • The ability to operate their business from any location globally without needing to organize their own warehousing.
  • Being relieved of responsibility for shipping and logistics so they can focus on business growth.
  • The ability to access the millions of customers that use Amazon Marketplace

How to get started with Amazon FBA

Read through my mammoth post on how my husband & I built a 7 figure Amazon business , download my free business starter checklist and take action!

Learn How to Build Your Own 7-Figure Amazon FBA Business

Part of the Junglescout suite of excellent FBA tools, the learning academy is a comprehensive video training library containing hours of content, including training videos, webinars, and interviews with successful Amazon sellers.

Whether you’re just starting your business, or growing your brand, get expert training from Amazon sellers without the hefty price tag.

14. Get Accepted Into the Amazon Accelerator Program

Build a private label business selling products under your own brand with the chance of your selling as one of Amazon’s ‘own brands.’

Amazon Accelerator in more detail

In 2022, Amazon expects to achieve around $25 billion in sales of its own branded products.

But have you ever wondered how Amazon finds the time to design and develop all these various products in so many categories?

The short answer is they don’t. What Amazon does instead, in many cases, is choose products designed by third-party sellers which already have strong sales.

In the past, Amazon has been accused of stealing designs from successful sellers. But Amazon also actively works with third-party sellers to bring designs as an Amazon ‘our brand’ product.

Obviously, having your product be selected as an ‘our brand’ on Amazon will significantly help your business. However, you may be wondering how you can get noticed by Amazon at all.

The Amazon Accelerator program is one way to join, which commits you to the possibility of Amazon buying your brand and then making you a supplier. This also means losing control over your IP because Amazon can make all future decisions about your brand and product, including taking over production.

However, on the brighter side, joining provides you with an array of tools that test, launch and market new products.

How to get started with the Amazon Accelerator Program

Head over the signup page for the Amazon Accelerator program.

15. Use FBA with the Amazon Wholesale Model

Sell high-demand branded products in bulk on Amazon Marketplace.

Amazon Wholesale in more detail

Most third-party sellers use the private label method, but the Amazon wholesale model is different. With this method, instead of designing and manufacturing your own product brand in China, you buy already existing popular branded products directly from the manufacturer to list for sale under FBA.

The Amazon Wholesale model is distinct from the arbitrage version mentioned in Ideas #1 & #17. With online/retail arbitrage, you find discounts on a limited number of products at online or physical stores. However, with Amazon Wholesale, you buy pallets of goods at wholesale prices.

Since you are selling items that come from existing brands on Amazon, the competition can be tough to beat. Since price wars occur often, margins usually stay low in this market niche.

In order to make a profit, you need to negotiate a lower price when buying your stock in bulk from the manufacturer. The cheaper you can get the product, the more money you will make down the line.

If you sell existing branded products, you don’t have to create listings or produce photos. You can use the listing that is already created and piggy-back off its ranking. However, some wholesale sellers like to improve the listing when it doesn’t rank well.

Profit margins are often slim for Amazon Wholesale sellers; as a result, some of them utilize both the FBA and FBM models and process order fulfillment themselves to generate a slightly better return than just relying on FBA.

For this reason, many people who do the Amazon Wholesale model have their own space to store product in large quantities. To truly make this a model in which you don’t need any inventory you’d need to rely on FBA and get the products shipped directly to the Amazon warehouses.

How to Get Started with Amazon Wholesale

To get started with the Amazon Wholesale model, read through this excellent Jungle Scout article on selling wholesale on Amazon.

16. Sell on Amazon Handmade

If you don’t want to buy or invest in any inventory but are a crafter and make your own products then Amazon Handmade could be for you.

Amazon Handmade in more detail

Following the success of Etsy , Amazon has launched a space for those that handmade artisanal products to sell their wares. Called Amazon Handmade , it requires a strict application process to ensure that the products you sell are genuinely handmade.

There is a straightforward fee pricing structure for sellers, the only fee charged to sellers is a flat referral fee based on the selling price of 15%.

You can sell all manner of products across several different categories, including artwork, baby products, clothing, bags, and jewelry. But you can’t use Amazon Handmade to sell digital products like e-books or any technology and electrical items.

Once you are accepted to the Amazon Handmade program, you are assigned your own vanity URL to list your products for sale.

You can increase traffic to your product page by sharing it on social media or writing about it on a blog. You can also promote your products to sell on Amazon using Amazon advertising services.

An advantage of selling handmade items opposed to, say, factory-made products is that you can design a multitude of objects but only produce them when you receive a customer order. This system enables you to maintain control over costs and not have to financially invest in inventory from the beginning.

Because you offer a handmade product that is high quality, your customers are investing in your skills and the fact that your product is exclusive. Therefore, they should be content with waiting until after you have finished making their purchase.

Some sellers have noted that the fees on Amazon are quite a bit higher than the ones charged by similar sites such as Etsy . However, Amazon has much higher traffic volumes, so this may be something you are prepared to live with in return for the increased exposure.

How to get started Making Money with Amazon Handmade

To get started, head over to the dedicated page for Amazon Handmade . For further information and a comparison with selling on Etsy, check out my guide on Amazon Handmade vs Etsy .

17. Retail Arbitrage

Similar to online arbitrage, this opportunity is close the bottom of this list as there is physical stock involved, although you can limit your exposure and minimize costs. The basic premise of retail arbitrage is to flip branded products for profit that you find discounted in brick-and-mortar retail stores.

Retail Arbitrage in more detail

You don’t have to limit yourself to selling only your own private label products as an Amazon FBA seller. You can also sell branded products that you purchase at a discount from large retailers like Walmart or Target.

Retail arbitrage is understanding the relationships between supply and demand. For example, a bigger store may have too much of an item in stock or need to free up space in their warehouse, so they lower the price significantly.

You can buy more than one of that item and send them into Amazon’s Warehouse for sale through FBA (Fulfillment by Amazon).

One thing to be aware of is that you won’t be able to sell every discounted item you find. Some brands restrict the reselling of their products on the Amazon platform. Plus, when you initially start selling on Amazon, you are limited to certain categories until you have built up a track record.

So before you buy anything to flip with FBA retail arbitrage, check that you have permission to sell it with the Amazon Seller smartphone app . You scan a product’s barcode to see the selling price on Amazon and if you can resell it.

There are a couple more caveats to this method, too. You are not guaranteed to find bargains every time you go looking for them. And delivering sizeable returns requires you to visit multiple stores to buy multiples of stock, so it’s a fair bit of work.

But, retail arbitrage is an accessible entry method for selling on Amazon without having to spend thousands investing in large chunks of inventory.

You can get to learn the ins and outs of trading on the platform, it requires little money to start, and you can use it as a way to build up some capital to launch another Amazon business.

How to get started making money from Amazon with Retail Arbitrage

To get started, register as an Amazon seller for your local marketplace, download the Amazon Seller app, hit the shops, and start scanning.

Also check out this very comprehensive retail arbitrage guide from the team at JungleScout.

Retail Arbitrage is one of the best Amazon side hustles for raising funds to move into the more profitable FBA model. If you’re looking for step by step training on how to get started with this opportunity, check out Jim Cockrum’s Proven Amazon Course , an affordable arsenal of tools and training on all things Amazon with a particular focus on arbitrage, both online and retail,

18. Trade Unwanted Items on Amazon Trade-In

Earn credit to spend on the Amazon store by trading in old, unwanted items.

Amazon Trade-In in More Detail

While technically not a way how to sell on Amazon without inventory, the Amazon Trade-in program is a way to earn credit to spend when shopping on Amazon.

The trade-in service only accepts certain items, which may differ depending on the country. For example, amazon.com marketplace users can trade in cell phones, Apple AirPods, books, and console games.

While on the amazon.co.uk site, you can only trade in Amazon devices like Kindle and Echo. So you will need to check first on your local Amazon website for what you can currently receive credit for.

With an understanding of what each marketplace will accept, you can begin a side hustle using a kind of arbitrage model. You can continuously monitor the Facebook local classified listings to see if there are potential trade-ins at a price where you could turn a profit.

You can also check out local thrift stores, boot sales, and garage sales for trade-in items at a reasonable price.

If you have old eligible products to trade in, Amazon will give you credit that you can use for other purchases on the site. You could also spend your Amazon credit on groceries and save your regular currency for other expenses like starting up another business.

How to get started

To make a start, check the Amazon Trade-In page for your local Amazon site to see what sort of items Amazon is currently accepting in your region.

How to Sell on Amazon Without Inventory: Pros and Cons

  • Ease of Setup : Learning how to set up an Amazon seller account is straightforward, letting you get started with selling without a hitch.
  • Amazon Prime Eligibility : Utilizing Amazon FBA for dropshipping or reselling makes your products Prime-eligible, attracting a larger customer base.
  • Sell Other People’s Products : You can learn how to sell other people’s products on Amazon through techniques like dropshipping or affiliate marketing, reducing the need for your own inventory.
  • Low Start-Up Costs : Knowing how to start Amazon selling without inventory means you avoid significant upfront costs related to manufacturing or stocking products.
  • SEO and Keywords : Amazon provides tools to help you integrate relevant keywords, making your products more visible to potential customers.
  • Limited Branding : Amazon storefront bio examples may show some customization, but your branding options are restricted compared to running your own website.
  • Dependency : Embracing only on “how to Amazon sell” in this method makes you reliant on Amazon’s ecosystem, which could be risky if policy changes occur.
  • Competition : The best things to resell on Amazon are often also the most competitive, requiring you to spend more on marketing.
  • Shipping and Dispatch : If you opt for FBA, you have to follow Amazon’s guidelines on preparing for dispatch, which may be stringent.
  • Fees and Commissions : While you might be looking for the best way to sell on Amazon, remember that FBA and other third-party services come with fees that can eat into your profits.

How to Sell on Amazon Without Inventory – Summary

Amazon is a force to be reckoned with and an incredible opportunity for you to build a business off the back of.

You don’t need thousands of dollars or thousands of units of inventory to generate a lot of income on the platform. The Mikkelsen Twins as an example have made well over seven figures selling self published and audible books on Amazon.

For myself and my husband building an Amazon FBA business resulted in life-changing income and financial freedom and there’s no reason it can’t do the same for you.

Hopefully, you’ve found this article helpful and have identified plenty of ways of how to sell on Amazon without holding any inventory.

Now, go make it happen!

How to Sell on Amazon Without Inventory – FAQ’s

How to sell on amazon without selling products.

Amazon isn’t just for those who have products to sell. One fantastic alternative is Amazon’s affiliate marketing scheme called Amazon Associates. Essentially, you can make money by steering folks toward products available on Amazon. If they make a purchase, you can earn a commission that goes up to 10%. It’s a solid way to cash in on your social media following or website traffic without having to sell a single product yourself.

What is the Amazon FBA platform and how does it help in selling products online?

Amazon FBA, which stands for Fulfillment by Amazon, is a platform that lets sellers store their products in Amazon’s fulfillment centers. Once a sale is made, Amazon takes over by packing and shipping the product to the customer, even handle customer service support. This allows sellers to focus on growing their business rather than getting bogged down by logistics. Customer reviews can be crucial in this business model.

B: Interestingly, you can even use Amazon FBA without inventory of your own by leveraging dropshipping or retail arbitrage. This makes it one of the versatile ways to sell on Amazon. However, it’s crucial to consider FBA fees when developing your pricing strategy for your products, as these can eat into your profit margins. Overall, Amazon FBA provides a streamlined approach for offering FBA products, saving you time and potentially boosting your sales.

Can you sell on Amazon without fulfillment?

Selling a product on Amazon isn’t tied exclusively to using their fulfillment services, like FBA (Fulfillment by Amazon). Instead, you can opt for FBM, which stands for “Fulfillment by Merchant.” In this model, you’re in control of storing, packing, and shipping your products directly to the customer.

FBM gives you more hands-on involvement in your business operations, which could be a great fit if you’re keen on managing your own inventory and shipping processes. However, keep in mind that you’ll also be responsible for customer service related to shipping and returns, which could add to your workload.

By choosing FBM for your business, you can save on Amazon’s storage and fulfillment fees, but you’ll need to factor in your own costs for these tasks. So, weigh the pros and cons to decide if this is the right path for you. Either way, the choice is yours, and both

Do I need to purchase inventory to sell on Amazon?

No, you don’t have to stock up on inventory to start selling on Amazon. There are alternative business models like offering digital products—think ebooks or audiobooks that customers can download. You can also opt for a dropshipping approach, eliminating the need for you to manage inventory or worry about storage fees.

Dropshipping also allows you to sidestep many of the responsibilities associated with shipping and customer service, as third party logistics providers can handle these for you. This model can contribute to a thriving online business while still delivering quality customer service and high customer satisfaction.

Whether you’re managing your own products or relying on dropshipping, Amazon’s fulfillment centers offer another path to take some of the shipping and customer service load off your shoulders. Ultimately, the route you choose will depend on your business goals and how hands-on you wish to be with inventory and customer relations.

How can I start selling print on demand products on Amazon?

You can absolutely venture into selling print on demand items using Amazon’s platform. This approach eliminates the need for physical inventory. You just focus on creating compelling designs, and those designs get printed onto products whenever a customer makes a purchase.

One of the biggest advantages here is the potential for good profit margins. Since you’re not holding inventory, you avoid storage costs, allowing you to price your products competitively. Plus, each time a customer purchases one of your print-on-demand items, it could boost sales for your entire product range.

Leveraging Amazon’s vast customer base can provide a significant lift to your print on demand business. By focusing on ways to provide excellent customer service, you can not only meet but also exceed expectations, thereby increase customer satisfaction. All in all, selling print on demand products on Amazon can be a lucrative and customer-friendly way to expand your business.

What is a third-party fulfillment center and how does it work?

A third-party fulfillment center is an external facility that takes on the roles of inventory management, storage, and shipping on your behalf. Often utilized by Amazon FBA sellers, these centers are responsible for storing your items, fulfilling orders, managing returns, and keeping an eye on inventory.

These centers integrate smoothly with Amazon Seller Central, allowing you a centralized dashboard to manage reselling on Amazon. Whether you’re involved in dropshipping and FBA, or sourcing products from reliable suppliers, a third-party fulfillment center can simplify your operations.

A third-party supplier often offers an array of services that extend beyond just shipping and storage. They can also help you tap into multiple sales channels while maintaining product quality. Overall, using a third-party fulfillment center can be a strategic move to streamline your business operations and focus on growth.

Can I sell digital versions of products on Amazon?

Yes, selling digital products such as ebooks and downloadable audiobooks is a popular way to sell on Amazon without maintaining physical inventory. This eliminates the need for warehouse storage and inventory management.

How does dropshipping work on Amazon?

Dropshipping allows you to sell products on Amazon without ever touching the physical inventory. When a customer orders a product from your Amazon listing, that order is automatically sent to a third-party dropshipping service, which then takes care of fulfilling the order.

This approach simplifies your selling process significantly. There’s no need to worry about tasks like “Amazon preparing for dispatch,” as the dropshipping service takes care of these logistical details for you.

For those wondering, “Can I sell products on Amazon this way?” the answer is yes. However, if you’re looking for more control or added features, Amazon FBA help resources are available to guide you on how to become Amazon FBA certified. This could offer a more comprehensive solution for your business, but dropshipping remains a viable, inventory-free alternative.

Do I need my own warehouse space to sell on Amazon?

You definitely don’t need a personal warehouse to become a seller on Amazon. The platform’s FBA program, as well as third-party fulfillment centers, can manage your inventory and handle the shipping for you, eliminating the need for your own storage space.

By opting for these services, you can direct your focus toward reaching potential customers and ramping up your marketing efforts. You won’t have to stress about holding inventory or managing shipping logistics, freeing you up to encourage customer reviews and respond to customer inquiries.

Moreover, using Amazon FBA gives you the added advantage of making your products available to Amazon Prime customers. This not only can boost your sales but also provides an avenue for valuable customer feedback, helping you continually improve your offerings and customer experience.

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Disclaimer: Please note this post may contain affiliate links, from which, at no additional cost to you, I may earn a small commission. Also as an Amazon Associate I earn from qualifying purchases. I only recommend products and services I’ve used or would use myself. If you choose to purchase from any of my links, thanks so much for your support! 😊

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Q: Is it possible to sell products on Amazon without holding stock? A: Yes!

But what exactly does “how to sell on Amazon without inventory?” mean? Well, the question can imply one of three things:

  • You own inventory but don’t want to go through the trouble of packaging, storing, handling, and shipping products.
  • You don’t own inventory but still want to sell products (manufactured by someone else) on Amazon.
  • You don’t own or want to own physical stock but still want to sell on Amazon (you’re interested in selling digital products) .

All 3 options are doable and legal under Amazon’s terms of service.

Continue reading to learn how to set up an online Amazon store and sell products without holding any inventory in-house!

How to Sell on Amazon without Inventory – Weighing the Options

Third-party sellers set up profitable Amazon stores by following a well-known seller blueprint:

Research a product 🡪 Purchase inventory in bulk 🡪 Run product ads 🡪 Make sales and revenue

And while this blueprint continues to work well for a lot of entrepreneurs, not everyone has the inventory management wit—and sometimes budget—needed to purchase, handle, ship, and maintain products. 

After identifying this bottleneck, Amazon allowed third-party sellers to create a store and sell products without inventory!

If you want to do the same, you can:

  • Enroll in the FBA (Fulfillment by Amazon) program.
  • Try dropshipping products 
  • Use a combination of FBM and third-party logistics (3PL) service providers
  • Sell digital products

Let’s explore each option in greater detail.

Option 1: Amazon FBA 

FBA stands for Fulfillment by Amazon and is the shipping option of choice for most third-party Amazon sellers. If you’re not a fan of packaging products, storing them in your garage, applying product labels (according to Amazon’s requirements) , and shipping out individual units each time an order comes in, then FBA is for you. 

Under the Amazon FBA program, once your stock is ready and awaiting dispatch, all you have to do is ship it to the nearest fulfillment center. From there, Amazon will pick, package your goods, store them safely inside a warehouse, and deliver them to buyers’ addresses. 

In short, you can invest more time and mental energies into building an attractive store and market your products both on and off Amazon. 

The convenience that comes with outsourcing logistics to Amazon comes at a cost known as FBA fulfillment fee s and varies according to factors like product weight and dimensions. The bigger and heavier a product gets, the higher the FBA fees. 

Despite the additional FBA seller fees, countless Amazon store owners still prefer to sell via FBA for the following reasons:

  • More sales: Amazon FBA sellers are eligible for free two-day Amazon Prime shipping. With more than 200 million Amazon Prime customers globally, your product gains visibility resulting in increased sales. 
  • Free customer support: Amazon is renowned for its excellent customer support services and holds non-FBA sellers to the same standard. With FBA, Amazon handles customer support on your behalf and frees you from the responsibility of responding to customer queries!
  • Access to large Amazon storage centers: FBA sellers can safely store their inventory inside large Amazon fulfillment centers found throughout the country. Each time an order comes in, Amazon will package and ship your products—you won’t even have to lift a finger!

The alternative to FBA is FBM (Fulfillment by Merchant) where you list products on Amazon but handle product storage, packaging, shipping, and customer support by yourself. FBA takes precedence over FBM unless you plan on selling large-dimensional or heavy products. In that case, FBM is more advantageous—but how do FBM sellers store inventory?

Option 2: Sell Products through Amazon FBM and Third-Party Logistics (3PL) Service Providers

If you want to sell on Amazon without managing inventory (and avoid the extra Amazon seller fees) , you’ll have to work alongside third-party logistics (or 3PL) service providers. These service providers store, pack, ship, and even handle customer support on your behalf (some 3PL service providers offer the package as the FBA program) . 

FBM sellers look to third-party fulfillment when: 

  • Amazon imposes inventory storage limits and you aren’t allowed to ship your whole inventory to a fulfillment center, or
  • Q4 is near and the inventory cutoff date is soon approaching (i.e. the date after which Amazon refuses to accept and store inventory at its fulfillment centers) ; however, you anticipate high-sales and require additional storage.

You should look to work with 3PL service providers only if it’s cheaper than Amazon FBA—but don’t count on that happening. Amazon operates one of the largest logistics networks in the world sprawling across different continents and has vast experience when it comes to shipping products. 

Plus, if Amazon messes up the shipping process, they’ll recognize their fault and reimburse you the amount whereas if the fault lies with a 3PL service provider, Amazon may not be so accommodating. 

What is the Minimum Quantity to Sell on Amazon?

There is no minimum shipping quantity to sell on Amazon under the FBA program. You could send just a handful of units to a fulfillment center to test how well a product sells. 

When you get serious about selling, then make sure to send as many units as Amazon allows (check your inventory storage limits first) . Otherwise, the cost to transport small batches of inventory from the place of manufacturing to a fulfillment center will set you back financially.

How Can I Make Money with No Inventory?

Amazon FBA is one of the best ways of making money online without holding inventory in-house. It’s possible to earn cash without purchasing inventory, but you won’t be able to create an asset and most definitely won’t be able to scale a business. 

Quick cash-grab schemes aside, Amazon dropshipping is one way to make money without purchasing thousands of dollars’ worth of inventory, but the selling model has its fair share of drawbacks. Read on to learn more about the Amazon dropshipping mode later on in the blog.

Do You Need a Warehouse to Sell on Amazon?

You need a warehouse to store inventory and sell on Amazon (Amazon dropshipping is an exception) . Now, you don’t need to own a warehouse to do business on the platform; Amazon has a program called FBA or Fulfillment by Amazon where it picks, packs, stores, ships orders, and handles customer support on behalf of third-party sellers. 

The second option is to partner up with a third-party logistics (3PL) service provider who basically does the same thing as Amazon FBA. However, given the size and complexity of Amazon’s logistics infrastructure, you’ll be hard-pressed to find a 3PL service provider that can match Amazon’s shipping times, offer a better pricing plan, or both. 

Amazon FBA vs. FBM: What’s the Best Inventory-less Way to Sell on Amazon?

The Amazon FBA vs. FBM debate (for sellers that own inventory but don’t want to store it at their premises) , boils down to whether you want to let Amazon handle and fulfill your products or a third-party storage and handling services provider.

It makes more sense to pay the FBA fees than a 3PL service provider because you can leverage superior shipping services and also advertise products, create new offers, and manage inventory, all from a single dashboard.

Option 3: Try Out Amazon Dropshipping

Options 1 and 2 offer solutions to sellers who want to purchase inventory without storing it in-house. Option 3, i.e. Amazon dropshipping, is for sellers who wish to list products and sell on Amazon without holding inventory at all. So what is Amazon dropshipping and how does it work?

Dropshipping as an Amazon Seller

With Amazon dropshipping, you don’t purchase inventory in bulk or store it at a warehouse. Instead, you create an Amazon storefront (also called a product listing or a product detail page) on behalf of a supplier or manufacturer. Then, each time an order comes in, you purchase the product from your manufacturer, who then ships it to the buyers’ address. 

Amazon dropshippers operate as agents or middlemen and usually have to dropship multiple products side by side to earn substantial profits. 

Amazon dropshipping is legal; however, you have to abide by the official Amazon dropshipping policy otherwise you could be penalized, or worse, have your Amazon seller account suspended.

Amazon’s dropshipping policy includes the following rules and regulations:

  • Enter into a legal agreement with your supplier whereby they agree to elect you (and you alone) as their sole dropshipping representative on all invoices, external packaging, and packing slips.
  • Remove all evidence of a third-party dropshipper on your products before shipping them out. This includes details found on external packaging, invoices, and packing slips.
  • Also remove any information or contact details belonging to a seller other than yourself, if present.
  • Do not purchase products from another online retailer and have them shipped to your customers.
  • Handle customer returns for your products
  • Comply and stay up to date with Amazon’s Seller Code of Conduct and other applicable seller policies.

Go through each of the above-mentioned points carefully and remain updated with Amazon’s official Dropshipping policy —but don’t jump into dropshipping just yet!

Every Amazon selling model has its advantages and disadvantages and Dropshipping is no exception. Read the following pros and cons to know what you’re getting into!

Pros of Dropshipping

  • Low investment required: It’s possible to start dropshipping with just a few hundred dollars in hand along with a letter of authorization from your supplier.
  • Easy to learn the ropes: Sellers don’t have to purchase expensive online courses or learn how to operate sophisticated software; you can get a good hold of the basics by watching free tutorials available on YouTube and elsewhere.
  • Multi-Channel selling: Dropshipping isn’t specific to Amazon like FBA—you can dropship a product from your website, eBay, and even social media channels.

Cons of Dropshipping

  • Stiff competition: Due to low barriers to entry like low starting and overhead costs, dropshippers face stiff competition across popular product niches on Amazon. Tough competition also always equals low profit margins.
  • No control over the business: Dropshippers don’t own the product, they act as agents or salespeople for their suppliers. As such, you cannot influence product quality or branding elements. 
  • Possible inventory woes: Just as you have little to no control over product quality, inventory management and fulfillment times are also beyond your scope of influence. The lack of real-time inventory updates could result in customers placing orders only for your supplier to run out of stock. Such situations damage the brand reputation and reduce the likelihood of repeat purchases.
  • Missing out on product promotions: Holiday seasons present sellers with an opportunity to run product promotions to boost sales and climb the rankings for relevant search terms. Unfortunately, as a dropshipper, you’ll have to watch your competitors capitalize on key holidays from the sidelines.

Dropshipping appeals to sellers who don’t want to own or store inventory and still want to sell on Amazon. But as they saying goes: you can’t have your cake and eat it too, i.e. you can’t forgo the responsibility of owning and handling inventory and still get to decide how to run the business.

And for many sellers, that’s the biggest downside of dropshopping—no ownership, no decision-making power, and no digital asset to call your own. 

Is Dropshipping a Career?

The answer depends on what you define as a career. If earning money online without creating a store or a business is a goal worth pursuing, then yes, dropshipping can be a career. However, if you want to create an Amazon store, grow a brand, and scale your business to new heights, then maybe you should look into Amazon Private Label. 

But what about sellers who want to go one step further? Entrepreneurs who don’t want to deal with physical inventory at all?

Option 4: Sell Digital Products 

Amazon is a virtual marketplace, so it’s natural to expect virtual products listed on its website. And one of the best parts about selling digital products is a lack of physical inventory. 

In a way, digital products combine the positives of private label selling (the chance to set up an Amazon business) and dropshipping (not having to purchase, store, prepare, handle, and ship physical stock) . 

Here are the types of digital products you can sell on Amazon:

You can sell both physical and eBooks on Amazon. Physical books (e.g. comics, textbooks, collectibles, hard and soft copies, etc.) are sold via FBA or FBM. On the other hand, digital copies can only be sold via Amazon’s Kindle Direct Publishing (or KDP, for short) program. 

KDP members can upload and promote their books through “print on demand” or digital. Our recommendation is go to with digital due to two main reasons:

  • The absence of a hefty upfront fee as is common with print on demand
  • Significantly higher royalties for publishers (up to 70%)

Best-selling Amazon eBooks have the potential to net you greater revenues than the sale of physical goods, but that depends on how well your content is received and how skilled you are at marketing your product.

Amazon eBook Guidelines

Amazon imposes strict KDP guidelines to ensure its customers have a positive purchasing experience. Make sure to operate within the following guidelines when selling eBooks on Amazon:

  • Create an attractive book cover that isn’t promotional, blurry, or doesn’t fit the book cover (either because it’s too small or too big to fit inside the frame) .
  • Check and double-check for any grammatical mistakes, typos, or repeating text. Use this nifty Amazon Kindle Previewer tool to identify mistakes or passages that need to be reworked.
  • Avoid formatting errors like in-line page numbering, forced alignment or uploading your files in other than DOC, HTML, or DOCX form. Rookie mistakes such as these damage the author’s reputation and invite negative feedback.
  • Do not upload content that is objectionable, e.g. hate speech, pornography, glorifying abuse, etc. For more details, view the official KDP Content Guidelines page .
  • Use metadata correctly and responsibly. Your eBook should be free from URLs or mentions of other books. Go through the metadata guidelines page at least once before uploading any content.
  • Finally, under no circumstances should you upload plagiarized or copy/paste content—it’s the fastest way of getting banned from the platform. 

Looking for a more in-depth guide on how to create an eBook on Amazon? Check out this Kindle Self-Publishing guide .

Digital Art

Aspiring artists, skilled photographers, and those talented at creating awesome designs can upload and sell their art on Amazon. Like KDP, you don’t have to own inventory—Amazon will create a product detail page, print your design on different products, ship inventory, and handle customer support, all at no extra charge. 

As a digital art content creator, you’ll earn royalties on sales depending on the marketplace and product type. Once you’re ready, visit the official Merch on Amazon page and sign up to enroll in the program. Because it’s an invite-only platform, you won’t be able to sell immediately—but don’t let that stop you from applying.

If your content is good, Amazon will get in touch with you soon enough. Since digital products are sold via the FBA program, you have the chance to advertise your offerings to millions of potential customers. As such, it’s imperative that you stick to Amazon’s guidelines . 

Here are a few major points to keep in mind:

  • Don’t upload content that infringes on others intellectual property (e.g. copyrights and trademarks) .
  • Ensure your product complies with all applicable local, state, and federal laws.
  • Avoid content that promotes or glorifies sexual violence, religious intolerance, hatred, human tragedy, illegal activities, etc.
  • Don’t use low resolution, blurry, or watermarked images.
  • Create designs with a maximum size of 25 MB, have print dimensions of 300 DPI, and use RGB colors.
  • Discard metadata unrelated to your review requests, design, or display your contact information.

Note: Getting an approval to sell on Amazon may take a few months. Once you get approved, revisit the official Content Policies page to ensure you’re still compliant as these policies may change over time.

Fancy yourself a musician? Sign up for a TuneCore account today. TuneCore is designed to help artists, labels, and managers promote their music through Apple Music, Spotify, TikTok, and more than 150 streaming and download stores worldwide.

To get started, go through this quick sign-up process and start uploading your tracks. You can distribute music on Amazon so long as you adhere to its preferred format and style guide . Also, make sure your compliant with the following rules otherwise Amazon may reject your uploads:

Don’t do the following:

  • Add email addresses, pricing, contact information, or URLs on the cover art.
  • Display logos of digital stores like iTunes or reference them by name.
  • Upload cover art that is blurry, low resolution, or doesn’t fit the frame.

Do the following:

  • The title of the release and artist name that appears on the cover art (if any) should match the exact details that were entered into TuneCore.
  • The cover art should only include the title and the artist name.
  • Upload a square cover art image that’s 1600 x 1600 pixels in dimension.
  • The cover art must be in RGB mode for color and black and white images.
  • The cover art should ideally be 300 dpi (72 dpi is the minimum) .
  • The cover art should also be uploaded as a GIF, PNG, or JPG image and you must own the rights to the image.

Note: It costs $9.99 to distribute a single and $29.99 for an album or EP on Amazon TuneCore.

This concludes our blog on the different routes sellers can take to sell on Amazon without inventory. All that's left now is to address the elephant in the room: which out of the 4 options is the best way to do business on Amazon without holding stock?

Although each method has its pros and cons, one option (or selling method) offers sellers greater returns and opportunities for growth than others: Amazon FBA Private Label.

Amazon FBA private label selling is the ideal way to sell without inventory as compared to the other options because:

  • In most cases, third-party logistics service providers cannot compete with Amazon on price and/or performance. If things go south, 3PL service providers may cover up for your financial loss, but cannot undo damages to product rankings resulting from negative customer feedback.
  • Dropshipping isn’t working for yourself as much as it is working for someone else. The inability to control product quality, shipment times, and brand image make it difficult to call dropshipping a ‘real’ online business. Plus, there’s little room for automation and increasing your income cap requires sacrificing additional hours. A proper Amazon business should free you from a 9-5 cycle, not put you back into one. 
  • The digital products selling model doesn’t feature the same drawbacks as the previous two options. However, not every seller can:
  • Write a compelling and informative eBook
  • Use paid software to create digital art
  • Create music or even play a musical instrument for that matter.

Based on these points, it’s fair to conclude that Amazon Private Label ticks all the right boxes—it’s a business you own, run, and reap all the benefits from. 

Amazon private label FBA has given numerous entrepreneurs the opportunity to establish highly profitable online businesses and will continue to do so for many in the future. If you want to add your name to the list, then you’ll need the help of a reliable FBA seller toolkit like ZonGuru.

ZonGuru simplifies each stage of your FBA seller journey and offers insights needed to make all the right decisions. Think of it as a collection of powerful FBA tools that ensures your FBA business runs like a well-oiled machine! 

Don’t take our word for it—try out a free 7-day trial and see for yourself!

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Mansoor ali.

Amazon FBA Consultant

Mansoor is an e-commerce enthusiast and problem solver. After completing numerous Amazon and online selling courses he applied his skillset to help sellers find financial success within highly competitive niches. Today, he offers Amazon Private Label consultancy services to businesses and solopreneurs around the world.

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amazon business model no inventory

The 5 Most Popular Business Models For Selling On Amazon

  • Comments Off on The 5 Most Popular Business Models For Selling On Amazon
  • by Jessica @ The Selling Family

The 5 Most Popular Ways To Start Or Grow An Amazon Business

We typically say there is no right or wrong answer to the question about which model is “best.”

A way of selling may be perfect for one person, and not appealing at all for another person.

There are so many factors to consider, including your own business experience, situation, tolerance for risk — and simply preference.

We personally chose retail arbitrage because we like it and are good at it, but that’s not the model for everyone.

In our Getting Started On Amazon Guide we use the retail arbitrage model.  You can still use the guide as a reference, even if you end up going with another business model.

In this post, we are going to help you sort through the choices by providing a definition of the most popular selling formats and the pros/cons of each one.

By the time you’re finished reading this article, you should have a good understanding of what model is the best fit for you, as well as where you can go to get started!

What Are The Different Ways Of Starting An Amazon Business?

Retail arbitrage.

Retail arbitrage is when you purchase a product at a retail store for one price and then sell it at a higher price on Amazon. It’s essentially “flipping” merchandise, or what is often described as taking advantage of market inefficiencies.

Usually, we manage this by finding clearance items at the local retail stores and then selling them on Amazon for closer to the regular retail price.

Less often, we are looking for items marked at regular price that we can sell for 3x or more on Amazon. This happens most in the “4th quarter.”  The time of year when people are in buying frenzies and desperate to find that “one hot toy” and will pay any price for it.

Remember the Hatchimal Craze of 2016 ?  The simple toy that was on every child's wish list and at regular stores (well, sometimes) for less than $60…

It was often selling on Amazon for over $200!

The way it works in the normal time of year is you might find an MP3 player on clearance at Walmart for $15 that sells on Amazon for $35. After Amazon fees and their cut, you might make a profit of about $10.

Pros of Retail Arbitrage :

  • This can be a really inexpensive way to get started selling on Amazon
  • No minimum investment into inventory to start
  • Easy business model to understand
  • Very “entry level”

Cons of Retail Arbitrage :

  • This can be the most time-consuming of the Amazon business models, as you have to physically find and restock inventory all of the time
  • Related to the above, this is not a passive source of income
  • Mileage; you have to drive around a lot, going from store to store

Retail arbitrage is our specialty! It’s where we got started and originally found success — Jessica was able to replace her income in a few months and then bring Cliff home from his job in about a year’s time.

How To Get Started With Retail Arbitrage

If retail arbitrage sounds like the perfect Amazon business model for you, then you are in the right place! Our site is made for sellers who do retail arbitrage!!!  Whoop whoop.

We have a free Amazon FBA Starter Course for those of you wanting to get all the details about starting on Amazon using Retail Arbitrage.

amazon business model no inventory

If you'd rather jump in with both feet, then our  Amazon Boot Camp  is perfect for you!

In this video course we take you step-by-step through the process of starting your Amazon business. Things you need to know before buying your first product, setting up your account, buying inventory and making sales.

All from the experience of growing our own six-figure Amazon Retail Arbitrage Business.

The course includes video modules, custom printables and checklists and a bonus section. More than 4,000 people have taken the course so you are in good company!

We also have an accompanying private Facebook seller group where you can ask questions and share your successes with thousands of other members.

For a much more in depth look at how retail arbitrage works, check out our Retail Arbitrage 101 post.

Online Arbitrage

Online arbitrage is very similar to retail arbitrage.

Instead of heading to your local Walmart store, you would instead go to walmart.com .  Then on the website, you are looking for items on clearance, just like if you were in the store.

Then, instead of scanning those products with your scanning app, you would compare the prices direct to the Amazon website to see if they are going to be profitable.  There are even lots of tools for making online sourcing easier .

There are hundreds of websites available to source from , from large chain stores whose names you may recognize to a bunch you may never have heard of.

One of my favorite things about online sourcing is the ability to buy from stores that we do not have locally, but have great deals we can flip on Amazon!

For example, we don't have Farm and Fleet here in California.  But I've ordered from there many times.

Once I get the products delivered to my doorstep, we can prep those items and get them right back out the door to the Amazon fulfillment center.

Pros of Online Sourcing :

  • A true work-from-home business model
  • More sourcing opportunities available, as you don’t have to physically drive from one store to another
  • Product is shipped to you, so you don’t have to lug it in your car — plus you usually receive boxes and packing materials that you can re-use when you ship your inventory to Amazon
  • Source at any time, not just during store hours
  • Good way to complement your retail arbitrage business and add more products to your Amazon store

Cons of Online Sourcing :

  • This is a little more difficult to learn at first because there is so much product available and you can spend a lot of time looking in the wrong places
  • It can be easy to buy too much inventory, since the online quantities available are usually much larger than in store
  • Sometimes more difficult to tell whether the product on the retailer’s website matches the Amazon listing, so you can be more prone to error when purchasing

Over the last few years, we’ve added online sourcing as a major way to find inventory during the first three-quarters of the year.

It allows us more flexibility to spend time with our young son, plus it complements the products we find when we do head to the store to do retail arbitrage.

We can also buy in larger quantities than we can in store.

How To Get Started With Online Arbitrage

Here is a list of our top tools for online sourcing  that can really help you as you add this business model.

We also have a list of stores that we recommend sourcing from.

If you want to take a more hands-off approach to online sourcing, I recommend checking out the automated scanning service called Source Mogul .  This service makes it so you can scan an entire online store with the touch of a button!

With wholesale, you typically buy direct from the manufacturer – or from a middleman – and buy in larger quantities in order to get a lower price than you would at a retail store.

This is usually a business model you'd tackle after selling on Amazon for awhile. With wholesale, it's extremely important to understand things like sales ranks and sales history.

With retail arbitrage and even online arbitrage, you'll hear us talk a lot about going wide instead of deep. What this means is that we'll recommend that you buy 3-5 of an item and test them out before buying more.

So you might buy 10 different products and get four of each — that's “going wide.”

But when you get into wholesale, you'll enter the world of “going deep.” In this Amazon business model, you'll often be required to place a minimum order worth hundreds of dollars.

The risk in wholesale is higher than in retail arbitrage because you tend to buy in bulk, so experience counts. You'd hate to buy 200 of an item and then be stuck with it!

Your research is similar to retail and online arbitrage, but again, you need to be extra careful and very confident of your purchases. It's important to fully understand how to interpret a Keepa and a Camel Camel Camel graph.

To learn more or for a refresher, check out  How To Read A Keepa Chart .

You may also wind up creating new listings with this type of selling, either for a single product or by combining two or more products into a bundle.

This is a way to reduce or eliminate competition, but it also takes some knowledge. Read our  Top 4 Tips For Creating A Profitable Product Page On Amazon  to learn more.

  • Lower purchase price means higher profit
  • As you find profitable items, you can reorder them over and over, thus increasing your product line every time you find a winner
  • When your purchase price is lower than other sellers, you have a better chance at winning the Buy Box because you can go lower on your sales price if needed
  • Buying in larger quantities allows your business to be more passive. It takes less effort to sell 100 of the same item than it does to sell one of 100 different items.
  • You can scale your business
  • Larger investment of capital
  • Bigger risk than retail arbitrage because you are buying larger quantities. There is always a chance you get stuck with large amounts of a product you can’t sell.

How To Get Started Buying Wholesale For Amazon

Even though we haven't personally decided to go this route, we are seeing many have huge success with Wholesale!

If you are ready to jump in right now, we recommend checking out our Wholesale 101 guide (FREE).

Private Label

Private label refers to the practice of purchasing a product and then putting your own branding onto it. Many times, Amazon sellers will purchase a product from China and then attach their own brand, logo and marketing to it.

This is one Amazon business model, along with wholesale, that has gotten more attention recently, as  the list of restricted items got larger and some sellers found themselves suspended (usually temporarily) for selling those restricted brands.

With Private Label, you own the brand!

You don't have to worry about getting in trouble for listing products that are banned . And you can pretty much wipe out your competition because you branded the product yourself and created the listing.

No more finding people undercutting your prices!

With this type of selling on Amazon, you'll need to learn about marketing in addition to becoming good at creating listings. It takes some work to launch a new product, but a lot of sellers think it's worth the effort.

The risk with Private Label is that you won't have a sales history or historical ranking to rely upon when you make a purchasing decision. So your research will be a little different and definitely more advanced than with retail arbitrage, online arbitrage, or wholesale.

You are basing most of your decisions on how well other listings appear to be doing, by using tools like Jungle Scout .

  • Little to no competition because you are the brand owner
  • More control over price
  • No worries about items becoming restricted
  • You are building a sellable brand
  • Can have multiple product lines in one brand as you find winners
  • Riskier than retail arbitrage and wholesale because the product typically has no ranking or sales history to draw upon
  • You have to market your products
  • You typically must purchase in larger quantities

How To Get Started Doing Private Label

If you want to get started with Private Label we recommend checking out our Private Label 101 guide (FREE).

Drop-shipping

When sellers drop-ship, they purchase from a retailer or wholesaler and then have the order sent to the customer.

This is the one business model listed that we actually DO NOT RECOMMEND!

Some sellers like this Amazon business model because they don't have to handle product. They feel there is a time savings for not having to prep and possibly a money-saver, too, if you've ordered enough product that you'd need to hire someone to help prep and ship it.

We stay away from it because we like to be more hands-on. With drop-shipping, you never get to inspect product before it gets shipped to the customer and you don't pack and ship it yourself, according to your standards.

You also run the risk of a customer making a purchase and then you aren't able to find that product if it happens to be out of stock wherever you meant to buy it from.

We've heard of many sellers getting suspended because of having to cancel to many unfulfillable orders, and customers who get mad once they realize the item is shipped to them from somewhere like Walmart when they ordered from Amazon.

  • Sellers don’t handle the merchandise
  • No upfront cost
  • Lack of quality control; seller doesn’t have the opportunity to inspect the product, nor to ensure that packing and shipping is handled in a way you would approve of
  • You run the risk of a product being out of stock and not being able to fulfill a customer's order
  • Many of the companies promoting “DropShipping” are actually running as MLM companies

This is not an area we have used or explored, so we don't have any recommendations for further learning at this time.

Let's Talk About It!

What is your favorite Amazon business model?

Enjoyed this post? Give it a share!

Jessica @ The Selling Family

About Jessica @ The Selling Family

Amazon Business Models: How to Choose the Right One?

Selecting a business model is step #2, if not #1, in your product launch. See, why.

Everyone wants to be successful on Amazon until they get to know what it actually takes. Of course, this is a joke. Jokes are half-meant, though. There’s no one-size-fits-all recipe to success on Amazon. At each step of your sales process, you face multiple choices. Thus, making an informed decision in the majority of cases means the right one.

Choosing between the types of Amazon business models is one such step. The business model is the way how you’re going to sell . In other words, this is an approach to your sales process. If you are a first-party seller on Amazon, this is already a pre-selected business model. 

However, third-party sellers (over half of sellers on the platform, according to Amazon itself), have to choose a business model before they start selling a product. 

First and foremost, the choice of the business model depends on the type of product you sell . If you’re thinking about creating a new design, re-branding, or improving the existing product, you’ll select between private label and handmade. 

In turn, if your intention is to resell a product from a supplier or manufacturer, you’ll select between retail arbitrage, online arbitrage, dropshipping, or wholesale. In such a case, the model depends on how much money you have to invest upfront, the time you're ready to spend daily to run your business, and many other criteria.

As a matter of fact, you can combine different models in one seller account depending on what product you sell. Oftentimes, sellers do so on Amazon.

Read our Amazon business models guide to find out the popular Amazon business models and Amazon business models guide examples.

What Are Amazon Business Models?

A business model is an overall approach to selling a product on Amazon. There is no universal business model for Amazon sellers. You’ll need to select one depending on the product you sell, the money you have at hand, and other factors.

Importantly, the business model determines the way how you structure your sales processes on Amazon.

You can use diverse models for different ASINs in your store , the same way you may combine various fulfillment methods – FBA and FBM . 

There are six most popular business models used by Amazon sellers .

Amazon business models are:

  • private label;
  • retail arbitrage;
  • online arbitrage;
  • dropshipping;

Related: 13 Ways to Make Money on Amazon in 2023

13 Rules of OA Product Research Tested by Pain and Gain of Amazon Seller

Why is business model important.

This is because choosing a business model influences ASIN’s price, hence profits. Profit is why you sell, at the end of the day.

The business model, together with the cost of goods and fulfillment method are the main components of the price policy . All other important things like PPC campaigns, fighting for the Buy Box , growing product ranking, and more, are the means to increase sales and outperform the competition. 

For example, if you’ve made up your mind to sell wholesale, your purpose is to find distributors and manufacturers and negotiate down the price for big lots of products. Bulk deals are attractive for suppliers , thus you can get a good price and profit margin . However, you’ll have to invest essential funds upfront. In addition, you’ll need to manage a lot of inventory and store it somewhere.

On the contrary, if you don’t have a lot of money to spend on your Amazon sales right away, the wholesale model is probably not a good choice for you. 

This situation is very typical for a lot of beginners on Amazon . They are not ready to throw a lot of cash into the Amazon business from the start and don’t want to deal with inventory management. In that case, they can go for drop-shipping. Many 7-figure Amazon sellers started from there. This model is relatively easy to set up. However, it implies a number of risks since you have almost no control of the fulfillment process.

That said, you see that to launch a successful product you need to both find a profitable product and figure out how you’re going to sell it. In other words, select one of the Amazon business models.

Amazon Business Models Guide  

On Amazon, some business models are more popular among merchants compared to others. 

For instance, 67% of sellers use private label , 26% - wholesale; 19% - retail arbitrage; and 17% - online arbitrage. The least popular are dropshipping with 9% and handmade with 6%. 

Some of the sellers use more than one business model in their store .

Below, you will find all six Amazon business models explained in detail.

Private label

What is private label.

A private label is basically a re-branding model. With this model, a seller finds an unbranded product, oftentimes from China, or an unknown brand, and creates their own brand out of it. 

This model is used by many retail corporations that operate chains of hypermarkets. These are, for instance, Walmart with its Great Value private-label brand, or Costco with its Kirkland Signature.

Alongside the re-branding, some sellers introduce changes to the initial product. Based on the customer reviews, they ask manufacturers to improve certain product features thus creating added value.

Compared to other models, the private label takes far more time and effort to start. At the same time, the competition is much lower and the profit margins are higher.

Note: Since private label merchants sell new products on Amazon, they need to create new listings. On the other hand, all other sellers, with the exception of handmade, can add their products to existing product listings.

Related: Amazon Glossary for Sellers

Do You Need a Business License to Sell on Amazon?

Example of Amazon private label product

Private label model: pros and cons

  • almost no competition because the brand is unique;
  • higher profit margin;
  • full control over price strategy;
  • a sellable brand is an asset;
  • possibility to create multiple product lines;
  • no chance of account suspension.
  • you have to create and optimize product listing;
  • the necessity for in-depth product research;
  • you need to manage inventory;
  • you have to market your products, including pay-per-click (PPC) campaigns;
  • getting product reviews for a new brand isn’t easy;
  • certain risks involved since for a new product you can’t see ranking and sales history.

Related:  Amazon Seller Central: Complete Guide

How to Sell on Amazon for Beginners - Complete Guide

Time and cost to launch a private label product.

On average, Amazon sellers spend $2,500 and up to launch private label products. Typically, it takes around three months to start.

How to launch private label product step by step

Step 1. Create a Professional Amazon Seller account.  Step 2. Enroll in the FBA program for Amazon to take care of picking, packing, and shipping the product (optional). Step 3. Make product research to find high-demand or low-competition niches. Step 4. Check the product’s cost of goods. Make sure it’s profitable. Step 5. Negotiate with a supplier to brand (and modify) the product. Step 6. Create a new product page. Step 7. List your ASIN and promote it.

Note : To calculate ROI and Profit Margin right on your Amazon product page you can use Seller Assistant App’s FBA & FBM Calculator.

Related: Amazon Product Hunting Tips in 2024

Best Product Ideas for Amazon FBA in 2024

Wholesaling, what is wholesaling.

Wholesale selling is a reselling model. It refers to buying products in bulk from the supplier at a discounted wholesale price. Once done, the wholesaler sells its items to retailers with a profit margin.

With this model, a merchant who buys wholesale has to procure big lots of inventory to get favorable price conditions from the supplier . As far as the per-item price is low, wholesalers are able to squeeze out increased profit margins when they resell inventory to retailers.

For example, if a retailer asks for a quote from the manufacturer for 200 T-shirts, the price will be $20 per unit. On the other hand, when the wholesaler asks for the same but for 5,000 T-shirts, the manufacturer will give them a discounted price of $10 per unit because of the big lot. Then the wholesaler resells 200 T-shirts to the retailer for $15 per unit and earns $5 on each unit. In this model, all three parties are making a profit .

As a rule, suppliers give priority to bulk orders. Therefore, wholesale sellers are in a good position in terms of pricing and delivery terms.

In addition, this model involves less risk compared to, say, private label. This is because wholesalers mostly sell popular products already existing on Amazon. They have trackable sales history that allows for predicting product sales. For the same reason, there’s no need to spend too much money on ASIN’s promotion. 

To track producr’s sales history and see if sellers had account health issues related to the product or brand you can use Seller Assistant App’s IP Alerts .

For the wholesalers, one of the problems is product and brand restrictions on Amazon . There are products you can’t sell or can sell only with Amazon’s permission. Read more in our article “ Amazon Restricted Products – Complete Guide for Sellers ”. Checking whether you can or can’t sell every single product is a headache unless you use a Seller Assistant App Bulk Restriction checker . 

 Seller Assistant’s Bulk restriction checker

Wholesale model: pros and cons

  • better chance to sell established brands (not restricted on Amazon);
  • fast to get up and running;
  • lower per-item price hence higher profit margins;
  • better chance to win the Buy Box due to discounted price;
  • lower advertisement costs;
  • good options to scale your business.
  • larger upfront capital investment;
  • you need to closely monitor expenses, revenue, and financials;
  • bigger risk due to large amounts;
  • high storage fees, on or off Amazon;
  • finding a reliable supplier can be a challenge.

Related: Best Product Ideas for Amazon FBA in 2024

Online Arbitrage vs Wholesale on Amazon. What is the difference?

Time and cost to launch a wholesale product

To start wholesaling, you have to invest a minimum of $2,500 for the start. On average, it takes around six weeks to launch a wholesale Amazon business.

How to launch wholesale product step by step

Step 1. Create a Professional Amazon Seller account. 

Step 2. Enroll in the FBA program for Amazon to take care of picking, packing, and shipping the product (optional).

Step 3. Make product research for popular profitable products.

Step 4. Find a reliable supplier who offers a good price.

Step 5. Check the products’ profitability via Seller Assistant App .

Step 6. List your products and start selling.

Related: Do You Need a Business License to Sell on Amazon?

Online Arbitrage Unit Economics: How To Calculate It

Retail arbitrage

What is retail arbitrage.

Retail arbitrage is a model when a merchant finds discounted or cheaper-priced products in brick-and-mortar retail stores and resells them on Amazon with profit.

For instance, if you find a product on Walmart , Big Lots, Target, or Home Depot, that costs $8, and resell it on Amazon for $15, this will be a retail arbitrage sale. The difference between the initial cost of the product and your price on Amazon should cover all Amazon fees and your profit margin. 

Though the model itself is quite straightforward, it has a number of hidden pitfalls. Despite it’s easy and cheap to start, it’s the least profitable model due to high competition. Also, it takes some time until you can get real profits. In addition, it requires a lot of patience to find a good retail arbitrage product.

However, around one-fifth of the sellers use this model. 

U.S. retail store

Retail arbitrage model: pros and cons

  • fast and easy to set up;
  • low startup cost;
  • minimum upfront investment;
  • low entry-level; 
  • full control of the inventory and sales process;
  • small risk.
  • very time-consuming model - you have to physically find and restock inventory;
  • relatively low-profit margins;
  • takes time to get real profit;
  • mileage - you have to drive from store to store;
  • finding a profitable product is not easy;
  • this model is not a passive source of income.

Related: 13 Ways to Make Money on Amazon

Easily Find High-Profit Products With Seller Assistant App

Time and cost to launch a retail arbitrage product

This model is the least expensive way to start on Amazon. You can launch a retail arbitrage business with $500 to 1,000. It’s also fast to set up. You can get a retail arbitrage business up and running in six weeks or less. 

On the other hand, you should keep in mind that it can take up to six months until you can make this business really profitable.

How to launch retail arbitrage product step by step

Step 1. Create an Amazon Seller account.  Step 2. Enroll in the FBA program for Amazon to take care of picking, packing, and shipping the product (optional). Step 3. Make product research for discounted products (“buy low sell high”). Step 4. Negotiate with the store for a good price. Step 5. Check the products’ profitability via Seller Assistant App . Step 6. List your product and start selling.

Related: How to Scale Amazon FBA Business with Virtual Assistant

Online arbitrage

What is online arbitrage.

The principle behind online arbitrage is similar to retail arbitrage - buy low, sell high. Yet, compared to the latter, online arbitrage sellers find their products on the internet, as the name suggests. Thus, this method lacks one of the biggest disadvantages of retail arbitrage – you don’t have to physically roam the brick-and-mortar stores.

There are a lot of places to find online arbitrage products . It can be online selling platforms like eBay, Etsy, and more. You can use Google trends, platforms with hot deals like Brickseek, internet stores of hypermarket chains like Walmart, or AliExpress’s best-sellers list. Also, you can browse single websites of different brands. In addition, Amazon itself is a good source for product ideas. 

Typically, for the online retailer, the most time-consuming thing is product research. Not only do you need to find a profitable product. You have to check if you can sell it on Amazon or not so that it’s not restricted . You need to see to it that the item isn’t bulk or oversize that involves extra shipping fees. You should to consider a lot of other things and make notes on every product in a hundred when you surf the internet and find them.

In fact, the majority of sellers use advanced tools and apps to simplify these tasks. There are seller tools that combine all these functions and help you with your product research. Optimal solution for these tasks is Seller Assistant app that combines product research features, an FBM&FBA profit calculator to check product profitability, Advanced IP Alerts to see if the product is hazmat, oversized, or has any other associated risks, and other features. It also allows making notes right on the Amazon Search Pages or Amazon Product pages.

Online arbitrage model: pros and cons

  • fast, easy, and relatively cheap to start;
  • you don’t have to physically roam brick-and-mortar stores for deals;
  • it’s a work-from-home business;
  • huge amount of product ideas;
  • it’s a good complement to other business models in your Amazon store;
  • you can learn how to sell on Amazon without big risk.
  • product research takes a lot of time;
  • prices on Amazon change all the time, which makes it difficult to keep sustainable profitability levels;
  • low-profit margins after Amazon fees ;
  • you can’t resell certain products or need approval;
  • the items you source may look different from what’s listed on Amazon.

Related: The Most Important Amazon Seller Metrics for FBA Businesses

Amazon FBA Fees

Top Amazon Product Categories

Time and cost to launch an online arbitrage product

This model is fast and inexpensive to start. You can launch it for $500 to 2,500 and get it up and running in about six weeks.

How to launch online arbitrage product step by step

Step 1. Create an Amazon Seller account.  Step 2. Enroll in the FBA program for Amazon to take care of picking, packing, and shipping the product (optional). Step 3. Make product research via Seller Assistant App for discounted products (“buy low sell high”). Step 4. Check the product’s profitability via Seller Assistant App.   Step 5. Source the product. Step 6. List your product and start selling.

Related: Amazon FBA and FBM Fees

Amazon FBA Selling Tips for 2024

Dropshipping

What is dropshipping.

Drop-shipping Amazon is a model when the seller lists a product on Amazon, gets an order from the buyer, and asks the supplier to ship it to the shopper directly. The profit margin comes from the difference between the wholesale price of the supplier and the retail price of a drop shipper.

The sellers prefer this model because it’s fast and easy to start, and they don’t have to deal with inventory management.

Drop-shipping model: pros and cons

  • fast and easy to start;
  • almost no upfront cost;
  • it’s remote work and a good source of passive income;
  • a big number of product ideas;
  • you don’t have to manage inventory.
  • lack of quality control; 
  • no fulfillment control;
  • risk of returns;
  • finding a high-demand product isn’t easy.

Related: Amazon FBA vs Dropshipping: which model to choose for a successful business

Online Arbitrage vs Dropshipping: Which Business Model Is Best For You?

Time and cost to launch drop shipping product

On average, drop shippers spend $500 to 2,500 to start. It takes longer than six weeks to get a business up and running.

How to launch dropshipping product step by step

Step 1. Create an Amazon seller account.

Step 2. Make product research via Seller Assistant App .

Step 3. Find a supplier and conclude an agreement to ship products to your customers.

Step 4. List a product on Amazon.

Step 5. Start selling.

Related: Amazon Seller Central vs. Vendor Central: All You Need To Know

How to List Products on Amazon - Complete Guide

What is handmade.

Handmade is a model when sellers create their own products “by hand” and list them on Amazon.

‍ Products can range from home decor to jewelry.

Example of Amazon handmade product

Handmade model: pros and cons

  • no competition because the product is unique;
  • you can create a brand out of your products;
  • you need to create and optimize product listing;
  • it can be hit or miss;
  • you have to market your products;
  • you may not have enough time to produce and sell products at the same time.

Related: How to Create an Amazon Seller Central Account

Amazon Account Health: A Guide for FBA Sellers

Time and cost to launch a handmade product

This business model takes around three months to get started, and handmade sellers spend less than $2,500 to launch on Amazon. 

How to launch handmade product step by step

Step 1. Register an Amazon seller account. Step 2. Create your product. Step 3. List a product on Amazon. Step 4. Start selling.

‍ What is Amazon Seller Account Health Rating?

How to Select an Amazon Business Model?

To choose the right business model, you need to consider several key factors. These are the budget you are ready to invest, the time you can dedicate to your Amazon business, the goal with your product, and the expertise you have in online sales.

Steps to select a business model

Step 1. Write down all the business models. Step 2. See what time and money you are ready to invest and cross out irrelevant models. Step 3. Carefully weigh up the pros and cons of each model. Step 4. Find your product and use the FBM&FBA calculator to define if it’s profitable or not with the model you selected. If yes, proceed to step 5. Step 5. List a product and start selling.

Related: What is Amazon FBM and How Does it Work?

How Does Amazon FBA Work. Is Amazon FBA worth it?

Amazon Holiday Selling Strategy

Amazon Global Selling: How to Sell Internationally

Patricia Lewis

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Amazon Sellers: Inventory Tips & Tactics For 2024 Success

Learn how inventory control and Amazon's IPI or inventory performance index to help manage your stocks and maximize profitability.

Inventory has always played a significant role in the way you sell on Amazon .

Running out of inventory can impact your organic ranking and can impact your advertising strategy.

Besides the potential loss of sales, poor inventory control also impacts the amount of inventory Amazon will allow you to send into the Fulfillment by Amazon (FBA) program.

Keep reading to learn more about:

  • How your Inventory Performance Index (IPI) score impacts your available storage volume.
  • What the IPI is, and how it’s calculated.
  • Recommended actions for improving your IPI score.
  • Tips for Amazon sellers who are new to Seller Central.

Amazon Limiting Sellers Storage Based On Storage Utilization

Amazon controls your storage capacity limits based on storage utilization and your sales history: 

Total Capacity Limit

This limits the amount of inventory you can restock to Amazon’s FBA warehouses in one shipment and the overall maximum number of units you can store at Amazon.

Accounts that have been active for less than 39 weeks are not subject to these restrictions.

It is important to note that this is only true for those accounts on the Professional Seller Plan.  Those with individual Seller Plans are limited to 15 cubic feet per month.

This limits the maximum cubic feet of storage space you have at Amazon . These limits are reviewed and adjusted monthly.

Any changes you can expect for your storage capacity for the following month will be announced on the third Monday of the month.

Included in your storage usage are the inventory currently stored at Amazon, inventory en route to Amazon, and any shipments that have been prepared but not yet sent to Amazon.

Screenshot of storage capacity monitor on Amazon Seller Central.

The Storage Volume is highly impacted by your IPI (Inventory Performance Index).

We will further discuss how your IPI is calculated later in this article.

IPI

Sellers who fall below the minimum criteria can have their storage limited. Operating with such limited storage can significantly undermine your sales forecasts.

We will outline the steps you can take to ensure you have sufficient storage for your high-demand season, maximizing your sales on Seller Central.

We’ll also review what you can do if you fall below Amazon’s set criteria.

You can find your limit by going to Seller Central, selecting Inventory, navigating to the Inventory Dashboard, and then selecting Inventory Performance under the dropdown for Inventory.

Screenshot of how to navigate to find your storage capacity on Amazon.

Your IPI score will be near the top of the page.

To reach your storage capacity, scroll to the bottom of the page and click on the small gray box labeled Capacity Monitor .

Success on Amazon Means You Have To Manage Your Inventory Levels Proactively

Amazon says that it considers the following criteria for your storage levels:

  • IPI Score and Sales Performance : Higher storage capacities are granted to accounts that consistently achieve a high IPI score.
  • Storage Utilization : In determining storage limits, Amazon considers your current inventory, inbound inventory, and shipments that are prepared but not yet dispatched.
  • Sales Volume : Amazon will also look at sales volume over time.

Improving Your IPI

If you have a low IPI score, know it will take time to improve your score.

IPI is a rolling average. It can take anywhere from 2 to 12 weeks to increase your score on Amazon, so planning ahead of time is essential.

This means if your IPI is below the 400 Amazon requires, you need to start taking aggressive action today.

This article will outline how to avoid having detrimental storage limits, how it happens, and what to do when you’re already below the threshold.

For those interested in Restock Limits, we’ll explore this topic in more detail later in the guide.

What Is The IPI (Inventory Performance Index), And Does It Affect Me?

The IPI will only affect those using Seller Central and FBA warehouses.

It does not affect those using Vendor Central , Kindle Direct Platform, or those selling on Seller Central by Merchant Fulfilling or utilizing Seller Fulfilled Prime for their items.

Inventory Performance Index (IPI)

The Inventory Performance Index (IPI) manages how well you control and manage your inventory at Amazon.

This metric is a 12-week rolling average. It looks at several components over three months.

Four components make up the Inventory Performance Index (IPI):

Excess Inventory

This is the most important metric as it measures where your profitability may take a hit due to storage fees and holding costs for slow-moving FBA inventory.

Excess Inventory percentages help sellers plan when to restock more or remove inventory from FBA.

An item is considered to have excess inventory when it has over 90 days of supply based on the forecasted demand. 

Sell Through Rate

This metric is just how it sounds. The formula that Amazon uses to calculate Sell Through rates is:

(Units Shipped In the Last 90 Days)/(Average Units on Hand Over the Last 90 days)

Stranded Inventory

This provides information on products that aren’t selling due to listing issues.

This occurs when your listing doesn’t meet Amazon guidelines.

In these instances, your products become stranded and unable to move while still incurring FBA storage fees.

In-Stock Inventory

Amazon looks at the percentage of time your products have been in stock during the past 30 days, with additional weight given to items that have sold more units over the past 60 days.

If you maintain a high in-stock inventory, it will result in fewer lost sales.

Four components of the Inventory Performance Index.

It is important to highlight that these components are not weighted equally.

Excess Inventory and Sell-Through Rate are the parameters that have the most significant impact on IPI, while Stranded Inventory and Restock Rates can play a minor role in the overall score.

This means you will get more movement focusing solely on the first two components rather than spreading your efforts equally across all four elements.

During the height of the pandemic, Amazon changed the minimum IPI to 500. IT has since reduced the minimum IPI back to 400.

However, Amazon can increase or decrease the minimum IPI desired score at any point in time.

For this reason, we advise our clients to aim for a total IPI of 600.

Your minimum goal should be achieving at least 50 points over the current IPI requirement.

Some product mixes make maintaining a high IPI easier than others. For example, if you are a small brand with many products that move consistently, your IPI will generally tend to be higher.

If you are a seller with a large product mix that changes often, it is the most challenging to manage.

Combatting Capacity Limits

If you’re currently experiencing a capacity limit, Amazon can increase your capacity limit for a specific period of time by submitting a request subject to Amazon’s approval.

It is important to remember that if the storage limit increase request gets approved, your account is subject to paying a “reservation fee” for each cubic foot of capacity requested, and it will get charged at the end of the specified period.

Such fee is subject to a credit depending on your sales achieved during the period (performance credits are earned at $0.15 for every dollar of sales you generate using the additional capacity.)

Another alternative is to continue selling items via merchant fulfillment or using other third-party sellers to move your inventory or send small shipments of your fastest, most profitable inventory to Amazon.

Further down in this article, we will highlight what you can do when your inventory performance is low, you are facing potential inventory limits, or if you’re new to Amazon.

Why Would Amazon Do This?

It seems like it would be counterintuitive for a company that is so focused on having as many products on its platform as possible to limit the amount of inventory you could sell.

However, as more sellers joined the platform and with rising FBA and Prime offers, overcrowding at the warehouses started to become a larger problem for Amazon.

Amazon sellers were attracted to FBA because of the low cost of storage rates. Sellers were using the FBA program as a cheap way to warehouse large amounts of inventory.

At first, Amazon tried to increase storage fees. Adding long-term storage fees dramatically increased the storage cost for merchandise aged over six months.

However, even with those changes, Amazon couldn’t curve the overcrowding and demand in its FBA warehouses.

As a result, it started to introduce storage limits in 2019.

From Amazon’s perspective, it wants to ensure customers have favorable shopping experiences and quickly get the products they want.

This means ensuring that the products  most likely to sell are available.

Amazon looks at how you have managed inventory in the past and whether customers are purchasing your products to determine how much space is allocated to you.

The better Amazon feels you are at managing your space at Amazon’s FBA warehouses, the more storage space you will be allowed.

What If My IPI Is Below The Current Threshold?

If your IPI is currently below the threshold or within 50 points of the lowest threshold, these are the actions we recommend.

The first step is to check the current threshold. As of the writing of this article, the current threshold for IPI is 400.

However, here’s the direct link to the policy so you can find the current threshold, as Amazon can change this at any time. You can find the current required IPI in Seller Support under the heading FBA Inventory Storage Limits (login required) .

You can review your current IPI score in Seller Central by going to Inventory, Inventory Planning, and then clicking on your IPI score .

IPI score in Seller Central.

Even with aggressive tactics, changing the IPI significantly can take 2 to 12 weeks.

Recommended Actions To Improve Inventory Performance Index (IPI)

Excess inventory – dump slow moving items.

Excess inventory is generally one of the top two reasons your IPI score could be low, since it is the most heavily weighted metric.

The first step to addressing excess inventory is to pull back inventory you don’t expect to sell.

Focus on stock-keeping units (SKUs) that have gone out of fashion or merchandise experiencing a significant demand drop, like seasonal products.

If you don’t expect it to sell within three months, you should pull back the inventory to sell on a different channel by creating a removal order.

You can also start to use the Multi-Channel Fulfillment (MCF) to fulfill your website orders from your Amazon stock.

Sometimes, it makes more sense to discount and/or advertise products to help them sell faster to remove them from your inventory rather than call back inventory from Amazon.

Optimizing a listing that is not moving can also help increase the sell-through rate.

A quick note on having Amazon destroy products – sometimes, the company will liquidate that product instead of destroying it.

If inventory control is an essential factor for your brand, we recommend pulling back the inventory even though it costs more.

While Amazon is great at logistics and moving items through its process, it isn’t great at returning items to sellers.

Often, items arrive damaged or mixed SKUs in multiple boxes, clogging up receiving departments.

If possible, we want to ensure that we’re proactively taking action to avoid pulling back inventory and risk inventory being damaged or unavailable to be sold for a long time.

Sell-Through Rate – Send Fast-Moving Items

Amazon looks at this to identify whether the items you’re selling are things customers want to purchase.

The way that we improve the sell-through rate is to send in small shipments of items that will sell out very quickly.

If you’re currently using LTL or FTL, we recommend that you move to small parcel shipments during this process so that you can send more frequent shipments without going out of stock for long periods.

As you’re restocking items, you want to prioritize those that will move quickly, sending small quantities of items that will sell out as soon as they arrive or shortly after.

This allows your overall sell-through rate to increase dramatically and significantly impact your overall IPI.

It is vital that no matter how fast you think a product will move through, as you send these products in, you’re testing small batches to make sure that things will sell at the pace you anticipate.

Inventory that’s being held in FBA warehouses and not available for sale affects your overall IPI.

Fixing stranded inventory can make a slight difference; however, if you need to move your IPI significantly, this component of the overall metric will only make a slight difference.

It would be best to address stranded inventory weekly or bi-weekly, depending on your general sell-through rate.

This is probably the most frustrating metric of the IPI because, basically, Amazon is telling you that you can’t restock items because they’re not selling fast enough.

At the same time, it’s trying to encourage you to ensure you stay in stock.

We have found that this metric is very lightly weighted, and you’re better off focusing on the two key metrics of excess inventory and sell-through rate.

There has been some debate about whether deleting previous SKUs can increase this; however, we have not seen that this significantly impacts the total IPI.

General IPI Notes

As you’re working to increase your overall IPI, it is important to remember that it can take several weeks to increase.

The IPI is an average calculated over 12 weeks.

You must give the IPI enough time to move before determining whether your actions are making a difference.

It can be tempting to check your IPI often. However, your IPI score is only recalculated once a week.

If you need to raise your IPI quickly or by a significant amount, you may need to take overly aggressive actions in pruning your inventory and pumping fast-moving items through your account to increase your score to the required amount.

You might have to also bid for a capacity increase.

You should only do this if you have the data to support being able to sell through that higher quantity of items so you do not incur extra charges.

Additional Options To Combat Low IPI and Storage Capacity Issues

Sometimes, this means utilizing third-party sellers to ensure that inventory can be available to customers with a Prime offer.

Some of the brands we work with have focused on selling their fastest-moving SKUs while they improve their overall IPI score and capacity limits.

Then, they utilized third-party sellers to carry their slower-moving items while they worked on increasing their averages.

We have several reliable third-party resellers we refer our clients to if it’s ever an issue.

This means that those accounts saw a faster increase in storage capacity as they were sending in inventory that was selling at a much faster rate and restocking regularly.

If you don’t want to utilize third-party sellers, the alternative is to increase your total number of merchant-fulfilled offerings.

Remember that Merchant Fulfilled offerings generally don’t compete well against FBA offers, so watch your competition to determine feasibility.

While many brands avoid third-party sellers because it may reduce control over their brand, in this instance, it can be an excellent tool to ensure that you don’t lose potential market share to other competing product lines.

Another step you can take is to allocate your FBA warehouse space to items with the highest margin and smallest dimensional size, as they are highly profitable and sell quickly.

Leaving items with lower profitability or moving slower through Merchant Fulfilled (MF).

Tips For New Amazon Sellers

If you’re a new seller coming to Amazon or moving from Vendor Central to Seller Central, start by sending small quantities at first.

You have a grace window of 39 weeks when opening your account.

However, you want to ensure you send in small amounts of inventory. A few cases per product can help you identify the overall sell-through rate.

There is no minimum for sending inventory into Amazon FBA. So, it is possible to test as little as one unit at a time to test products on Amazon.

Sending in small shipments does increase your overall shipping cost and can reduce profitability in the short term.

However, when you’re first investigating the platform, sending in smaller quantities can help you better understand your product’s demand and help avoid additional fees that can be required to call inventory back or pay for storage fees.

Once you have a better idea of your sell-through rate, you can start to increase the total sizes of your inventory.

It is a delicate balance to have enough inventory so that you don’t run out of stock but also that you don’t have excess inventory.

While, in general, you want to aggressively avoid stockouts, the impact of a low IPI score should take priority.

Monitoring Inventory Matters

To succeed on the platform, you must  take an active role in your Amazon inventory management.

In prior years, simply avoiding restocks was enough.

However, these new requirements require a greater focus on monitoring your sell-through rate and storage utilization on Amazon.

Prepare now to support your Amazon marketing and sales goals for the coming holiday season.

More Resources:

  • Amazon SEO: A Comprehensive Guide For Sellers
  • A Guide To Getting Started With Amazon’s Affiliate Program
  • Ecommerce Marketing: The Definitive Guide

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  1. How to Sell on Amazon Without Inventory: The Ultimate Beginner's Guide

    In this article, we'll break down how to sell on Amazon without inventory by finding your niche, selecting the right model and scaling to profitability. Table of Contents Understanding the Business Model of Selling on Amazon without Inventory Various Approaches to Inventory-Free Selling on Amazon Understanding Dropshipping: Amazon FBA:

  2. A Beginner's Guide to Selling on Amazon Without Inventory

    If you're an Amazon seller, you have several options for selling on Amazon without any inventory. This article sheds some light on how you can leverage this business model, the benefits of selling on Amazon without inventory, and ways to make this practice sustainable for long-term business growth. 5 Options for Selling on Amazon Without Inventory

  3. How to Sell on Amazon Without Inventory

    In this article, we outline several options for operating your Amazon business without holding inventory in-house. Continue reading to understand how to sell products online without inventory to reach your e-commerce business goals. Comparing FBA vs. FBM In the world of e-commerce, there are ways to build a brand without holding any stock yourself.

  4. How to Sell on Amazon without Inventory: The Easy Guide

    Selling on Amazon without inventory is a business model where a seller doesn't keep the products they sell in stock. Instead, when an item is sold, the seller purchases it from a third party and has it shipped directly to the customer. Here's a simple explanation of how it works: Listing products: The seller lists products for sale on Amazon.

  5. How to Sell on Amazon Without Inventory: A Comprehensive Guide

    1. Explanation of the concept: How to sell on Amazon without inventory 2. Understanding the basics of selling on Amazon Differences between traditional selling (with inventory) and selling without inventory on Amazon The role of third-party fulfillment in selling without inventory 3. Overview of different methods to sell on Amazon without inventory

  6. How to Sell on Amazon Without Inventory in 2024

    Create a seller account on Amazon. The journey begins by setting up a seller account on Amazon. Choose an Individual or Professional account, depending on your expected sales volume. Registering as a seller allows you to access Amazon's vast customer base and utilize various selling tools.

  7. How to Sell on Amazon Without Inventory

    There are 4 primary ways to sell on Amazon without inventory: dropshipping, Merch by Amazon (Print on Demand), Kindle Digital Publishing (KDP), and digital products. For anyone who wants to sell on Amazon but does not have a lot of capital to invest in lots of inventory upfront, this can be a great entry into the private label space.

  8. How to Sell on Amazon Without Inventory

    Instead, you manage everything in-house or (if you're committed to the no-inventory model) with a third-party logistics (3PL) provider. Benefits of selling without inventory ... By understanding the pros and cons of FBA, FBM, and dropshipping, you can choose the best path for your Amazon business. Start small, learn as you go, and scale your ...

  9. How to Sell on Amazon Without Inventory: A 5-Step Guide

    Running an Amazon business without inventory is commonly known as dropshipping. In simple words, the process works like this: a seller receives orders on Amazon and forwards them to a supplier. The supplier then ships the products l directly to the seller's customers. ... With this business model, there's no need to deal with managing ...

  10. How to Sell on Amazon Without Inventory: Learn All The Steps

    Dropshipping can provide a variety of advantages which makes it a desirable business model, such as: ... Learning the best ways to market on Amazon with no inventory or through an integrated Amazon platform will aid you in deciding what route is best for your next business venture. From using the FBA service to utilizing dropshipping, There are ...

  11. How To Sell on Amazon Without Inventory: A Comprehensive Guide

    Setting up an FBA or FBM Account: Create an Amazon Seller account, select your selling plan, enroll in FBA, or configure your account for FBM fulfillment. Creating Listings for Your Products: Sign in to Seller Central, go to "Inventory," click "Add a Product," and provide all necessary details for each product.

  12. How to Sell on Amazon Without Inventory: Easy Options to Make A Profit

    Without Inventory, You Can Focus On Your Amazon Business Selling Models for Amazon Without Inventory Keeping inventory may get increasingly challenging as ecommerce sales ramp up, so a practical choice is to find ways to avoid holding inventory in the first place.

  13. How To Sell On Amazon Without Inventory: Step-By-Step Guide

    You can sell on Amazon without inventory using FBA, third-party fulfillment centers, dropshipping, and digital products. Fulfillment by Amazon (FBA) is a service that offers online sellers the convenience of outsourcing storage, packaging, shipping, and customer service aspects of their business.

  14. How To Sell on Amazon Without Inventory: Simple Guide For 2024

    To create a product listing, open seller central and go to inventory. Next, click 'add a product'. When the add a product screen comes up, click 'inventory', then 'add a product'. Click 'create a new product listing' to complete the listing creation process.

  15. How to Sell on Amazon Without Inventory [Physical and ...

    ‍ The benefits of selling on Amazon without a physical product. 7 ways how to make money on Amazon without selling physical products. ‍ Ready to become a successful Amazon seller? Here we go! The Benefits of Selling Digital Physical Products on Amazon Without Holding Inventory

  16. How to Sell on Amazon Without Inventory in 2023; 18 Alternative Models

    No Inventory Required: Learn how to sell goods on Amazon without the hassle of managing inventory. Dropshipping: A popular alternative that eliminates the need for upfront inventory investment. Online Arbitrage: Buy low from other online platforms and sell high on Amazon.

  17. How to Sell on Amazon Without Inventory

    Selling digital products is the favorite business model for many Amazon sellers as it provides passive income and avoids any hassle with inventory. The most popular way to do it is by offering digital versions of books, but this category can also include downloadable audiobooks, printables, art prints, and music.

  18. How to Sell on Amazon Without Inventory (3 Strategies)

    Here are three business models for selling products on Amazon without inventory: Dropshipping Print on demand Digital products Let's check them out one by one, starting with dropshipping! 1. Dropshipping If there is one business model that fits best with selling products without inventory, it's dropshipping.

  19. How to Sell on Amazon Without Inventory

    You need a warehouse to store inventory and sell on Amazon (Amazon dropshipping is an exception). Now, you don't need to own a warehouse to do business on the platform; Amazon has a program called FBA or Fulfillment by Amazon where it picks, packs, stores, ships orders, and handles customer support on behalf of third-party sellers.

  20. Amazon Business Models & Types of Seller Accounts

    There are six popular Amazon business models sellers use to sell products on the platform (detailed below), and Jungle Scout's survey of over 2,600 Amazon sellers reveals the breakdown of which business models most Amazon sellers use to sell on Amazon. Private Label: 54%*. Wholesale: 26%. Retail Arbitrage: 25%. Online Arbitrage: 24%.

  21. The 5 Most Popular Business Models For Selling On Amazon

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  22. Amazon Business Models: How to Choose the Right One?

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  25. Daniella Britt

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