Learning how to sell on Amazon without stock is a fantastic way to start an Amazon business and e-commerce journey. It’s low-risk, and you can learn how to sell products online without worrying about holding an inventory of products, inventory management or dealing with shipping logistics.
Additionally, starting an Amazon seller business without inventory can help you streamline your online business, leaving you to focus your attention on more important aspects like marketing and customer service.
When learning how to sell products on Amazon without inventory, the first step is to sign up for an Amazon store seller account. This will give you access to Amazon’s marketplace, where you can list your products and start selling. Once you have done that, you can start selling on amazon without inventory with the help of four potential strategies. These strategies are:
- Fulfillment by Amazon (Amazon FBA)
- Retail Arbitrage through an Amazon business store
- Digital Products
- Third Party Logistics
In this post, I will share how these strategies can help you learn how to sell on Amazon without inventory so you can decide which option might be best for you and your business needs.
Dropshipping is a tried and true method for Amazon sellers. It’s been so popular that I recall seeing many ‘courses’ teaching how to sell on Amazon without inventory management using dropshipping a few years back – most of them overpromising and underdelivering.
Dropshipping was around far before Amazon started, so it seems like an obvious place to start if you want to explore third party fulfillment.
Dropshipping on Amazon involves finding products you can source from a dropship supplier and listing them for sale on Amazon. When an order is placed, you simply contact your supplier, and they will ship the product directly to your customer on your behalf.
There are a few things to be aware of if you’re thinking about using dropshipping:
- You’ll need to find a reputable dropship supplier that can provide quality products and good customer service.
- You’ll need to consider the cost of goods from your supplier into your retail price.
- You’ll need to manage customer service and returns yourself, as your supplier will not be handling these for you.
Benefits of Dropshipping
There are a few key benefits of dropshipping that make it an attractive option for learning how to sell on Amazon without inventory:
- The low startup cost for your e commerce business. Utilizing dropshipping to sell is one of the lowest cost options to begin selling online and quickly realizing a profit
- You don’t need to pay for any inventory upfront, so your only costs will be listing fees and the cost of goods from your supplier.
- You can quickly test different products for marketing purposes without making a large upfront investment.
- You can start up quickly and easily without a lot of experience.
Cons of Dropshipping
There are also a few potential downsides of dropshipping to consider before utilizing this method to learn how to sell on Amazon without inventory:
- Your reputation is in the hands of your supplier. If they provide poor quality products or bad customer service, it will reflect poorly on your business.
- You’ll need to invest time in finding a reputable supplier, which can be challenging if you’re sourcing products from China.
- There is potential for high customer churn, as customers may not come back to your Amazon store if they had a bad experience with a product they purchased from you.
- You’ll need to manage your own customer service and returns, which can be time-consuming.
How to Sell on Amazon without Inventory with Dropshipping
If you’re interested in using dropshipping for selling on Amazon without inventory, there are a few steps you’ll need to take:
- Find a reputable dropship supplier. This is perhaps the most important step, as your supplier will handle your inventory and shipping.
- You’ll need to find a supplier that provides quality products and good customer service.
- You can source suppliers locally or from China through sites like Alibaba.
- Create listings for the items you want to sell. Be sure to factor in the price of goods from your supplier into your retail price.
- When an order comes in, contact your supplier, and they will ship the product directly to your customer on your behalf.
- Manage customer service and returns yourself, as your supplier will not be handling these for you.
Dropshipping is a great way to learn how to sell with Amazon without any inventory. Setting up and starting is relatively simple, and very little upfront investment is required.
Fulfillment by Amazon (Amazon FBA)
Today, one of the more popular methods of selling on Amazon without inventory is through fulfillment by Amazon, otherwise known as Amazon FBA business.
With Amazon FBA, you will fedex your product line to Amazon’s fulfillment centers, and they will store, package, and ship your products for you. Amazon will also handle customer service and product returns on your behalf. This method is much easier than dropshipping because you don’t have to worry about any of the third party logistics yourself or manage customer service; you just need to provide the product and get it to the Amazon fulfillment centers and Amazon will do the rest. It’s a great way to sell.
Benefits of Amazon FBA
There are several key benefits of using Amazon FBA to for Amazon sellers:
- You don’t have to worry about any of the third party logistics, as Amazon manages much of the e commerce process.
- You can make use of Amazon’s Prime shipping, which will give you a significant leg up on the competition.
- Amazon will also handle returns and customer service for you, making it a very hands-off approach.
- You have the benefit of boosting your presence and product listings by utilizing Amazon’s powerful search engine.
Cons of Amazon FBA
However, there are also some potential downsides of Amazon FBA to consider:
- It can be costly to use, as there are fees for storage, shipping, and returns.
- You’ll need to carefully calculate your margins to ensure that you’re making a profit.
- You’ll be beholden to Amazon’s rules and regulations, which can change anytime.
- You will need to pay referrals and commissions for using the Amazon FBA service, which can eat into the profit margins.
How to Sell on Amazon without Inventory Using Amazon FBA
If you’re using Amazon FBA, there are a few key steps you’ll need to take:
- Research the products you want to sell and find a supplier. You can source suppliers locally or from China through sites like Alibaba.
- Create your product listings on Amazon. Be sure to factor in the cost of goods from your supplier into your retail price.
- Contact your supplier when an order comes in, and they will ship the product directly to an Amazon fulfillment center.
- Amazon will then store, package, and ship your product to the customer on your behalf.
Sell on Amazon through Retail Arbitrage
Another option for selling on Amazon without inventory is through retail arbitrage. This involves finding products at retail locations that you can then turn around and sell for a higher price.
Retail arbitrage can be a great way to start selling on Amazon without any upfront investment. You can find products at local retail stores, garage sales, or even online through sites like eBay or Craigslist. Once you’ve found a product, you can then list it on Amazon and start making sales.
Benefits of Retail Arbitrage
There are several key benefits of retail arbitrage, including:
- No upfront investment is required. You can find products to sell at local retail stores or even online.
- You can get started quickly and easily. There’s no need to source products or create listings; you can just find products and list them on Amazon.
- You can test out different products to see what sells well before investing in any inventory.
Cons of Retail Arbitrage
However, there are also some potential downsides of retail arbitrage to consider:
- It can be difficult to find products with a high enough margin to make a profit.
- You’ll need to invest time in finding products and then listing them on Amazon.
- You’ll need to factor in the cost of shipping when you’re pricing your products.
- You’ll be competing against other sellers who may be selling the same product for less.
Retail arbitrage can be a fantastic option if you find the right product. But it’s important to remember that you’ll need to find products with a high enough margin to make a profit, and it can take some time to find one that proves profitable.
Sell Digital Products
Another low-cost method of selling on Amazon without any inventory can be through digital products. Digital products are files that can be downloaded digitally, such as eBooks, online courses, PDFs, print on demand products and more.
If you have a digital product that you think would be a good fit for the Amazon marketplace, you can list it for sale on Amazon. Once a customer purchases your product, they can download it immediately.
Benefits of Digital Products
There are several key benefits of selling digital products on Amazon, including:
- You can get started quickly and easily. There’s no need to source products or create listings; you can just create your product and list it on Amazon.
- You can reach a global audience. Since digital products can be downloaded from anywhere in the world, you can sell to customers around the globe.
- There are no shipping costs. Since digital products are downloaded, there are no shipping costs involved.
- You can automate your business. Once your digital product is made, you can set up automated delivery so that customers receive their products immediately after purchase.
Cons of Digital Products
However, there are also some potential downsides to consider before selling digital products on Amazon:
- It can be difficult to create a digital product from the beginning.
- You’ll need to create a listing for your product and market it effectively.
- You may need to provide customer support for your product.
- Some markets can be overly saturated and competitive to make money in
- You’ll most likely have to pay fees and commissions on sales
Selling digital products on Amazon can be extremely lucrative if done right. But it’s important to remember that you’ll need to create a quality product and market it effectively to make sales.
Third Party Logistics (3PL)
Finally, another option for how to sell with Amazon is through third-party logistics (3PL).
3PL is a service where you partner with a company that will store, pick, pack and ship your products for you. This can be a great option if you don’t have the space to store inventory or if you don’t want to deal with the hassle of shipping products yourself.
Benefits of Third-Party Logistics
There are several key benefits to using third-party logistics, including:
- You don’t need to store or ship products yourself. This can save you time and money.
- You can use an existing logistics infrastructure. This can save you money on shipping and logistics costs.
- You can outsource customer service. This can save you time and money on dealing with customer inquiries.
Cons of Third-Party Logistics
However, there are also some potential downsides to be aware of before using third-party logistics, including:
- You’ll need to find a reputable and reliable 3PL partner. This can take time and research.
- You’ll need to pay for the 3PL service. This can increase your costs.
- You’ll need to manage your inventory. This can be time-consuming.
If you’re looking for how to use Amazon to sell without inventory, third-party logistics can be a great option. But it’s important to remember that you’ll need to find a reputable and reliable 3PL partner, and you’ll need to pay for the service.
There are several ways to become successful selling Amazon with no inventory. Each method has its own benefits and drawbacks that you’ll need to consider before deciding which is right for you. But digital products and third-party logistics are two great options if you want to get started quickly and easily.
Have you had success with any of the methods I have discussed above? If so, let me know which methods you think are best. I’d be interested to know!
Frequently Asked Questions
Do you need to have inventory to sell on Amazon?
No, you don’t need to have inventory to sell with Amazon. There are several ways to sell with Amazon without any inventory, including through digital products and third-party logistics.
Can you dropship on Amazon?
Yes, you can dropship on Amazon. Dropshipping is a method of selling products online where you don’t need to carry any inventory. Instead, you partner with a supplier who will ship products directly to your customers.
What is the best way to sell on Amazon?
There is no one “best” way to sell with Amazon. Each seller will have different needs and requirements. Some sellers may find digital products the best way for them, while others may find that third-party logistics is a better option. It depends on your unique situation.
What are the fees for selling on Amazon?
The fees for selling on Amazon vary depending on the product category and selling method. For example, sellers using the Fulfillment by Amazon (FBA) service will pay fulfillment fees, storage fees, and other additional costs.
How do I start selling on Amazon?
If you want to start selling on Amazon, you’ll first need to create an Amazon seller account. From there, you can choose what products you want to sell and how you want to sell them. You can also sign up for the Fulfillment by Amazon (FBA) service if you want to use that option.
How do I get more sales on Amazon?
You can do a few things to increase your sales on Amazon, including optimizing your listings, running ads, and offering discounts.
Does Amazon FBA require inventory?
No, you don’t need to have inventory to use Amazon FBA. You can use the Amazon FBA service without carrying any inventory yourself. This can be a great option if you don’t want to deal with the hassle of storing and shipping products yourself.
Can just anyone sell on Amazon?
Yes, anyone can sell on Amazon. You’ll need to create an Amazon seller account, and then you can start listing products for sale. There are a few restrictions – you must be at least 18 years old and have a valid credit card.