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How To Sell On Amazon Without Inventory? Save Money On Storage

Space costs money. Investing in the space needed to store products can be one of the hardest things for small eCommerce businesses to do to keep making money. If you want to know how to sell on Amazon without inventory, you are in the right place.

Feb 01, 202326.6K Shares380.8K ViewsWritten By: Alastair Martin
Jump to
  1. Why Should I Sell On Amazon?
  2. Benefits Of Selling On Amazon Without Inventory
  3. What Is Dropshipping?
  4. How To Sell On Amazon Without Inventory?
  5. Dropshipping On Amazon
  6. Use Amazon's FBA Program
  7. Try A Third-Party Logistics Company
  8. Sell Digital Products On Amazon
  9. People Also Ask
  10. Conclusion

Space costs money. Investing in the space needed to store products can be one of the hardest things for small eCommercebusinesses to do to keep making money. If you want to know how to sell on Amazon without inventory, you are in the right place.

To make sales, you need to be able to give customers what they want when they want it. In many cases, if you want to make more money, you need to buy enough goods to get the wholesale price.

But you have to pay for more storage space the more items you buy. That is unless you choose a way to run your businessthat doesn't require you to store the goods yourself.

Why Should I Sell On Amazon?

Amazon logo and a person holding a phone
Amazon logo and a person holding a phone

Selling on Amazon is a great way to make money, and we'll explain why. We're talking about a company that has been around for more than 20 years and has been through a lot of ups and downs that have made it worth more than $300 billion.

Walmart, Sears, and Target are all well-known companies. Well, Amazon is bigger than those three companies put together, so it's like a store that's always there for you.

We tell you this because more than half of the products the company sells are made by outside companies. This means that you can make more money without having to deal with all the logistics that e-commerce requires.

Amazon sends out more than 1.6 million packages every day, and a few of them could be yours. Customers are more likely to buy from you if they see that you work with this e-commerce giant, so don't put it off.

Benefits Of Selling On Amazon Without Inventory

Most people think of Amazon as a website where they can buy almost anything they need, from books to clothes to electronics. But what most people don't know is that Amazon is also a great tool for sellers. Amazon has a number of benefits for people who want to sell without stock.

This is a big deal because the traditional businessmodel of buying inventory and then selling it to customers doesn't work for a lot of companies. There is another option, though, and that is to sell on Amazon without stock. This kind of business model has a number of pros:

No Need For Upfront Investment

When you sell without stock, you don't have to pay for it upfront, which frees up cash flow and lowers risk.

More Flexibility

Dropshipping lets businesses get goods from many different suppliers, which can help them make more money.

More Focus On Marketing And Customer Service

With no inventory, a business can focus on marketing and customer serviceinstead of logistics and fulfillment. In other words, selling without stock on Amazon can be a smart way to grow your business.

A Huge Customer Base

One of the best things about Amazon is that it gives users access to a large group of interested customers. Amazon lets sellers reach a lot of potential buyers because it has more than 310 million active users.

It’s Safe And Reliable

Also, Amazon has built a reputation for being a safe and reliable place to do business, which gives buyers and sellers confidence.

Protection For Sellers

Last but not least, Amazon protects sellers from fraud and chargebacks, which helps reduce risk. Selling on Amazon without inventory can be a great way to start a business or grow an existing one for these and other reasons.

What Is Dropshipping?

Dropshipping is a way for stores to fulfill orders when they don't keep the items they sell in stock. When a store uses the dropshipping model to sell a product, it buys the item from a third party and has it sent straight to the customer. So, the seller doesn't have to deal directly with the product.

The biggest difference between dropshipping and regular retail is that the seller doesn't stock or own the inventory. Instead, the seller buys what they need to fill orders from a third party, usually a wholesaler or manufacturer. Spark Shipping's guideto dropshipping fulfillment goes more in depth on how this process works.

How To Sell On Amazon Without Inventory?

How To Sell On Amazon Without Inventory in 2024 (For Beginners)

The following methods have little to nothing to do with real inventory. Which one will help your business the most?

Dropshipping On Amazon

Amazon Dropshipping in 2024: A Step-by-Step Guide For Beginners

Even though FBA takes care of shipping and storage, you still have to figure out how toget your products to Amazon. Look into drop shipping if you'd rather not even do that much. With drop shipping, you work with a supplier, usually a manufacturer, who sends the product directly to the buyer.

In this kind of relationship, your main job is to market the business and help customers. Your job is to build a brand on Amazon and make product listings that look good and make people want to buy. Then, when a customer buys something, it is sent out by the drop shipper.

Advantages Of Using Dropshipping On Amazon

  • Dropshipping lets you sell products without keeping any inventory, so you don't have to worry about storage costs or products getting damaged.
  • Dropshipping can be easier to start because you don't have to buy stock right away.
  • Lastly, dropshipping gives you more freedom in what you can sell because you don't have to stick to what you have in stock.
  • Dropshipping also lets you sell through multiple channels, such as Amazon, Walmart, Etsy, your eCommerce website, or social media, so you can reach a larger number of customers.
  • Dropshipping lets you run your business from anywhere with an internet connection since all the business is done online and the manufacturer or wholesaler handles the shipping.
  • Since you don't have to buy inventory right away, you have more freedom to grow and scale your business at your own pace.

Disadvantages Of Using Dropshipping On Amazon

  • Competition can make it harder for your eCommerce business to find products.
  • Dropshipping can be less profitable than selling products you keep in stock because many other people sell the same thing, forcing sellers to cut their profits to stay in business.
  • Dropshipping can also make it take longer to ship items, which can make customers unhappy.
  • Overall, it's important to weigh the pros and cons of dropshipping before deciding if it's right for your business.

Use Amazon's FBA Program

Fulfillment by Amazon - How it works

Using the fulfillment by Amazon (FBA) service is the most obvious way to sell on Amazon without keeping your own stock. FBA lets you hire Amazon fulfillment centers to store and ship your products for you. If you use FBA, you will have to pay Amazon more in fees.

When you add up the cost of space to store inventory and the time it takes to organize and ship it, these fees quickly add up. But as a bonus, Amazon Prime status is given to products sold through FBA. This can help you move up in Amazon's rankings and make more sales.

Even if you use FBA, you will probably still have to deal with inventory as a middleman between the manufacturer you buy from and Amazon

To meet FBA guidelines, you need to make sure your products get to Amazon in the right kind of packaging. But you probably won't need to pay for more warehouse storage space to do that.

Advantages Of Using Amazon's FBA Program

  • You can reach Amazon's huge number of customers.
  • Amazon takes care of shipping and fulfillment.
  • Amazon takes care of storage and order management.
  • Amazon is a brand that is known all over the world for its fast shipping and great customer service.

Disadvantages Of Using Amazon's FBA Program

  • Fees can be cut into earnings.
  • Amazon has rules and requirements that are very strict
  • You might need to buy more packaging and labeling materials.

Try A Third-Party Logistics Company

A third-party logistics company, or 3PL, does pretty much the same thing that Amazon's FBA program does. You send the goods to their warehouses, and they store and ship them for you.

For some Amazon sellers, it might not make the most sense to use a 3PL provider. Amazon can usually offer better prices than other companies because it has so many warehouses and runs them so well.

But there are many times when a 3PL company might be the best choice for you, especially if you sell your products on more than one platform. You might want to compare their prices and terms so you know what you can do.

Advantages Of Trying A Third-Party Logistics Company

  • More freedom for management
  • Save time so you can work on other business matters.
  • Scalable

Disadvantages Of Trying A Third-Party Logistics Company

  • Not being able to keep track of physical inventory
  • Less freedom in how products are sold
  • Not being able to check on quality all the time
  • May have high costs to start up

Sell Digital Products On Amazon

How To Sell Digital Products Online [COMPLETE Step-by-Step Tutorial For Beginners]

If you want to know how to sell on Amazon without stock, the answer is simple: sell virtual products! Digital products don't need to be stored because they don't take up any physical space. Or, they only need space on a computer or in the cloud, which is much cheaper than a warehouse.

For some businesses, this won't work the way you want to run your business. But if you have a good idea for an eBook or piece of software, you should think about it. Artists can also sign up for Merch by Amazon, a service that will print their designs on real products.

All you have to do is make a cool design that people want to have on a mug or t-shirt and send it in a digital file. Amazon will keep the items in stock and add your designs to them.

Advantages Of Selling Digital Products On Amazon

  • You don't have to spend much or anything at all to get started.
  • It can be used by anyone, even if they have never done e-commerce before.
  • You might be able to figure out your price and profit margins.

Disadvantages Of Selling Digital Products On Amazon

  • Digital products can be hard to sell in some markets because there are already so many of them.
  • When you first enter the market, it might not be easy to get people to know about you and your business.
  • There is no guarantee that you will sell or do well.
  • Fees with a high commission.

People Also Ask

Can I Sell On Amazon If I Don't Have A Product?

Yes. Using services like FBA, Merch by Amazon, or third-party inventory solutions, you don't need to hold stock to make money on Amazon.

What Is The Minimum Inventory For Amazon?

With Amazon FBA, there is no minimum number of items that must be shipped. Sellers are not punished if they fill any amount of an order that a customer wants. This lets your business grow faster and gives you a competitive edge in the market.

Can You Start Amazon FBA With No Money?

Yes, you don't have to spend money to sell on Amazon. What's going on? In fact, you don't have to spend a dime to start selling on Amazon. Only a product to sell and an Amazon account are needed.

Conclusion

If you know how to sell on Amazon without inventory, you can decide which way to go for your next business. Once you know how the system works, there are a lot of ways to build an Amazon business without inventory. These include using an FBA service or a dropshipping solution.

If you've read this far, you already know everything you need to know about how to sell things on Amazon without inventory. You should use the tips in this post to build a successful business.

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