Are you interested in selling on Amazon but don’t have the funds to invest in inventory? Not to worry, there are ways to sell on Amazon without ever touching a single product. This beginner’s guide will show you how to start with Amazon’s Fulfillment by Amazon (FBA) program, drop shipping, and other selling methods without inventory.
Amazon is one of the largest online marketplaces in the world, with over 2.5 million active sellers. However, many people are intimidated by the idea of selling on Amazon, particularly regarding the inventory aspect of the business. Fortunately, there are ways to sell on Amazon without touching a single product. In this article, we’ll explore some of the methods for selling on Amazon without inventory.
2. Understanding the Basics of Selling on Amazon
Before we dive into the methods for selling on Amazon without inventory, it’s essential to understand the basics. Amazon offers two main selling plans: Individual and Professional. The Individual plan is free but comes with a $0.99 per-item fee in addition to referral fees, while the Professional plan costs $39.99 per month and comes with lower referral fees.
Sellers can choose to fulfill orders themselves or use Amazon’s FBA program, which allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle shipping and customer service. Additionally, Amazon offers various advertising options to help sellers promote their effects on the platform.
3. The Benefits of Selling on Amazon Without Inventory
There are many benefits to selling on Amazon without inventory, including the following:
- Lower upfront costs: With methods like FBA, dropshipping, and print-on-demand, sellers don’t need to invest in stock upfront, which can be a significant barrier to entry for many people.
- Lower risk: Selling without inventory also reduces the risk of being stuck with unsold products, as you only order products when you receive an order from a customer.
- More time to focus on other aspects of the business: By outsourcing inventory management to a third party, sellers can spend more time on tasks like marketing, customer service, and product development.
4. Method 1: Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) is Amazon’s program that allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle shipping and customer service. This is a popular option for sellers who want to sell on Amazon without inventory, allowing them to list their products on Amazon and have Amazon handle the rest.
4.1 Setting Up an FBA Account
To start with FBA, you must set up an Amazon seller account and enroll in the FBA program. Once registered, you’ll need to create product listings for your products and ship them to Amazon’s fulfillment centers.
4.2 Listing Your Products
To list your products on Amazon, you must create a product listing that includes the product name, description, images, and other details. You can do this through Amazon’s Seller Central dashboard.
4.3 Shipping Your Products to Amazon
Once you’ve created your product listings, you must ship your products to Amazon’s fulfillment centers. Amazon will provide shipping labels and instructions on preparing and shipping your products.
4.4 Reaping the Benefits of FBA
Once your products are in Amazon’s fulfillment centers, Amazon will handle all aspects of shipping and customer service. This includes picking, packing, and shipping your products to customers and handling returns and customer inquiries.
5. Method 2: Dropshipping
Dropshipping is another popular method for selling on Amazon without inventory. With drop shipping, you list products on Amazon that you don’t have in stock. When a customer orders one of these products, you purchase the product from a third-party supplier and have them ship it directly to the customer.
5.1 What is Dropshipping?
Dropshipping is a business model where you act as the middleman between the customer and the supplier. You list products on your website or marketplace like Amazon, and when a customer orders one of these products, you purchase it from a third-party supplier who ships it directly to the customer.
5.2 Setting Up a Dropshipping Business on Amazon
To start dropshipping on Amazon, you must create an Amazon seller account and list products for sale. You’ll also need to find a reliable drop shipper to work with.
5.3 Finding a Reliable Dropshipper
When looking for a drop shipper, it’s essential to find one that is reliable and has a good reputation. You should also look for a drop shipper that offers competitive pricing and fast shipping times.
5.4 Managing Your Orders
Once you have your listings up and running, you’ll need to manage your orders and ensure that your drop shipper is fulfilling orders promptly. You’ll also need to handle any customer service inquiries that come in.
6. Method 3: Print-on-Demand
Print-on-demand is another method for selling on Amazon without inventory. With print-on-demand, you create designs or products printed on demand when a customer orders them.
6.1 What is Print-on-Demand?
Print-on-demand is a business model where you create designs or products printed on demand when a customer orders them. This allows you to sell products without investing in inventory upfront.
6.2 Setting Up a Print-on-Demand Business on Amazon
To start with print-on-demand on Amazon, you must create product listings for your designs or products. You’ll also need to find a reliable print-on-demand supplier to work with.
6.3 Finding a Reliable Print-on-Demand Supplier
When looking for a print-on-demand supplier, you’ll need to find one that offers high-quality products and prints, competitive pricing, and fast turnaround times. Some popular print-on-demand suppliers for Amazon sellers include Printful, Teelaunch, and Merch by Amazon.
6.4 Creating Your Designs or Products
Once you’ve found a print-on-demand supplier to work with, you’ll need to create your designs or products. This can be done using graphic design software or outsourcing the design work to a freelancer or agency.
6.5 Uploading Your Designs or Products to Amazon
Once your designs or products are created, upload them to Amazon’s marketplace. You can do this through Amazon’s Seller Central dashboard.
6.6 Reaping the Benefits of Print-on-Demand
Once your products are live on Amazon, customers can order them, and your print-on-demand supplier will handle the printing and shipping. This allows you to sell products without investing in inventory upfront and without having to take shipping and fulfillment yourself.
Selling on Amazon without inventory is a great way to get started with eCommerce without investing in many upfront costs. Whether you choose to use FBA, dropshipping, or print-on-demand, there are plenty of options for sellers who want to start small and grow their business over time.
Using these methods, you can leverage Amazon’s massive customer base and its robust e-commerce platform to sell your products and grow your business. So if you want to start selling on Amazon without inventory, consider trying one of these methods and see how it works.
- Is it possible to sell on Amazon without inventory?
Yes, selling on Amazon without inventory using FBA, dropshipping, or print-on-demand methods is possible.
- Is it cheaper to sell on Amazon without inventory?
Yes, selling on Amazon without inventory can be cheaper since you don’t have to invest in stock upfront or pay storage fees.
- Are there any downsides to selling on Amazon without inventory?
One potential downside is that you have less control over the shipping and fulfillment process. Additionally, if you’re using dropshipping, you may face issues with product quality or shipping times if your supplier is unreliable.
- Can you make a full-time income selling on Amazon without inventory?
Yes, making a full-time income selling on Amazon without inventory is possible. However, it will depend on factors such as the products you’re selling, your pricing strategy, and your marketing efforts.
- What are the best products to sell on Amazon without inventory?
The best products to sell on Amazon without inventory depend on your niche and target market. Some popular options include clothing and accessories, home decor, and customized products.
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