The Ultimate Guide to Selling on Amazon Without Inventory (2023)

Ready to secure your future and build your way up to financial independence?

Selling on Amazon is one of the best ways to achieve all of that. In fact, did you know that 3/4 of sellers on Amazon are still profitable in 2022?

(despite massive disruptions due to the pandemic and supply chain issues.)

and the best thing about it…

The market is growing, and soon, Amazon will account for nearly $2 in $5 spent online. Now is the best time to catch this golden opportunity and start selling.

In this post, you’ll learn how to sell on Amazon without inventory (completely risk-free.)

Can I sell on Amazon if I don't have a product? 

You definitely can!

In some cases, it's even more beneficial than selling with an inventory. Here are some of the best benefits of selling without an inventory:

• Sell quickly and inexpensively - no need to purchase any products upfront
• Freedom to sell products you want - no worrying about how much items you have left
• Test different markets - find out what works before investing any money
• Focus on marketing - spend more time promoting and skyrocket your sales.

In addition to that, 30% of Amazon sellers reported over $10,000 in lost sales due to supply chain issues. Fortunately, selling without an inventory means that you don't have to worry about any of those issues.

It's a win-win scenario for every Amazon seller.

How Can I Make Money with No Inventory?

There are many ways to make money without having your own product. We've compiled some of the most reliable ones.

They have brought thousands for Amazon sellers and are guaranteed to work.

Here are some of the most profitable and popular options:

#1: Selling Digital Products

Overview:

Digital products are a super-easy way to start selling on Amazon without inventory.

You can create ebooks, kindle, digital art, music albums, and more. The best thing about it is that your inventory is practically unlimited.

(and you can ship any digital product to your customers instantly.)

Pros:

Selling digital products on Amazon has many benefits. Here are some of the best reasons to go with this option:

• Low start-up cost - you don’t need to purchase any products upfront.
• Easy to create - digital products are easy to create, market and sell.
• No shipping - since digital products are online, you can "ship" them instantly.

Cons:

Everything has its negatives...

And that's the case with digital products too. Some of the things that can make you rethink going with digital products include:

• Not the most profitable option - digital products can bring in decent income, but it won't be as high as with physical products.
• Low margins - there's a big competition which leads to margin compression.
• Digital product piracy - you need to protect your products to avoid piracy.

Who Is it For:

If you are a beginner and want to start selling on Amazon without the hassle of dealing with inventory, selling digital products is a great way to go.

If you’re not sure how to create them, there are third-party services that help you.

#2: Amazon FBA

Overview:

Amazon FBA stands for Fulfillment by Amazon and it allows you to have your products fulfilled and shipped by Amazon.

That way, you don't need to worry about any of the shipping headaches.

(or having an inventory of your own.)

Pros:

There are plenty of benefits that come with using Amazon FBA. Here are some of the sweetest ones to consider:

• Quick shipping - Amazon will take care of shipping, so it's quick and easy.
• No inventory headaches - Amazon takes care of your inventory, no need to worry about how many items you have left.
• Increased visibility - orders fulfilled by Amazon sell better and look more credible.

Cons:

Of course, there are some downsides that come with Amazon FBA too. Here are the biggest ones to consider:

• High fees - Amazon FBA comes with high fees and can eat away profits.
• Complicated setup - setting up an Amazon FBA is a very tedious process.
• No control - you got no say in how products shipped to Amazon are handled 

Who Is It For:

Amazon FBA is best for sellers who already have an established business and can afford to spend more money on fees. If you are a beginner, then Amazon FBA might be too complicated for you at the moment.

However, it can definitely be something to look into as your business grows.

#3: Dropshipping

Overview:

Dropshipping is all about finding a supplier who already has their products ready to be shipped and list them on Amazon. When a customer makes a purchase, you purchase the item from the supplier. 

Then you’ll have it shipped to the customer for a higher price.

Pros:

Dropshipping comes with a ton of great advantages that you simply can't overlook. Here are some of the key ones to consider:

• Low setup cost - no need to invest in products upfront, so it's cheap to start.
• Wide selection - you gain access to different products that can be difficult to get a hold of in retail stores.
• Easier to grow your business - suppliers do the hard work behind the scenes instead of you

Cons:

Just like with anything else, dropshipping has its fair share of cons too. Here are some of the biggest ones to consider before taking the plunge:

• Lack of control - you rely on the supplier to handle all aspects of shipping. If they mess up, it can be difficult to fix.
• Low margins - there's high competition which leads to margin compression.
• Fraud risk - there are fraud risks when dealing with suppliers, so it's important to be vigilant and protect yourself.

Who Is It For:

Dropshipping is a great way for new sellers to get started on Amazon without any investment upfront. It requires minimal startup costs, so it's perfect for those just starting out.

But, if you're looking to make big profits, this way might not be for you.

The margins are often low and there's a lot of competition in the dropshipping space. It can be done but you'll need to have an in-depth understanding of how the market works.

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#4: FBM + Third-Party Logistics

Overview:

This method combines Fulfillment By Merchant (FBM) with a third-party logistics provider, such as Shipwire or Rakuten Super Logistics.

With this, you can send products to customers without using Amazon warehouses.

Pros:

The biggest benefits of combining the Fulfillment By Merchant (FBM) with a third-party logistics provider includes:

• Deeper levels of customization - customize your orders with a special packaging or a custom note to stand out
• Multiple shipping options - most 3PLs will let you choose between multiple shipping carriers and options unlike Amazon FBA
• Brand-building freedom - you can build your site, do your own marketing, deeply monitor and communicate with your audience, and more

Cons:

As with every option on the list, this approach has its shortcomings. The most common things to take into considerations are:

• Slower shipping speeds - 3PLs, especially those limited in their fulfillment locations, may not be able as fast. 
• Complex setup - getting set up with a third-party logistics provider can be tricky and will require technical knowledge.
• Less flexible with sales fluctuations - smaller 3PLs are limited in storage, personnel, and technology. If you have a massive holiday spike, they might not have the means to support you. 

Who Is It For:

This strategy is perfect for sellers who don't want to invest in inventory upfront but still want to offer their customers a wide variety of products.

It’s great if you care about building your brand and customization too.

However, it can be expensive when it comes to shipping costs, so it's important to factor that in when calculating profits.

Ready to Sell on Amazon Without Inventory?

These are the four best ways to sell on Amazon without having any inventory. 

Each of the ways on the list has its benefits and drawbacks, which are important to look into before choosing the best option for you.

No matter how you decide to start selling on Amazon, be sure to do your research on how the platform works. With enough hard work and dedication, you can make a steady income selling without any inventory!

Take this golden opportunity now and grow your income with a rising market.

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