4 Ways to Sell on Amazon Without Holding Inventory

Selling without inventory is a business model that eliminates the need for storing any products or managing logistics. This approach provides sellers with greater flexibility, allowing them to focus on marketing and developing efficient sales strategies. This model is particularly beneficial for beginners, and can be achieved through various methods, each with its own unique characteristics.

In this article, we'll explore four methods for how to sell on Amazon without inventory.

One of the most effective ways to generate income on Amazon is through Amazon FBA (Fulfillment by Amazon). With the FBA program, you can buy and sell products without the hassle of handling storage, order fulfillment, or logistics, as Amazon manages all of these tasks on your behalf.

Here’s how the process works:

1. Find a product you want to sell.
2. Locate a supplier and place an order.
3. Your supplier ships the products to Amazon FBA centers.
4. When an order is placed by a customer, Amazon prepares and ships it to them directly.
5. You earn profits without handling any products physically.

In addition to eliminating the hassles of logistics and inventory management, Amazon FBA also offers numerous benefits, including:

While Amazon FBA presents promising opportunities for substantial profits without the need for inventory management, consider the following factors:

Starting an Amazon FBA business typically involves higher upfront costs compared to other methods. To ensure success, it's important to focus on identifying profitable products. This allows you to trust that your expenses will be recouped and you can avoid unnecessary storage fees for unsold inventory.

High-demand products often generate significant income, due to their high sales volume and reduced advertising costs, since they already have an established audience. To help you identify these types of products, it's essential to evaluate factors such as sales volume, profit margins, seasonality, and more.

However, this analysis can be challenging since the necessary data isn't always readily available to the general public. Fortunately, U.S.-based sellers can benefit from Sellerhook, a service that specializes in detailed product research using the latest and most accurate data. This allows you to easily find the most lucrative product ideas for your FBA business.

To use this service, just follow these steps:

This service enables you to obtain ideal product ideas effortlessly and save your time. By getting accurate and detailed research conducted by specialists, you increase your chances of profitability and success on Amazon significantly.

Through Amazon’s ‘Merch on Demand’ option, you can sell products on Amazon without buying any inventory. This method is ideal for creative individuals, and doesn't require any specific type of training or a license. Your artwork will appear on a variety of products like hoodies, phone cases, and other items making them unique.

Here's how it works:

However, keep in mind that your profits might be modest with this model, since you only earn a royalty from each sale. To maximize your earnings, it’s important to conduct market analysis to help you identify what kinds of products and designs have the highest demand, and make your marketing efforts stand out from the competition.

Dropshipping is a business model where you import products from a supplier to your Amazon store using a supplier app or integration. When a customer makes a purchase in your store, you pay the supplier for both the product and shipping. The supplier then packs and ships the order directly to the customer, who is usually unaware that you are not the product owner.

This model offers several benefits:

However, suppliers often require a subscription to access their product import features, typically starting around $30/month. It’s also crucial to secure a reliable supplier who offers fast and dependable delivery and adheres to Amazon's dropshipping guidelines, such as not using branded packaging.

On average, new dropshippers can earn at least $1,000/month, making this method appealing to those looking to start their own business with a smaller investment. Just keep in mind that you'll have less control over the process since most tasks are handled by the supplier.

Another cost-effective and convenient way to make money on Amazon without the need for physical inventory is by selling digital products. You can offer all kinds of digital stuff such as ebooks, apps, images, music, and more.

Here are different ways to source these kinds of products:

While digital products are convenient to sell repeatedly without inventory, they might yield lower profits than physical products, due to lower pricing. You'll also need to invest in advertising to help you stand out in the market.

While selling intangible items can generate some income, selling physical products without handling them directly can be more profitable. When choosing your method, it's important to consider which option best suits your preferences, budget, and skills.