How to Earn on Amazon Without Inventory

Updated on : June 19, 2023
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How to Sell on Amazon Without Inventory: Learn All The Steps

Amazon is not to be available only for people who have joined the company or have sent their merchandise direct into Amazon warehouses. Actually, learning the best ways to market through Amazon in a non-stock environment is among the most sought-after trends for those looking to shift to eCommerce sales, even if they have very little or no experience in sales online.

Learning how to sell your products on Amazon with no inventory can simplify the creation of the products and launch procedures so that you can begin earning money in the shortest time possible. Utilizing this beginner's guide to sell your products on Amazon and discover ways to earn an income that is passive or full-time without the need to store your own goods.

Fulfilment through Amazon (FBA)

The most well-known way to sell items on Amazon is through Fulfillment by Amazon, commonly referred to as FBA. FBA allows users to sell items by shipping directly through Amazon warehouses. After the goods have arrived, Amazon takes care of everything else, from storage in warehouses and organizing them to logistics for shipping and delivery confirmations.

Pros and Cons of FBA

Utilizing FBA provides many advantages but also drawbacks. Some of the most well-known benefits of using Fulfillment by Amazon are:

  • The ability to ship products directly to Amazon and eliminate the requirement for warehouse space.
  • Enhancing brand awareness for your items by using Amazon's prestigious brand
  • 24/7 support for customers directly from Amazon.
  • Gain access to the most extensive global fulfilment networks.
  • A complete fulfilment and shipping solution allows you to concentrate on other aspects of your business.
  • Flexible solutions that allow you to operate at your own pace even if you're not experienced in selling on the internet in any capacity.

There are many benefits for FBA, but there are also some disadvantages to FBA, such as:

  • Commission and referral fees for the sale of individual items
  • The inability to receive notifications when inventory is low will require you to keep track of the items in inventory.
  • Storage charges can get expensive according to the items you store vs. the rate you sell them and the profit margin.
  • There is no control of fees and pricing because they are usually dependent on markets that are relevant to them.

How to Get Started With FBA

Getting started with FBA is easy and doesn't require any lengthy instruction or training. For the first step, you'll be required to follow these steps

  1. Set up an Amazon seller's profile. From here, you'll be able to find out more about selling your products on Amazon and the various fees and monthly costs you could have to pay based on the platform you choose to make use of.
  2. You can set up your FBA account through Amazon's Seller Account Portal.
  3. List your products and specify the kind of FBA inventory you plan to ship directly into the Amazon warehouse.
  4. Prepare your items by following Amazon's guidelines for packing. Review Amazon FBA's delivery rates and alternatives. Also, you can look over your most current Amazon route and requirements for shipping to determine the steps you have to take based on your product and your current location.

Dropship on Amazon

 Dropshipping is a different method of selling online products without having to manage inventory. It has been in use for a long time, even before Amazon was created.

 Dropshipping on Amazon is the process of marketing and selling items that you don't keep or manage yourself. Through selling products through dropshipping, it is usually solely responsible for advertising and selling the product. The dropshipping service you choose will assist you in fulfilling your order and managing the inventory they're responsible for all the time.

Pros and Cons of Dropshipping

Dropshipping can provide a variety of advantages which makes it a desirable business model, such as:

  • Cost-effective and low-cost starting using a dropshipping service to sell products is one of the cheapest eCommerce options available to start selling items with profits.
  • Test faster products: Testing the efficacy of products by this method is significantly faster than making your own products and buying too much stock.
  • Get valuable insights: Discover more about the internet customers you serve and the demographics you're trying to reach through selling various dropshipping items as you collect data and analysis in real time.

Dropshipping has its own disadvantages on Amazon, which might be:

  • Lack of flexibility: You won't have any flexibility in how you develop your products as you're limited to a different manufacturer's product.
  • It's a hit-or-miss situation. The dropshipping site's products are not guaranteed to work or please customers.
  • Competitive: The industry of dropshipping is awash with competition.

Starting with dropshipping is a process that requires the ability to choose the right market, investigate your current competitors, and then locate an online dropshipping service that will be reliable and rely on.

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Third-Party Logistics (3PL)

If you can't locate an Amazon No-Product platform suitable for you, or if you're seeking alternatives, look into the services of a third-party logistics (3PL) business.

A 3PL is an organization or service which provides eCommerce professionals support in managing inventory. Instead of using Amazon or dropshipping services to store inventory, the 3PL solution is all-inclusive third-party Warehouse storage and shipping solution.

Here's what a 3PL service is:

  • Warehouse storage and inventory management
  • Receiving, collecting and inspecting
  • Pick & Pack services
  • LTL, FTL shipping solutions
  • Reverse logistics

The benefits of 3PL

  • Management freedom is increased
  • Make time to concentrate on other aspects of your business
  • Scalable

Pros and cons of the use of 3PL solutions:

  • Insufficient control over physical inventory
  • A lack of flexibility concerning the distribution of the product
  • Inability to ensure quality control constantly
  • It could be costly, to begin with.

To begin using a 3PL solution, you must first study the market you're hoping to reach and reliable third-party logistics firms within your region. Consider the volume of revenue you plan to generate and the kind of shipping and features offered prior to selecting your preferred 3PL solution.

Sell Digital Products on Amazon

Another way to earn money from Amazon without inventory is by selling your own digital items.

What exactly are Digital Products?

Digital products could range from audiobooks that can be downloaded to digital copies of books and print-on-demand items like selling t-shirts through Amazon or prints of artwork.

Benefits of Selling Digital Products

  • There are no or few charges for investment and/or startup costs.
  • It is accessible to everyone, including those with little or no eCommerce experience.
  • Ability to determine your prices and profit margins

Pros and Cons of Selling Digital Products

  • Highly competitive and saturated in specific markets
  • A challenge to establish the attention and reach of the market when you are first getting into the market
  • No guarantee of sales or performance
  • High commission fees

Selling digital items on Amazon is feasible as a traditional seller when you plan to sell audiobooks, books, or documents. If you wish to sell print-on-demand products like t-shirts or coffee mugs, you must sign up for third-party POD services. It is then possible to link your POD service to the account you have on Amazon account to market your print-on-demand items.

The Wrapping Up

Learning the best ways to market on Amazon with no inventory or through an integrated Amazon platform will aid you in deciding what route is best for your next business venture. From using the FBA service to utilizing dropshipping, There are endless possibilities to create an impressive six-figure Amazon business with no inventory when you're comfortable with the process.

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