How to Start Selling On Amazon Without Inventory
Jo Larsen
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Entrepreneurs are interested in how to sell on Amazon without inventory because it eliminates the risk and cost and it can be highly profitable. In 2020, third-party sellers on Amazon made nearly $3.5 billion in one day, otherwise known as Amazon Prime Day.

Outside of this, third-party sellers make up the majority of online sales for Amazon. You could be one of those third-party sellers. 

Benefits of Selling on Amazon Without Inventory

There are a lot of benefits to selling on Amazon without inventory or selling on Amazon in general. One of the biggest advantages is that you don’t have to worry about stocking, shipping, or managing inventory.

You also won’t need to spend money upfront on purchasing stock, as you can simply work with a supplier and let them handle the fulfillment process.

Popular Terms to Learn before you start Selling on Amazon

What is Amazon FBA?

Amazon FBA stands for Fulfillment by Amazon, and it’s a service offered by the e-commerce giant that allows third-party sellers to store their items in Amazon fulfillment centers. This means that when customers buy an item from your store, Amazon FBA will take care of shipping and handling.

Pros and Cons of Selling Products Using Amazon FBA

Pros:

• Amazon FBA provides a range of services, from order fulfillment to customer service. This means that you don’t have to worry about managing operations or hiring workers to do it for you.

• You have access to Amazon’s millions of customers with just a few clicks. This can significantly increase your sales.

• Amazon FBA provides you with easy access to global markets, allowing you to reach customers in different countries without having to manage international shipping and customs yourself.

Cons:

• You have limited control over customer service and order fulfillment, as much of it is handled by Amazon.

• The fees associated with using Amazon FBA can be significant, including storage fees and referral fees.

• Amazon FBA can be complicated to set up and manage, requiring you to invest both time and money in order to get it right.

Overall, Amazon FBA is a great way for businesses of all sizes to start selling products online without having to worry about the logistics of running their own ecommerce store. With the right strategy and a little bit of effort, you can use Amazon FBA to significantly increase your sales. 

How Dropshipping works selling on Amazon
How Dropshipping works selling on Amazon

What is Dropshipping?

Dropshipping is a process in which a third-party supplier will stock, package, and ship products to customers on behalf of the seller. This means that you don’t have to worry about managing inventory or fulfilling orders yourself.

With dropshipping, the supplier does all of this for you. You just have to focus on marketing your products and driving sales.

What is Private Labeling?

Private labeling is when sellers create their own brand or product label and source their goods from a third-party supplier. This allows them to differentiate their product and build a strong brand identity in the market.

What is Inventory Management?

Inventory management is the process of tracking and managing the inventory of a business. It includes monitoring stock levels, ordering new products when needed, and making sure that customers are receiving the right items in a timely manner.

How Do I Start the Process to Sell on Amazon without Inventory or Knowledge?

Now that you have learned the basics of the Amazon business, here’s how you can start the process to sell on Amazon without any inventory.

Here are 5 Steps to How to Sell on Amazon Without Inventory

Getting started on Amazon might seem daunting at first. But here, you’ll find five steps you can use to get started on this profitable platform. 

1. Choose a business model

There are five popular business models most Amazon sellers choose from. They vary based on your budget. Here’s a quick overview:

  • Online arbitrage is when you seek out good deals online (liquidation sales), buy them, and resell them at a markup. 
  • Retail arbitrage is when you seek out good deals at physical retail stores, buy them, and resell them at a profit.  
  • Dropshipping products is when you resell goods provided by another brand, handling no shipping and storage. 
  • Wholesale is when you resell goods provided by well-known brands at a wholesale discount.
  • Private label selling is when you seek manufacturers to make products and add your own brand label to those products. 

The selling strategy that requires the least investment is dropshipping. This is because dropshipping suppliers take their earnings from your sales.

Online and retail arbitrage requires slightly more investment, but you can start with $50. However, you’ll have to invest time in finding great sales. 

Wholesale and private label sales require the most money investment. You need to buy products in bulk quantities or pay a manufacturer to get things done. But typically, you can spend as little as $500. 

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2. Find a niche and a product

Once you decide how to sell, you can find products based on that sales technique. These are broken down into different niches, or product categories, like kitchenware or toys. 

You can start by looking into niches you are personally passionate about. Selling something is much easier when you are excited about providing it. 

When picking products within those niches, here are some tips to consider:

  • Pick trending products from research on Google Trends and social media sites.
  • Choose lightweight products that are cheap to ship and won’t cut into your profits. 
  • Be aware of products Amazon requires approval to sell (like collectibles or jewelry).
  • Consider selling products that aren’t easy to break.
  • Look at products that people use regularly with high customer demand

For more tips on how to find a niche that’s right for you, read here

3. Find suppliers

The suppliers you find depend on your business model. Here are some considerations based on your chosen model:

Dropshipping suppliers are those specifically geared for dropshipping. Sites like Worldwide Brands and CJDropshipping can connect you with good people. Unlike Amazon FBA, there are no storage fees or referral fees associated with dropshipping — so it can be a great way to start selling online without having to pay any upfront costs. You can read more about Amazon’s dropshipping policy here.

Online arbitrage sellers can find suppliers anywhere there’s an online sale. Websites like Alibaba and similar online marketplaces can help. 

Retail arbitrage sellers can find suppliers wherever there’s a nearby seller. Pick up local sales fliers and visit nearby department stores for opportunities. 

Wholesalers decide on suppliers based on their products. Use Google and websites like WholesaleCentral for a few options. 

Private label sellers rely on manufacturers to find good results. Alibaba and ThomasNet are two of the most trusted options and reliable suppliers. 

Regardless of the supplier you choose, always look up their online reputation before contacting them. Many of the websites linked above provide user reviews on different suppliers. 

Whenever you can, don’t be afraid to negotiate prices when finding suppliers. The price you see could be better. So you can offer to order larger quantities or request discounts based on your research. Talking to multiple sources will help you find the best deal. 

4. Register on Amazon

To sign up for Amazon, you can go to the Seller Central storefront. Signing up for selling on Amazon is similar to a regular Amazon account. 

You don’t need a business to sell on Amazon. Instead, you can fill it out with personal information if you prefer. You’ll need to confirm your identity and ability to receive payments.

Here’s what you should have ready before making an account and to begin selling:

  • A current photo ID 
  • A copy of your latest bank statement 
  • A physical address where you can receive mail (Amazon will send you a postcard)
  • A working microphone and camera for a video interview 

The registration process takes up to 15 minutes. However, you’ll need to wait for the postcard to confirm your physical address, meaning you won’t be able to sell for at least a week. 

5. Create a product listing

Creating a product listing is only necessary if a current listing doesn’t exist. Any business model might have to do it, so it’s a good skill to remember.

If you are in wholesale, arbitrage, or dropshipping, search for your product using its UPC (universal product code) or serial number. You should find this on the side of your product’s packaging.

If it exists, connect your account with that listing and let Amazon know how much inventory you have. You’ll do this directly through Amazon Seller Central.

You’ll need to create a listing if you are a private label product or your product isn’t listed. Here are some quick tips you can use to do that:

  • Have high-quality product images available, including a primary image with a white background 
  • Have a combination of different images that show the product in use, technical data, and other photos that encourage sales 
  • Perform keyword research using Amazon’s built-in PPC platform or through third-party tools (like AMZScout)
  • Use those keywords to describe your product based on what people are searching for.
  • Focus on keywords that describe your product in the most detail (otherwise known as long-tail keywords)
  • Use the bullet points to describe all of the amazing features your product provides and how those connect to benefits for the user
  • Use the later description for further explanation of your product, including more high-quality images and infographics 

You can take inspiration from current listings and competitors to see how others get sales. Don’t steal their content outright, but ask yourself how to improve it.

Consider avoiding inspiration from well-known brands, as big brands sell purely on those brands. Instead, use the Movers & Shakers list to see how lesser-known brands get popular. 

Start Selling On Amazon in 5 Steps
Start Selling On Amazon in 5 Steps

Once you have your Amazon store you can start to sell products and market your Amazon business.  There are many tools available to get your store off the ground and help it stand out from competitors.

Take advantage of Amazon’s advertising options like Sponsored Products, which can connect potential customers with your products in search results or on product detail pages.  You can also use Amazon Advertising campaigns to advertise across multiple channels such as Google, Binge, and other popular platforms.

Finally when setting up your Amazon store make sure to keep a professional attitude in mind by including branding elements like logos, high-quality images, and videos that showcase your brand’s offerings. 

What About Selling Digital Products?

You can sell digital products on Amazon –  If you want to know how to sell on Amazon without inventory, here’s an obvious way: sell virtual  or digital products.

Digital products don’t take up physical space, so they don’t require any storage. Or, they only require computer or cloud storage, which is a lot cheaper than warehouse space.

The downside  is that digital products can be copied, so make sure you have appropriate security measures in place. 

Finally, it’s important to remember that selling on Amazon isn’t a passive income stream – it takes strategy and hard work to create campaigns with high conversion rates. With the right strategy and content, however, your Amazon store could be wildly successful!

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What are the Benefits of Selling on Amazon?

Selling on Amazon has many advantages, including:

Access to a huge customer base – With over 310 million active customers worldwide, you can easily reach potential customers with your product.

Low setup costs – Amazon’s self-service platform is easy to use and requires no upfront costs to get started, no need to purchase inventory, no warehouse storage required.

Increased visibility – An Amazon listing puts your product in front of millions of potential customers all over the world.

Automated Fulfillment with Amazon FBA – Amazon FBA can handle fulfillment for you, taking the hassle out of managing inventory and shipping orders.

Fast Payment Processing – Amazon’s payment system is secure and fast, ensuring that you get paid quickly for your sales.

Customer Support – Amazon provides customer service support to help make sure customers have the best shopping experience possible.

Low Risk – As an Amazon seller, you don’t have to worry about the risks associated with selling on other platforms.

Increased Profits – Sellers can take advantage of Amazon’s built-in marketing campaigns and targeted advertising to maximize profits from their listings.

Data Analytics – By taking advantage of Amazon’s data analytics tools, sellers can better understand their customers and optimize their listings for increased sales.

Scalability – With Amazon, you can scale up quickly and easily to meet the demands of your growing business. Whether you’re a small online seller or a large enterprise, Amazon has the resources to help your business succeed.

These are just some of the many benefits available to sellers who choose to use Amazon as their platform for selling products. By leveraging the power of Amazon, you can take your business to the next level and make more money than ever before.

Conclusion

Amazon can be a fantastic path to potential earnings. It lets you focus on income-earning activities, including finding new products, talking with manufacturers, and helping connect those to your future customers.  It also offers the scalability to grow your business, making it an ideal platform for entrepreneurs. 

Amazon FBA  also makes it easy to store and ship products, saving you time and money. With its low startup costs and easy maintenance, Amazon is a great option for those looking to start or expand their online business 

Using these five steps, you’ll have a great start to your successful Amazon online business. 

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