In the past, you could become an Amazon seller only if you partnered with the company and shipped your products directly to its warehouses. That's no longer the case, and you can sell products through this famous and reputable eCommerce provider, both physical and digital, without having stocks at Amazon fulfillment centers.
Now you’re probably wondering how to sell on Amazon without inventory and what the most affordable or worthwhile option is. Read on to learn everything you need about the offered options and the pros and cons of each.
There are four common ways for prospective Amazon sellers to start selling their products through the Amazon store, and these are:
These options cater to different types of sellers, so let's review them in more detail.
FBA is the best way to sell on Amazon without inventory for many sellers. If you are considering becoming an FBA seller, all you need to do to start your online business is prepare a product and ship it to the nearest Amazon fulfillment center. Amazon picks up from there, as it takes care of storing, packaging, and shipping your products to their buyers.
Owing to these benefits, many people become FBA sellers. Furthermore, you benefit from the following if you choose this selling method:
However, to make money on Amazon without inventory in this manner, you must accept the following drawbacks:
Although many sellers find FBA fees high, they still stick to this option because of the following features:
So, if you’re unsure how to sell on Amazon without inventory and keep eCommerce sales simple, this is the way to go.
If you find that Amazon charges overly high fees for its warehouse space, there are several types of 3PL providers that could help you maximize profits. So, if there aren't any Amazon no-product platforms that work for your goods, you can also use third-party logistics.
This option allows you to sell products online via Amazon and eliminates the need for your own warehouse space. However, note that this eCommerce selling option is worthwhile only if you can find a third-party provider that's more affordable than Amazon, which may be challenging.
To benefit from the potentially lower costs of third-party logistics, search for a 3PL provider that offers packing, shipping, and customer support services from their third-party fulfillment center.
Before deciding to sell on Amazon without inventory through third-party providers, you should take the following pros and cons into consideration:
Another thing to keep in mind before choosing a third-party provider over the FBA program is that you might encounter potential issues with shipping.
If you sell on Amazon without inventory and they cause damage to your goods, for example, they'll take the blame and compensate you. On the other hand, if a third-party provider causes such damage, getting reimbursed may prove challenging.
Dropshipping by Amazon is another popular option for retail sellers who don't want to purchase inventory. It involves creating an Amazon storefront, also known as a product listing and a product detail page. Every time a buyer orders an item, you buy it from the manufacturer, who then sends it to the customer.
If you choose the dropshipping method to sell on Amazon without storing a product, you only need to promote and sell the items. Your dropshipper will be responsible for filling the order and keeping track of the inventory.
If you choose Amazon dropship, you can take advantage of the following benefits:
Even though these pros sound great, it’s advisable to learn about the downsides before choosing dropshipping to sell on Amazon without holding inventory.
There are also some cons that pertain to dropshipping:
Selling on Amazon without inventory in this manner is subject to the company’s dropshipping policy. Some principal rules you'll have to follow by choosing this option are:
Knowing how to sell on Amazon without inventory will also come in handy if you wish to sell intellectual property online, as these processes are quite similar. Besides selling digital products, such as music, ebooks, and digital art, you can sell t-shirts and other print-on-demand (POD) products this way.
To sell digital products like ebooks and audiobooks on Amazon, all you need to do is upload them. But if print-on-demand products are your trade, you must search for a third-party POD service to register. After that, you can synchronize the service with your Amazon seller account and promote the product among your customer base.
Aside from individual strengths relating to the chosen method, let's take a look at some general pros of selling products without inventory on Amazon:
You can start, grow, and improve your eCommerce business by learning how to sell on Amazon without inventory. There is an array of options depending on the type of goods you offer, and you can always switch methods if one doesn't suit your business style. The best thing is that Amazon is among top-rated wholesale websites and a synonym for online shopping.
Now that you know how to sell products on Amazon without inventory, choose your preferred method and begin selling. But first, read the Amazon policy carefully to avoid potential penalties down the line.
Yes, you can sell via Amazon without stocking a product at Amazon's warehouse. 3PL and dropshipping are two ways you can sell physical goods without having to manage inventory at all.
Prospective traders exploring how to sell on Amazon without inventory have several convenient options for selling physical items at their disposal. Those are dropshipping, 3PL, and Amazon FBA business. To sell intellectual property, you can try Digital Products.
Yes, you can because many traders resell products from other people and manufacturers on Amazon all the time.
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