A Step-by-Step Guide to Selling on Amazon Without Inventory

While selling on Amazon is a great way to launch your own business, many newcomers prefer to avoid the complexities of inventory management. Luckily, this marketplace lets you sell products without inventory, making it easier to focus on growing your business. But in order to succeed, you need a well-thought-out strategy.

In this article, we’ll share a guide for beginners on how to start selling on Amazon without any inventory.

Amazon provides numerous opportunities for sellers with its easy-to-use platform and vast customer base, requiring no technical expertise. While this site is traditionally known for selling physical products, it also offers much more. Read on to find out how you can start your online store without holding any inventory:

Amazon offers several ways to sell stuff without having to keep stock of any physical products. Each model brings its own advantages and challenges. Here’s a breakdown of the most popular methods:

FBA lets you sell products without having to manage your own shipping or other tasks. With this model, you buy products and have them sent directly to Amazon’s fulfillment centers. When a customer places an order, Amazon takes care of storage, packing, and delivery for you.

Why choose FBA?

Keep in mind that FBA requires sellers to buy products upfront, so it does involve a higher investment than other methods on this list. Choosing trending, high-margin items is essential in order for this model to be profitable.

If you're creative and want to sell designs without handling any inventory, PoD is a great option. All you have to do is upload your artwork, choose a product (like shirts or phone cases), and Amazon prints and ships the item featuring your design each time someone places an order.

The key benefits of PoD:

While PoD offers an opportunity for passive income, the profit margins tend to be smaller because you earn a royalty per sale. To maximize your earnings with this method, it’s important to research trending designs and promote your work.

With dropshipping, you list products on Amazon and order them from a supplier, only when a customer makes a purchase. The supplier packs and ships the item directly to the buyer, without FBA centers or upfront inventory costs.

Why dropshipping works:

Keep in mind with this method that you have less control over packaging and delivery speed, which can impact customer satisfaction and the revenue you can make as a result.

Another fantastic option for making money without dealing with physical inventory is selling digital products. You can sell eBooks, music, and more on Amazon.

Why sell digital products?

While digital products require no FBA fees or warehousing, they often have lower price points than physical items. In order to stand out, it can be helpful to invest in advertising and SEO to drive traffic to your listings.

To boost your chances of success on Amazon, picking the right product is crucial. No matter which selling model you choose—FBA, dropshipping, Print on Demand, or selling digital products—you need to select a product that sells well and generates profits.

By conducting thorough product research, you can ensure that you select products that have strong sales potential and keep up with market shifts and emerging bestsellers.

Here are key points to focus on when choosing a product:

To conduct effective product research, it’s helpful to use analytical tools. This will enable you to access accurate data and save time on research. Below we’ll provide an overview of the top available tools you can use.

There are many beneficial tools designed for Amazon sellers. We’ve highlighted four options that offer the best balance of price and quality. Each solution has its own strengths and limitations. Let’s dive into the details:

The right tool for you depends on your business model, budget, and specific needs. Many of these platforms offer free trials, so you can take advantage of them to find the one that works best for you. By leveraging data-driven insights, you can confidently select profitable products and build a sustainable Amazon business.

If you sell print-on-demand or digital products like audiobooks, sourcing isn’t a concern. However, for Amazon FBA or dropshipping, finding a reliable supplier is crucial to running a smooth business and maximizing your profits.

Key factors to consider when choosing a supplier:

Many sellers turn to AliExpress, as this site allows both dropshipping and single-product purchases. However, product quality varies, so it’s also important to review customer feedback.

Consider working with multiple suppliers instead of relying on just one. This way, you’ll reduce risks and make money on Amazon more efficiently.

Regardless of which selling model you choose, you’ll need to create a seller account before you can start selling on Amazon. The process is simple and involves three main steps:

Once the verification process is complete, your account will be active, and you can start listing products for sale in your store.

The process of listing your product can vary depending on whether you’re selling an existing product or launching a new one.

If you decide to dropship or resell with Amazon FBA, in most cases you can simply join an existing product listing. However, if you’re selling Print on Demand items or digital products, you’ll need to create a new listing. While the process differs depending on your product type (eBooks, clothing, etc.), there are a few key, universal components of a successful listing:

In addition to writing engaging text, you also need to optimize your listing for search engines. This means finding the best keywords that will help customers find your product.

Once you compile the most effective keywords, you’ll need to incorporate them seamlessly into your listing. This strategy enhances your product’s visibility, increases traffic to your store, and ultimately helps to boost sales.

With so many products available on Amazon, standing out can be a challenge. To avoid getting lost in the crowd, it's crucial to promote your products and increase their visibility. Here are some strategies to help you drive traffic and boost sales:

These strategies are effective for any Amazon seller, regardless of the selling model you use, to help you stand out and sell things on Amazon more efficiently.

By following these steps, you'll be ready to begin your ecommerce journey. Remember that each method of selling items comes with its own unique characteristics, so you'll need to adapt accordingly.

Selling on Amazon without having inventory is an excellent way to start an online business with minimal investment and risk. Regardless of the method you choose, success is within reach if you implement the right strategy and use the right tools. By continuously tracking your progress and refining your approach, you’ll uncover what works best for your business and make improvements along the way.