Selling on Amazon without any Inventory

Selling on Amazon is a huge deal especially when you also need storage where your products can be stored. Thankfully you do not need to manage warehouses or large inventories – just like traditional selling methods. It is much easier way to sell on Amazon without ever needing any inventory yourself. 

In this blog post, we will review different ways you can sell on Amazon without inventory or at least with very limited direct investment and how to get started. You will also get ideas on which products to select, listing optimizing and how you can promote your amazon Automated store. 

Selling on Amazon without Inventory Options 

Before we jump to the topic of how to sell on Amazon without inventory. Well, it does not really mean you do nothing with products! These methods enable you to outsource the sales without holding any stock initially: 

1. Dropshipping 

Some products have the option of being sold directly without keeping inventory in stock by using Amazon Dropshipping Software. You then list those items for sale, and if a customer makes an order on that product the supplier ships it directly to them. It has low upfront investment and minimizes the risk of unsold stock. 

How Dropshipping Works: 

• Supplier: Find a supplier for delivering the goods to your customers 
• Amazon: List selected products to sell on Amazon, setting a price for sale that covers the supplier cost, and adds profit margin (plus any sales tax you collect). 
• Order Fulfillment: Order the item and deliver to your customer’s address. The seller simply ships the product to the customer 
• Customer Service: Address customer service and deal with any problems such as returns, shipping complications. 

Advantages of Dropshipping: 

• Affordable Entry Costs: Very low overhead, zero upfront inventory costs. 
• You are free: You can keep a variety of products and items without overstocking. 
• Scalability – Add as many products as you want and never think about storage space. 

Considerations: 

• Reliable Supplier: Your business reputation is based on the reliability of suppliers. Decreases in a brand’s customer service at their promotional stand can result from either delays or impairments with the quality. 
• Margins: Margins in dropshipping can be thin, so it is important you consider your pricing and cost structure closely. 
• Dropshipping in Compliance with Amazon Rules — Follow the drop shipping policies set by Amazon to keep your account safe. 

2. Fulfillment by Amazon at amazon FBA 

The advantage of Amazon FBA is that you can get your products in storage, both packing and shipping takes care from Amazon. You ship your products to an Amazon fulfillment center, and they take care of the rest (including customer service & returns). 

How Amazon FBA Works: 

• Fulfillment by Amazon — Ship your products to an Amazon fulfillment center 
• Amazon Lists Your Products (Products will be listed on Amazon with a Prime badge targeting all prime members) 
• Direct Fulfillment through Amazon: Direct from Manufacturer to Amazon, who takes care of enterprise such as pick pack and ship and returns professional service management 
• Inventory Management: Track stock levels, manage listings and more using your seller account. 

Advantages of Amazon FBA: 

• Prime Eligible: Items that are sold from FBA locations meet the eligibility criteria for Amazon Prime, resulting in potentially increased sales. 
• Scale your Business: Use Amazon’s logistics network to scale up. 
• Ensures Customer Trust:  Customers trust more in products fulfilled by Amazon. 

Considerations: 

• Fees: Considers FBA fees to be a part of his prices! 
• Inventory management: Prevent long-term storage fees and stock outs. 
• Which Products to Source: Select products that are well-suited for FBA 

3. Print on Demand (POD):  

Print on Demand is a way to sell Amazon custom products without stocking inventory. Products like books, as well as t-shirts and mugs only being produced after a customer has made its purchase. 

How Print on Demand Works: 

• Browse Designs: Custom design or content development. 
• Find a POD Service: Choose POD providers that compatible with Amazon 
• List Products on Amazon: List product as an order is placed. PO mentioned to the POD Service. 
• Production & Fulfillment: The POD service does the printing (or creating) and ships directly to customers. 
• Customer Service: Processing returns and customer inquiries. 

Benefits of Print on Demand: 

• Lower Risk: You do not need to purchase inventory upfront which reduces risk. 
• Unlimited Designs: Keep offering design after a successful campaign without leftovers in stock. 
• Customization: Products must be heavily customized for niche markets. 

Considerations:

Low Profit Margins: This usually happens when you have higher per-item costs. 

• Quality Control – This can be an issue, ensuring that you are providing quality on every product sold. 
• Branding: Not great for brand building than traditional ways.  

4. Online Arbitrage

Online Arbitrage Online arbitrage is the activity of purchasing goods on an eCommerce site to sell them late, against a higher price point generally. For instance, this model exploits price gaps on different platforms to earn income. 

How Online Arbitrage Works: 

• Research Products: Find out how to find profitable products using the tools and techniques. 
• Place Items: Order items via internet retailers considering the time and cost of shipping 
• How to Sell on Amazon: Product Listing FBA or Self-Fulfillment 
• Fulfill Ship Orders: To Amazon Fulfillment Centers, or directly to consumer based on method
• Online Arbitraging Benefits 
• Flexible: Work from anywhere having internet access 
• Scalability: You can create entire businesses simply by scaling-offering more products. 
• Low Entry Barrier: Begin with a modest initial investment. 

Considerations: 

• The catch: Needs time to research products 
• Competition: Competition is stiff margins are thin. 
• Suspension Risk: Follow Amazon’s rules to avoid any suspension issues. 

Key Strategies for Success

1. Market Research

Examine the market for trends and pricing strategies. Find consumer demand Amazon Best Sellers List, Google Trends and social media.

2. Optimize Your Listings

Follow with using Amazon SEO best practices, great images and long product description will all give you the benefits. 

3. Use Amazon Marketing Assets

Leverage Amazon Advertising options & Deal programs to increase visibility and sales.

4. Use DFY Diversify Circles Tools

By using this article writing service, DFY Diversify will teach you about compliance with Amazon policies and make the daily work organized while Automating Dropshipping software as well as Extension. The success is improved by automated stock management, repricing, and order placement via this integration. 

Executing on these changes allows a seller to profit in the increasingly competitive Amazon marketplace without bulk purchasing inventory.