Last Updated on February 12, 2025 by Himanshu Rawat

Want to start an eCommerce business on Amazon but don’t want to spend a lot on inventory? Try selling without keeping any stock.

Amazon is one of the largest online marketplaces in the world, offering incredible opportunities for entrepreneurs to build successful businesses. But what if you don’t have the capital to invest in inventory it is still possible to sell on Amazon without holding any stock.

Through Four powerful business models, you can sell products on Amazon without needing to invest in inventory upfront. This blog post will guide you on how to sell on Amazon without inventory, step by step.

How to Benefit from Selling on Amazon with No Inventory

Many entrepreneurs have found success selling on Amazon without ever holding inventory such as Angelina and Chris shared that they decided to invest in this side hustle because it involved “no social media, no customer interactions, and no physical products.” It also “doesn’t require a large upfront investment,” and they found that there’s “very little competition” since it’s a lesser-known opportunity. Now, they’re earning approximately $13,491 per month from it, based on the receipts they showed to viewers in the video.

Selling on Amazon without holding inventory offers several compelling advantages in this way:

1. Low Startup Costs:

By not buying inventory upfront, you avoid large financial commitments. Unlike traditional businesses that require significant stock investment, selling without inventory (e.g., dropshipping or Kindle direct publishing means) you only purchase products after a sale. This reduces startup costs and saves on storage, shipping, and warehouse fees, allowing you to invest more in areas like marketing and product development for growth.

2. Reduced Financial Risk

Selling without inventory eliminates the risk of unsold products and excess stock. Unlike traditional retail, where unsold items may need discounts or disposal, a flexible inventory system allows you to purchase products only as needed, reducing financial risk and enabling quick adjustments to market trends.

3. Quick and Flexible Startup

You can quickly list products on platforms like Amazon or your website without worrying about sourcing or storage. This allows you to start small, test different categories, and adjust your strategy based on performance, all without large stock investments, enabling faster sales and growth.

4. Multi-Channel Selling

Selling without inventory allows you to use multiple channels like Amazon, your website, and social media platforms, expanding your reach to a broader customer base. This approach boosts sales potential and reduces the risk of relying on a single revenue source.

5. Global Reach

Selling through platforms like Amazon or dropshipping gives you global reach, allowing access to international markets without geographic limitations. This expands sales opportunities, especially for trending or universally appealing products, and helps discover profitable niches worldwide.

6. Scalability

Inventory-free selling makes scaling easier by eliminating the need for storage, management, or shipping. As demand grows, you can quickly adjust marketing, expand products, or increase orders without inventory limits, enabling rapid growth without major infrastructure costs.

What are the four effective models for selling without holding inventory?

If you’ve already decided on the products you’d like to sell on Amazon but are concerned about inventory management, you’re in luck. There are four effective models for selling on Amazon without holding inventory. These models allow you to run your eCommerce business efficiently without the upfront costs and risks of stocking products. If you’ve already selected what to sell, you can start implementing one of these models right away:

1. Dropshipping on Amazon

Dropshipping on Amazon allows you to list products without holding inventory, minimizing startup costs. When an order is placed, you buy from a third-party supplier and have it shipped directly to the customer. 

Dropshipping is an e-commerce fulfillment method where sellers partner with suppliers to handle product procurement, storage, and shipping directly to customers. This approach allows sellers to offer a wide range of products without maintaining physical inventory. However, it can lead to challenges in managing customer experience, as sellers have less control over product quality and shipping times.

How to Dropship in Amazon?

First, create an Amazon selling account to access tools and dashboards for launching your business. Then, research and select a reliable dropshipping supplier, preferably one with experience working with Amazon. Ensure they have authorization letters from brands or manufacturers. Once you have your supplier, create product listings or match them to existing Amazon listings.

While dropshipping provides several advantages, there are also some challenges for Amazon sellers, including:

2. Print on Demand (POD) with Amazon Merch

Another great way to sell without inventory on Amazon is by using the print-on-demand model, like Amazon Merch on Demand. This service lets designers and sellers create and sell custom apparel, such as t-shirts and sweatshirts, without upfront inventory costs.

Sellers simply upload their designs, choose the product type, and set a price. The items are listed on Amazon with Prime shipping. When a customer orders, Amazon prints the design on the product and ships it directly to them, while the seller earns a commission

How it typically works:

• Apply for Amazon Merch: Submit an application to join the program.
• Create Designs: Develop unique and appealing designs using graphic design tools.
• Upload Designs: Select products and upload your designs to Amazon Merch.
• Set Pricing: Determine your royalty per sale.
• Promote Your Products: Market your designs through social media, blogs, and other channels.

3. Kindle Direct Publishing (KDP)

Amazon Kindle Direct Publishing (KDP) allows writers and content creators to publish their work in both digital and print formats, eliminating the need for traditional inventory and publishing limitations. With KDP, anyone can release an ebook or paperback on Amazon, making it accessible to millions of Kindle readers worldwide.

When you offer a paperback version, Amazon will handle the printing and shipping directly to customers each time you make a sale, all without requiring any upfront inventory investment. You’ll earn royalties every time a digital or physical book is sold.

Getting Started:

• Write Your Book: Create high-quality content in your chosen genre.
• Format Your Manuscript: Ensure your book is properly formatted for Kindle and print.
• Design a Cover: Create an eye-catching cover that meets Amazon’s guidelines.
• Publish on KDP: Upload your manuscript and cover to Amazon KDP.
• Market Your Book: Utilize social media, author websites, and Amazon’s promotional tools to reach readers.

4. Affiliate Marketing with Amazon Associates

The Amazon Associates Program offers a great opportunity to earn money by promoting Amazon products without the need to manage inventory. This affiliate marketing program lets you earn commissions by recommending products and directing traffic to Amazon.

As an Amazon Associate, you receive a commission for every sale made through your referral links. Instead of handling inventory or shipping, you can promote Amazon products on your blog, social media, or other online channels. When someone clicks on your affiliate link and makes a purchase, you earn a percentage of the sale.

Getting Started:

• Join Amazon Associates: Sign up for the program and set up your affiliate account.
• Select Products to Promote: Choose products relevant to your audience.
• Create Content: Develop engaging content that includes your affiliate links.
• Drive Traffic: Use SEO, social media, and other marketing strategies to attract visitors.
• Monitor Performance: Track clicks and earnings through the Amazon Associates dashboard to evaluate your success.
• Optimize and Scale: Continuously refine your content and strategies to increase conversions, and expand your reach by exploring new products and niches.
• Stay Compliant: Follow Amazon’s rules and guidelines to avoid violations that may affect your account status.

7 Essential Tips for Selling Without Inventory

If you’re planning to sell without holding inventory, here are some key tips to keep in mind:

1. Understand Product Restrictions

Amazon has specific rules regarding restricted products and compliance guidelines, even for dropshipping. Make sure you’re aware of these to maintain a good standing with your account.

2. Communicate Transparently with Customers

Being upfront with your customers about potential issues like shipping delays, availability, or any challenges that might affect delivery time is crucial in dropshipping. Clear communication helps set realistic expectations for your customers.

3. Work Closely with Third-Party Suppliers

Collaborate effectively with your suppliers to ensure the quality of products and avoid any potential issues with inventory or shipping that could affect your business.

4. Respond to Customer Feedback

Negative feedback can be tough, but it’s also an opportunity to improve. Address any complaints by listening to your customers, offering solutions, and working to meet their needs to build loyalty.

5. Automate Your Operations

Utilize automation tools to streamline processes like order fulfillment, shipping notifications, and tracking. This reduces the likelihood of customer dissatisfaction and helps you focus on growing your business.

6. Stay Informed on Market Trends

Keep an eye on emerging trends, whether it’s a viral product on social media, a popular phrase, or a hot book genre. Identifying trends early can help you predict demand and align your virtual store with what customers are looking for.

7. Conduct Thorough Product Research

While trends can be helpful, they only provide part of the picture. Use research tools like Product Opportunity Explorer to dive deeper into customer demand, search patterns, and other insights to discover profitable niches.

Conclusion

Selling on Amazon without holding inventory is a viable and profitable option for entrepreneurs looking to minimize startup costs and financial risks. By leveraging models like dropshipping, print-on-demand, Kindle Direct Publishing, and affiliate marketing, you can create a scalable business with a global reach and low operational expenses. With careful planning, transparent communication, and the use of automation tools, you can effectively manage your business and capitalize on trends and profitable niches. By staying informed and continuously optimizing your approach, selling without inventory can lead to long-term success on Amazon.

FAQs on How to sell on Amazon without Inventory

1. What is dropshipping on Amazon?

Dropshipping on Amazon involves listing products from a third-party supplier on Amazon. When a customer makes a purchase, you forward the order to the supplier, who then ships the product directly to the customer. You don’t need to handle the inventory or shipping.

2. How can I sell on Amazon without holding inventory?

You can sell on Amazon without inventory by using methods like dropshipping, print-on-demand (POD), Kindle Direct Publishing (KDP), and affiliate marketing. These models allow you to offer products without managing physical stock.

3. Can I promote products on Amazon without inventory through affiliate marketing?

Yes, through the Amazon Associates program, you can promote Amazon products by sharing affiliate links on your website, social media, or blog. You earn a commission on each sale made through your referral link without managing inventory or shipping.

4. Can I sell in the Amazon store without using Amazon storage?

Yes, it’s possible to sell on Amazon without using their storage services. If you prefer not to keep inventory, you can opt for dropshipping or use programs like Kindle Direct Publishing and Merch on Demand. If you do have inventory, you can manage your own storage and fulfillment through Fulfilled by Merchant (FBM). This approach allows you to choose shipping methods that suit your needs while maintaining the health of your seller account and ensuring timely delivery.

5. Can I buy and resell items in the Amazon store?

Yes, you can buy and resell items in the Amazon store. You can start reselling by choosing an Individual or Professional selling plan and creating an account. From there, you can start sourcing products and match existing product listings.