Last Updated on March 10, 2025 by Himanshu Rawat
Amazon is one of the largest online marketplaces, offering amazing opportunities for entrepreneurs to build successful businesses. But what if you don’t have the capital to invest in inventory? The good news is, you can still sell on Amazon without holding any stock. Learn how to start your business with little upfront cost using simple methods that let you sell without inventory. Let’s show you how!
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4 Effective Models to Start Selling on Amazon Without Inventory
Learn how to sell on Amazon without holding inventory using four effective models, allowing you to start your eCommerce business with no upfront costs or risks.
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.
It offers a wide product range but may affect customer experience due to limited control over product quality and shipping times.
How to Dropship in Amazon?
- Create an Amazon selling account to access tools and dashboards.
- Research and select a reliable dropshipping supplier, preferably with Amazon experience.
- Ensure the supplier has authorization letters from brands or manufacturers.
- 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.
What are the benefits of selling on Amazon with No Inventory
Entrepreneurs Angelina and Chris found success selling on Amazon without holding inventory. They chose this side hustle because it requires no social media, no customer interaction, and no physical products, with low upfront costs and minimal competition. They now earn about $13,491 per month, as shown in their video receipts.
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
No inventory means no risk of unsold stock. You only purchase as needed, minimizing financial risk and adapting quickly to market trends.
3. Quick and Flexible Startup
Easily list products online without sourcing or storage concerns, enabling fast testing and strategy adjustments without large investments.
4. Multi-Channel Selling
Sell across platforms like Amazon, your website, and social media to reach more customers and diversify revenue sources.
5. Global Reach
Access international markets via platforms like Amazon, expanding sales opportunities and discovering profitable global niches.
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.
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
- Familiarize yourself with Amazon’s restricted product list.
- Ensure compliance with both Amazon policies and local laws.
- Regularly check for updates to stay compliant.
2. Communicate Transparently with Customers
- Set clear expectations on shipping times and product availability.
- Be honest about delays or issues.
- Use automated tracking and notifications for updates.
3. Work Closely with Third-Party Suppliers
- Build strong relationships with reliable suppliers.
- Regularly check product quality and availability.
- Align inventory and shipping processes to avoid issues.
4. Respond to Customer Feedback
- Treat negative feedback as a chance to improve.
- Encourage and acknowledge positive reviews.
- Address customer concerns quickly and professionally.
5. Automate Your Operations
- Use tools for order processing, shipping, and customer communication.
- Focus on scaling your business with automation.
- Automate follow-ups and updates to maintain consistency.
6. Stay Informed on Market Trends
- Monitor social media, Google Trends, and influencers for emerging products.
- Capitalize on seasonal and viral trends early.
- Use trend analysis to stay ahead of demand shifts.
7. Conduct Thorough Product Research
- Use tools like Product Opportunity Explorer to analyze demand and competition.
- Test products on a small scale before full launch.
- Focus on customer needs to align product offerings with demand.
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.
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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.