What are the ways to sell on Amazon without inventory?

Is Dropshipping the Best Way to Start Selling on Amazon Without Inventory

Are you looking for a way to start selling on Amazon without the burden of inventory? Dropshipping might be the perfect solution for you.

This popular business model allows you to list products without holding any stock, making it ideal for those seeking low startup costs.

Here’s how it works: when a customer places an order on your Amazon store, you purchase the product from a third-party supplier or manufacturer who then ships it directly to the customer. Essentially, you’re selling a product without buying it upfront—you only pay for it when you make a sale.

Intrigued by the simplicity? There are important details to consider. Amazon’s policies for dropshipping require you to be the seller of record, ensuring customers don’t receive packing slips, invoices, or external identifiers from third parties. Also, avoid dropshipping from other retailers like Walmart, as this can immediately terminate your seller account. 

Do you have a reliable supplier with fast shipping speeds

This is vital since Amazon customers expect quick delivery, often within 1 to 2 days. A supplier who understands and adheres to Amazon’s dropshipping rules can help you meet these expectations.

Dropshipping on Amazon involves three main parties: you, the customer, and the supplier.

Here’s a simple flow: you set up a store on Amazon, the customer places an order, you then order the product from the supplier, provide the supplier with the customer’s shipping details, and the supplier ships the product. Your profit comes from the difference between what the customer pays and what you pay the supplier.

Why is dropshipping so popular?

It offers the advantage of avoiding shipping and storing products, allowing you to sell via multiple channels and even internationally, focusing primarily on customer service. With low capital investment, it can be a gateway to earning passive income.

However, there are challenges. You’ll have less control over product quality and the supply chain, face lower profit margins, and deal with high competition. Managing customer inquiries effectively can make or break your business.

Is Print-on-Demand the Right Strategy for Selling on Amazon?

Another effective way to sell on Amazon without inventory is through the print-on-demand model, specifically using Amazon Merch on Demand. This service lets you create and sell custom-designed apparel, such as t-shirts and sweatshirts, without buying inventory upfront.

How does it work?

Sellers upload their designs, choose the product type, and set the price. Your shirts are then listed on Amazon with Prime shipping. When a customer orders an item, Amazon prints the design on the product and ships it, earning you a commission on each sale. Sounds exciting, right?

Merch on Demand can be an excellent opportunity to earn extra income. Even if you’re not a designer, you can hire affordable designers from platforms like Fiverr.com to create designs for you.

Merch by Amazon offers several benefits:

• No capital investment.
• Access to Amazon’s customer base.
• The Prime badge on your products.

However, some downsides exist, such as limited product variety and occasional gatekeeping through invitation requests.

With our Automated Negative Keyword Management tool, you can overcome these challenges by automating the process of identifying and transforming unprofitable or irrelevant search terms into negative keywords within your Amazon PPC campaigns.