Amazon provides numerous methods for entering their marketplace without needing to store inventory of your own. Each strategy offers advantages and disadvantages.
Research the market, take note of competition and profit margins, and select a business model which best meets your needs. Read on to learn more on how to sell on Amazon without inventory.
FBA
No need to fret; there are many solutions available to you that can help expand your Amazon business without making massive inventory investments. Delegating fulfillment responsibilities through FBA, FBM or dropshipping frees up time and resources that you can put toward marketing your brand and expanding sales.
An essential factor when selling on Amazon is adhering to their rules and guidelines for sellers. Avoiding policy violations will keep your account from being suspended or closed down entirely.
Selecting reliable suppliers that can supply you with what you need at prices that compete with online retailers is also critical for running a successful business.
Consumers prefer brands that offer quality, speedy shipping and exceptional customer experiences. Building genuine connections with customers beyond product and price drives loyalty and distinguishes you from faceless competitors.
Dropshipping
Dropshipping offers an effective solution for eCommerce businesses without holding inventory, by curating and selling products from other sellers on Amazon while using a supplier to store actual inventory and fulfill customer orders.
As this model allows for purchasing and paying for inventory only when orders come in, third-party fulfillment centers may also help ensure timely deliveries with high service standards. This model makes meeting shipping deadlines and meeting customer service expectations simpler and less time consuming.
The main downside of using Amazon Marketplace as your retail model is building brand recognition can be difficult; customers will see your supplier’s logo instead.
Furthermore, managing inventory carefully is essential as violating Amazon seller policies could see thousands of accounts suspended annually for violation requiring deep knowledge of Amazon policies as well as strong communication abilities to work effectively with them when necessary.
Vendor Programs
If you want to sell physical goods on Amazon without investing in inventory, consider the Amazon Vendor Central program. This option enables businesses to supply products that will ultimately be distributed through Amazon fulfillment centers; relieving storage issues but necessitating strict adherence with Amazon guidelines.
Following these standards includes meeting shipment deadlines, avoiding backorders and reducing shortage claims. If a company does not adhere to them, they could incur vendor chargeback fees and lose access to the program.
Amazon Vendor Central sellers must have high-quality products and an established track record with them to qualify. Furthermore, detailed product information and wholesale pricing must also be submitted. Amazon reviews all of this data to make sure it adheres to their guidelines.
Other Options
No matter your business’s goals, Amazon Fulfillment Network, managing inventory yourself or using dropshipping are all viable options to suit any of your business needs. Each method comes with its own set of advantages and disadvantages – each can help you enter the ecommerce marketplace without investing upfront in physical products.
Retail arbitrage is another popular approach to selling on Amazon without investing any inventory upfront. By capitalizing on price discrepancies between different retailers and Amazon, retail arbitrage allows you to make significant profits by purchasing goods elsewhere and then selling them back at a higher cost on Amazon.
eBay and Letgo are effective alternatives to Amazon for selling larger, difficult to ship items. Both sites also provide multiple payment methods; however, their fees may be more costly than Amazon’s and processing returns may take longer; additionally, some may require you to register your legal name and address with them.
