Impatient to step into the world of amazon ecommerce business but don’t want the annoyance of managing inventory? Here’s a Good news! Get yourself ready because this step by step guide will show you how to sell on Amazon without inventory, offering a result-oriented approach to kick start your online business.
Introduction
Amazon is increasingly selling products without inventory, enabling business owners to launch online retail without handling inventory or shipping. Suppliers manage inventory and logistics, partnering with merchants to ship items directly to customers.
Learn how to make a full-time or passive income without having your own inventory by using this beginner’s guide to sell on amazon without inventory.
Let’s Deep Dive In How to Sell on Amazon Without Inventory
Fulfillment By Amazon (FBA)
FBA is a popular Amazon strategy for selling goods by sending them directly to Amazon warehouses, where Amazon handles logistics, storage, and delivery confirmations.
How To Get Started With FBA
FBA is easy to start with minimal training and preparation, requiring actions like the following.
- Create a seller account on Amazon and learn about fees and monthly prices.
- Create an FBA account, create product listings, and describe inventory for delivery to an Amazon warehouse.
- Follow Amazon’s packing guidelines and evaluate costs and options for FBA delivery.
- Review current Amazon routing and shipping requirements for specific procedures.
FBA Charges
- Amazon charges FBA members various fees, including standard seller fees, fulfillment fees, inventory storage fees, and international shipping.
- Standard seller fees range from 15% to 18% of the product price, with hidden costs like refunds.
- Fulfillment fees include picking, packing, shipping, handling, customer service, and returns.
- Inventory storage fees vary by product size tier and are in addition to monthly storage fees.
- Amazon also offers Global Export for global inventory shipping.
FBA’s Benefits
The benefits of FBA include numerous advantages when selling on amazon without inventory. It includes reduced costs, improved customer service, and increased efficiency.
- The capability of sending goods straight to Amazon without requiring warehouse space
- Using the reputation of Amazon to increase the visibility of your items
- 24/7 client service straight from Amazon
- Possibility of using one of the biggest worldwide fulfillment networks
- A complete fulfillment and shipping system that gives you more time to concentrate on other business aspects.
- Even if you are new to ecommerce selling in any capacity, flexible options that let you operate at your own pace.
Customer Fulfilment: Trust in Inventory-Free Amazon Selling
Before going through FBA’s drawbacks, one thing is more important than ever. Customer satisfaction in your journey of how to sell on Amazon without inventory is the most important aspect of it. Discover tips for providing excellent customer service and fostering trust, even when you don’t handle the physical products.
FBA’s Drawbacks
Using FBA also has some drawbacks, such as:
- Commissions and referral payments for selling specific things
- You must manually keep track of the things in stock because there are no notifications when the inventory is low.
- Depending on the products you are storing in relation to your selling rate and profit margin, storage costs may mount up.
- Lack of control over price and fees, as these depend on relevant markets in most cases.
Using FBA Might Be A Good Idea
- To Sell on amazon without inventory can compact and light items to reduce your FBA and storage costs.
- Operate your company from your house, which lacks any inventory storage space.
- Lack of time or resources to package and transport orders.
- Want your goods to be eligible for Prime shipping.
- Would like Amazon to handle returns and customer service.
Using FBA Might Not Be A Good Idea
- Sell highly hefty or huge items
- Want to be in charge of how your products are delivered to customers.
- Possess a storage and fulfillment facility in your own warehouse.
- Want to handle returns yourself.
- Employ a third-party fulfillment company.
- Despite managing your own fulfillment, you are a Seller-Fulfilled Prime member.
Interesting Fact
"Amazon disclosed that over half of 2018, purchases were made by independent sellers using its FBA service."
Taking Up Dropshipping: A Game-Changer in Selling on Amazon Without Inventory
Now, you might be wondering how to sell on Amazon without inventory using dropshipping? Unlock the challenges & benefits of this model, and learn how to grasp dropshipping to create a victorious and supportive e-commerce progress.
Dropshipping
Dropshipping is a business model where sellers order products from third-party suppliers, reducing inventory risk and initial investment costs.
However, careful management is crucial, ensuring reputable suppliers deliver high-quality products on schedule and tracking stock levels to avoid out-of-stock items.
How Does It Work?
Following is a typical drop-ship workflow:
- The dropshipper lists products from a supplier’s catalog on their online store or marketplace.
- Customers place orders, and the retailer collects order details and payment information.
- The dropshipper forwards the order to the supplier, who packs and ships the product using the dropshipper’s branding or neutral packaging.
- The customer receives the product unaware that it was shipped on their behalf.
Why Should We Choose Dropshipping?
Dropshipping frees retailers from inventory and logistics costs, reducing up-front costs and requiring no warehouses or fulfillment facilities. This enables an online store launch without risk, allowing focus on branding, marketing, and customer support.
Reading Suggestion: How to Dropship on Amazon Without Money
What Are The Challenges?
Dropshipping challenges include reduced control over shipping procedures, product quality, and lower profit margins due to higher costs and competition in popular areas.
Is Dropshipping The Best Option?
Evaluate dropshipping’s suitability for your company by considering various variables, including objectives, situations, and factors.
- Dropshipping is a cost-effective, flexible business model with lower upfront investment and less inventory management compared to traditional retail models.
- It allows for flexible scalability and expansion without physical constraints.
- Building strong supplier relationships, considering profit margins, conducting competitive landscape research, and controlling customer service is crucial for success.
Interesting Fact
"Alibaba was a B2B platform that connected Chinese producers with foreign purchasers when it was established by Jack Ma in 1999. The company, which first used dropshipping, shows the potential and scalability of this approach while highlighting corporate growth and diversification."
Using Amazon to Market Digital Goods
Selling your own digital goods is another option to generate income not knowing how to sell on amazon with inventory. Digital products include audiobooks, eBooks, and print-on-demand items sold on Amazon.
Positive Aspects of Selling Digital Goods
- Being able to decide on your own price and profit margins.
- Minimal to no starting expenses or financial commitments.
- Accessible to everybody, including those with little or no prior knowledge of ecommerce.
Negative Aspects of Selling Digital Goods
- Sales or success are not guaranteed.
- Costly commissions.
- High levels of market saturation and competition.
- When first entering the market, it is challenging to achieve visibility and reach.
Difference Between FBA & Dropshipping
Dropshipping and Fulfillment by Amazon (FBA) are distinct online store operations, with comparisons in various aspects.
FBA
Dropshipping
Amazon manages fulfillment, shipping, customer service, and logistics efficiently.
Dropshipping involves suppliers shipping products directly to customers, requiring sellers to address issues.
FBA enables vendors to store, ship, and manage inventory in Amazon’s warehouses.
Dropshipping reduces inventory management by allowing suppliers to store and ship products.
FBA restricts sellers’ control over shipping and packaging, limiting customization options.
Dropshipping enables greater control, customization, and collaboration with suppliers.
FBA costs upfront in shipping, and storage fees, and carries the financial risk of unsellable inventory.
Dropshipping offers lower upfront costs and reduced risk by avoiding inventory purchases in advance.
FBA provides scalability for sellers, leveraging Amazon’s infrastructure.
Dropshipping offers flexibility and expansion but may face limitations in supplier capabilities.
FBA fees affect profit margins; Amazon’s platform and Prime benefits drive sales.
Dropshipping may impact profit margins due to higher costs and market competition.
Final Takeaway
Well, now equipped with the mastery of how to sell on Amazon without inventory, it is optimistic time for you to start an entrepreneurial journey. Because Amazon offers potential for business growth without investing large sums of money or stock. The Mikkelsen Twins have profited from selling independently published books and audiobooks without stock. Here’s to your success in the exciting realm of inventory-free selling on Amazon. Start small and learn as you go!