Did you know that over 50% of Amazon's sales are through third-party sellers? Most sellers do not hold stock for the item they are selling. Instead, they apply ways like drop shippers, FBA, Merch by Amazon, or even Amazon affiliate marketing. Selling on Amazon without stock is one of the most effective strategies for beginning a business with minimal capital investment.
This guide will show you how to get started using these methods and find the right approach for you.

Understanding the Business Models for Selling on Amazon Without Inventory

Selling without inventory is just another way of stating that you are not holding products in stock. Rather, storage, packaging, and shipping are handled by suppliers or partners to the business, and not directly met by the desires of the businesses. The most commonly used models are dropshipping, FBA, print on demand using Merch by Amazon, as well as, the affiliate program.
Each has its benefits, so let’s break them down.

Method 1: Amazon Dropshipping

What is Dropshipping on Amazon?

With dropshipping you are creating the seller listing on Amazon, but the supplier stocks and fulfills the orders. The inventory is not something you manage yourself. This means low initial investment since one only pays the supplier after making a sale of the product in question.

Step-by-step Guide to Setting Up Dropshipping on Amazon

1. Find Reliable Suppliers: When selecting suppliers, make sure you find those who supply quality products and also take a short time to deliver. To find the suppliers, you can use the likes of AliExpress or Oberlo.
2. List Products on Amazon: The next step is to introduce the supplier’s products to the Amazon store you use. Some important factors to consider while submitting your site to a search engine or an online business directory include good-quality photos, well-written descriptions, and reasonable prices.
3. .Manage Orders: In return, each time a customer makes an order with your Amazon store, you place an order with your supplier. The supplier will deliver the same to the customer.

Pros and Cons of Dropshipping on Amazon

Pros:

• Low startup costs
• No need to handle inventory or shipping

Cons:

• Dependence on suppliers for product quality and delivery speed
• Lower profit margins due to supplier fees

Tips for Success

• Product Research: Look for items with high demand but low competition.
• Customer Service: Respond quickly to customer questions and handle issues fast.

Method 2: Fulfilment by Amazon (FBA) with No Inventory

How Does FBA Work Without Inventory?

Fulfilment by Amazon, FBA means when a business uses this service, the company uses Amazon’s facilities to store and deliver products. But you may be thinking, you must have inventory for retailing, goods that are not required to be parked in your shop yet you can do this with wholesalers or suppliers.

How to Source Products for FBA Without Manufacturing

• Use Wholesalers: Buy products in bulk from wholesalers and send them directly to Amazon’s fulfilment centres.
• Private Labelling: Choose generic products and add your brand to them. You don’t need to make these products; your supplier handles that.

Setting Up Your Amazon FBA Account

1. Create Your FBA Account: Sign up as a seller on Amazon and choose FBA as your fulfilment option.
2. Send Inventory to Amazon: Arrange with your supplier to ship the products directly to Amazon's warehouse.

Benefits and Drawbacks of Using FBA Without Inventory

Pros:

• Amazon handles storage, shipping, and customer service.
• Your products become eligible for Amazon Prime.

Cons:

• Storage and fulfillment fees can add up.
• High competition in many product categories

Pro Tips

• Optimize Listings: Use clear keywords in your product titles and descriptions to improve visibility.

Method 3: Merch by Amazon (Print-on-Demand)

What is Merch by Amazon?

Merch by Amazon is a POD where you design a t-shirt or a hoodie, for instance, and others fulfill it on your behalf. These are items that are printed, packed, and shipped when they are sold by customers on Amazon.

Getting Started with Merch by Amazon

1. Sign Up: Apply to join Merch by Amazon. Approval may take some time.
2. Design Your Products: Use design tools like Canva or Adobe Spark to create eye-catching graphics. Upload them to your Merch account.

Design Tips and Tools

• Focus on Trends: Create designs that match current trends or popular topics.
• Keep It Simple: Clear and simple designs often sell best.

Pros and Cons of Merch by Amazon

Pros:

• No upfront costs for inventory or production
• Passive income potential

Cons:

• Tough competition with many designers
• The approval process for new designs can be strict
• Success Tips for Merch by Amazon Sellers
• Promote your products on social media to reach more customers.

Method 4: Amazon Affiliate Marketing

What is Amazon Affiliate Marketing?

Amazon’s associates program allows you to make money from sales on Amazon. You don’t have to ever buy or even own them.

How to Sign Up for Amazon Associates

1. Create an Account: Sign up for the Amazon Associates program.
2. Choose Products to Promote: Pick products that fit your niche or target audience.

Promoting Products on Amazon Without Inventory

• Create Content: Write blogs, make YouTube videos, or post on social media that includes your affiliate links.
• Drive Traffic: Share your content on multiple platforms to attract more clicks and sales.

Earning Commission from Sales

• Amazon pays a percentage of each sale that comes from your links.
• Higher-priced items can earn you more money, even with a small commission.

Pros and Cons of Amazon Affiliate Marketing

Pros:

• Easy to get started with no upfront costs
• No need to handle shipping or customer service

Cons:

• comparatively low commission rates to other affiliate schemes
• Short cookie duration, meaning you only earn if the buyer purchases quickly

How to Select the Most Effective Method for the Business

• Choosing the right model depends on your goals and budget:
• Dropshipping: Best if you want a low-risk and easy setup.
• FBA: Good for scalability and hands-off shipping.
• Merch by Amazon: Ideal for creative people who enjoy designing.
• Affiliate Marketing: Perfect if you prefer content creation over product handling.

Common Mistakes to Avoid When Selling on Amazon Without Inventory

1. Poor Product Research: Selling items without knowing their demand or competition level.
2. ignoring Amazon Guidelines: Not following rules can get your account suspended.
3. No Marketing Plan: Just listing products is not enough; you need to promote them.

Tools and Resources for Selling on Amazon Without Inventory

• Dropshipping Tools: Oberlo, AliExpress
• Design Tools for Merch: Canva, Adobe Spark
• Affiliate Tools: Link shorteners like Bitly, traffic analytics

Conclusion

Selling on Amazon without stock is one of the best ways to start an Amazon-based business with no capital at all. Every business method such as drop ship, FBA, Merch by Amazon, and Affiliate marketing has its own advantages. Of course, the idea is to choose the strategy that aligns with your strengths and objectives. Check out the new updates in Amazon trend and strategies to increase your success.