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how-to-sell-on-Amazon-without-an-inventory

I’ve been with a lot of sellers and eCommerce aspirants. Almost all of them knew about a myth: “Selling on Amazon without an inventory is too difficult”. It is like a dream for most of the sellers. Therefore after reading this article you will feel lucky as we will discuss a total of three methods to do so.

People love selling on Amazon. Isn’t it? 

Let me crush your anxiety and tell you what is gonna happen. I’m saying, “You can sell on Amazon without any inventory”. Oh yeah, you can’t say it’s a miracle. As per my opinion, you can do so in exactly three ways. Let us put our talk aside and proceed further.

Introduction to selling on Amazon without an inventory

Talking generally, selling on Amazon was always easy. Like always, you have to login into seller central, do what the site says, and blah, blah, blah! You might have heard it more than a thousand times.

Selling on Amazon has become fun. 

As per Statista,December 2019 survey of U.S. brands selling on Amazon, 72 percent of responding brands stated that their top motivation to sell on Amazon was to be where consumers are and to access expanded advertising capabilities. Additionally, 71 percent of brands were motivated to sell on Amazon for access to the Amazon Prime member audience. Amazon Prime members are highly engaged online shoppers with higher average online shopping spend than non-Prime members”.

The above analytics says, “Don’t wait for time, just start selling on Amazon”. 

Now let us discuss the ways to sell on Amazon without an inventory.

Three ways to do it: Selling on Amazon without an inventory

As I said, there are precisely three ways of doing it. Let us discuss each of them.

First: Selling on Amazon FBA

Amazon hugely benefits and depends upon the third-party sellers and businesses on its platform. Around 50% of the total sales on Amazon are from third-party sellers. Therefore, most of the success of Amazon comes from these sellers.

It is extremely easy to sell on Amazon FBA (Fulfillment by Amazon). Follow my ultimate guide to selling on Amazon FBA.

Why should I sell on Amazon FBA?

Amazon is the reason why consumers expect fast delivery today. Amazon Prime is a program under the company which provides free one-day or two-day delivery on Prime eligible products.

Super jealous about the fact of fast delivery by Amazon? Well, you can do it too! 

Keeping this reason in mind Amazon launched the FBA i.e. Fulfillment by Amazon program. In this program, Amazon handles the delivery part of the business where you sell on Amazon without an Inventory. Amazon will pick up delivery and provide customer service to your customers.

For this and so many more reasons, the Amazon FBA program is the most efficient and cost-effective method to sell on Amazon. While a nominal amount is paid for this service, at the same time you enjoy excellent customer service which leads to repeat purchases.

How to sell on Amazon FBA (Fulfilment by Amazon)?

There can be various steps to how to start selling on Amazon FBA.

Step1: Register to Amazon Seller Central

The first and most important to selling on Amazon FBA is registering your account on Amazon Seller Central. Click on the link to open the page and follow the instructions to register on Amazon. Below is a snippet of what it looks like.

Amazon-seller-central

There are two types of accounts that are offered by Amazon.

1st. Standard account: It is totally free of cost. Here you can sell a limited number of items per month.

2nd. Professional account: It costs you 39.99 USD per month. Here, there is no limit to the number of items sold on the platform.

Step 2: Listing your items on Amazon

The second most important step is listing your items on Amazon. The Amazon Listing requires the following points to be considered while doing so.

  • Keyword research: Since Amazon is a platform where millions sell and millions more are just customers, there is a large database. This database produces competition. And in order to cope with the competition, you have to add the listing with trending keywords. For this to happen, you need to do keyword research. There are various tools that suggest trending keywords with search volume and cost per click. Some of the tools are given below:
  • SEO Analysis: The SEO analysis of product descriptions should be done as per standards. 
  • Product description: A SEO-oriented product description should be written in order for the product to rank higher in Amazon searches and search engines.
  • Product photography: A controlled and precise photo of the product should be uploaded to avoid copyright claims in the past.
Step 3: How to join the Amazon FBA program.

Below is the snippet which is self-explanatory, explaining how to attach your seller account to Amazon FBA.

Amazon-FBA

After you select FBA, your product will be shipped to the Amazon fulfillment center. And you can sell on Amazon FBA.

Second: Dropshipping on Amazon        

The second option, rather a choice to sell on Amazon without an inventory is dropshipping on Amazon. Dropshipping itself is a module by definition in which there is no physical inventory. Let us discuss something about dropshipping before moving forward.

As per Shopify, It’s obvious an entrepreneur would want to try Amazon dropshipping. In 2019, the company had over 300 million active users and more than $280 billion in sales using Amazon as a sales channel for your business can mean big returns”.

Finding products for dropshipping on Amazon is the most important step while dropshipping on Amazon. Below is a related blog to find a correct view of the topic.

Related: Finding products for Amazon dropshipping

 After you’re done with product research, the only left part is sourcing the product. I have a blog written for the topic and you can read it by clicking the link below.

Related: How to source products to dropship on Amazon

Third: Using third-party logistics

Renting an entire group of people just to handle their own inventory on behalf of your product listing is known by the name third-party logistics. The below stats show the motivation behind the concept.

statistic_id1106142_us-brands-who-want-to-expand-3p-selling-on-the-amazon-marketplace-2019

As per Statista, According to a December 2019 survey of U.S. brands selling on Amazon, 72 percent of responding brands stated that they would like to expand 3P (3rd party) selling on the Amazon marketplace. Brands have several incentives to migrate to 3rd party selling, most importantly increased control over inventory and pricing strategies and more direct influence over their brand perception”.

An example of third-party logistics is United Parcel Service (UPS).

Conclusion: Final thoughts

Selling on Amazon without an inventory might be a tough task to handle, but there are cracks in the process as well. Nothing is impossible, but everything is possible.

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