Sell products on Amazon without inventory, how? Most people never knew they can run a successful e-commerce business without the need for an inventory. In this article I will be revealing ways to sell items without carrying inventory.
Ways to Sell Product On Amazon without inventory
- Drop shipping
- Amazon FBA
Sell On Amazon without inventory Using Dropship method
This method is best for Starters and individual with drop shipping experience. And also it’s cost to start is low. Here when you list an item for sale and then order, the shipping vendor ships it for you, it is then you can be charged for the product.
However this method have a low profit margins that leaves small amount after it have passed through Amazon via seller fee. Moreover drop-shipping has its own Pros and cons, you will get the detail below. With Drop-ship, you might likely encounter item quality issue, inventory shortages and late shipping.
How does drop shipping work on Amazon without inventory
On this platform, the buyer finds your site online and then seeing the item they want, makes an order. Thus you receive payment from the buyer and then place an order with your distributor at an accepted wholesale price. However the distributor sends the product to the end buyer using you company trademark or logo. So it appears as if the item is coming directly from you.
Pros for Dropship
- You don’t ship items yourself
- No need for an inventory
- It has a low start cost . Because you don’t need to be charged any inventory
Cons
- It have a Super low margins for order between 10 to 30%
- You are required to connect to the distributor database
- Their will be pricing pressure because most stores will be selling same item
- You have limit to the advertising option, this happens due to the low margin
- It is difficult to manage customers service because you don’t have control over it’s realization.
- To have traffic on your website strictly depends on you.
- Late shipping might occur
Sell Product On Amazon without inventory via Amazon FBA
Amazon FBA, what exactly does it stand for and how does it work ? FBA means Fulfillment By Amazon. It is one of the ways you can sell products on amazon without inventory. However what you need to know concerning this method is that you ship your goods or products to Amazon warehouse, then you make a list of your items in Amazon Marketplace. A customer places an order on Amazon website. Thus Amazon takes charge of storage, Fulfillment and also your customer support service. Moreover if you choose to use this platform, you have to ensure you obey Amazon rules and you will be charged for it.
Pros
- Amazon takes care of sales, shipping, returns and customer support. You see, no much work for you
- You can make large sale on this platform because it’s known as the largest online Marketplace.
Cons
- Amazon takes some percentage, depending on the product
- You need a high margin because of the share Amazon have to take from your sales
- It’s difficult to have your own trademark
- must abide to the marketplace rules
- You get paid on monthly basis
- You can be banned