Selling on Amazon without inventory is a powerful way to start an e-commerce business with low startup costs. Here are five popular methods to sell on Amazon without inventory:

• Amazon Dropshipping
• Amazon Kindle Direct Publishing
• Amazon Merch on Demand
• Amazon Associates Program
• Amazon Audible

Now, do you want to know how each of these methods works? Keep reading to know:

Why might you want to sell on Amazon without inventory?

Following are the reasons people choose Amazon’s zero-inventory selling model for their e-commerce business. These reasons also highlight the benefits of selling on Amazon without holding upfront inventory.

1 - Low startup cost: Inventory is an essential cost that accounts for up to 25 percent of your total budget. When you decide that you’ll sell on Amazon without inventory, you can save a big chunk of your budget. You save on fulfillment logistics, warehousing of inventory, order processing, etc. The saved money can be invested into other things like marketing, advertising, buying a domain for your website, etc.

2 - Reduced financial risk: No inventory required means no risk of overstock, unsold goods, and lost goods. So, there is minimal to no financial risk involved.

3 - No storage space needed: Storage space can consume a significant part of your capital and profit. No inventory means you don’t need to rent or buy storage space.

4 - Scalability: Methods like Amazon Dropshipping lets you to expand your product catalog with as many numbers and a variety of products as you want. So, you can accept a large number of orders. This is because you don’t have to pay any inventory fees or need storage space.

5 - Flexibility: Sell products online from anywhere. Test different products and check what is in demand. Follow and adapt to customer demands and market trends quickly. Do all this without worrying about financial risks.

6 - Global customers: With Amazon services like Amazon Kindle Direct Publishing and Merch on Demand, you can sell to people from any corner of the world.

Ways to sell on Amazon without inventory

Now, let’s dive deeper into each method to sell on Amazon without inventory so you can decide which model is right for you:

Amazon Dropshipping

Dropshipping is a wonderful and popular sales strategy. Here is how it works:

A customer places the order online on your website. The complete order details are forwarded to the supplier. Then, your supplier will ship the product directly to the customer who orders it.

So, you don’t need to buy, store, and oversee inventory. Just make sure you fully understand and follow Amazon’s dropshipping policy to avoid the risk of account suspension.

Here is how Amazon Dropshipping works (Here, you’re the seller):

• The seller signs an agreement with a supplier.
• An Amazon customer orders a product the seller has listed on Amazon.
• Seller receives the order and forwards it to dropshipper.
• Dropshipper ships the order.
• Customer receives their product.

How to start dropshipping on Amazon

Step 1: Create your e-commerce store and Amazon Seller Account.

Step 2: Choose profitable products.

Step 3: Find a supplier.

Step 4: Create and optimize your product listing.

Step 5: Market your products.

Pros & cons of Amazon Dropshipping

Pros:

• Minimal startup costs
• No warehousing
• No inventory management
• Quick set-up
• More discoverability
• Completely automated thanks to apps and plugins

Cons:

• Lower margins
• Huge competition
• Reduced control over quality
• Limited in terms of discounts, offers and promotions
• Difficulty maintaining long-term connections with customers
• Problems with return processing 

Amazon Kindle Direct Publishing (KDP)

Amazon KDP is a self-publishing service that allows writers to publish and sell their books digitally and in printed copies. So, you can bypass traditional publishing and inventory constraints.

You can publish ebooks or paperback under your name with the title author and set the book’s price. So, your work will be available to millions of Amazon users worldwide. They can buy and download the eBook on their Kindle or other devices. When it comes to the paperback version, Amazon will print and ship it to the customers. In exchange, you earn a royalty for each sale.

This year, Amazon announced its new program, KDP audiobooks, to distribute audiobooks with digital narration. Now, authors can sell audiobooks at a price ranging between $3.99 - $14.99 and receive 40% of every sale made through Amazon.

Put simply, you can sell the following through Amazon Kindle Direct Publishing:

• Ebooks
• Printed books - Paperback and hardcover
• Audiobooks

How to publish your book on Amazon Kindle Direct Publishing

Step 1: Write the book.

Step 2: Sign up for Amazon KDP.

Step 3: Add your book details.

Step 4: Add pricing and royalty options.

Step 5: Upload and publish the book.

Pros & cons of self-publishing on Amazon KDP

Pros:

• Have full control over your work
• No upfront fees. It’s free to use
• Publish your work in just 5-10 minutes
• Print-on-Demand
• Sell your books to millions of readers worldwide
• Full content ownership
• Retain a good percentage of the royalties for book sales
• Use Amazon services such as Kindle Countdown Deals and Amazon Kindle Advertising for marketing and promotion.

Cons:

• Highly competitive
• Costs incurred for printed versions
• Agree to the exclusivity clause, meaning you can sell your eBook exclusively on Amazon

Amazon Merch on Demand or Print on Demand

Merch by Amazon (MBA) is meant for designers who want to sell creative products like hoodies and t-shirts featuring their designs.

It’s pretty simple! Follow these steps:

Step 1: Sign up for Amazon Merch.

Step 2: Upload your designs.

Step 3: Select the product type.

Step 4: Amazon approves the design and creates your product listing.

Amazon handles everything from printing and shipping to customer service for every sale. You make income with royalties, ranging between 12-37% based on the product’s price.

Pros and cons of Amazon Merch on Demand

Pros:

• Easy to use
• No upfront cost
• Access to a large audience
• Sell branded products under the Prime badge
• Amazon offers a built-in mock-up generator

Cons:

• Competitive market
• Limited product varieties
• No option for cross-platform selling

Amazon Associates Program

Many people ask, “How to make money on Amazon without selling?” The answer is - the Amazon Associates Program.

Content creators, bloggers, and publishers can use Amazon Associates Program to monetize traffic on your blog, website, or social media account.

How to become an Amazon Affiliate

Step 1: Sign up for the Amazon Associates Program.

Step 2: Verify your account.

Step 3: Select the Amazon products you want to promote.

Step 4:Get unique Amazon affiliate links for selected items.

Step 5:Use these affiliate links on your website, apps, social media pages.

When someone clicks on an affiliate link, they land on the corresponding product page on Amazon. Buying the product will earn you a commission.

Pros and cons of the Amazon Associates Program

Pros:

• A well-established brand.
• Wide range of products to promote.
• Excellent affiliate support
• Sell branded products under the Prime badge
• Multiple linking methods

Cons:

• Low affiliate commission
• Cookies last for up to only 24 hours
• No support for PayPal
• To reach traffic in multiple countries, you must join each country's program separately.

How to make money with Amazon Audible

Amazon Audible is for selling audio-books, podcasts, and other types of audio content. Four ways to use this platform to make money are:

1 - Amazon Audible Affiliate Marketing: Make money with commissions by promoting Amazon Audible offerings through affiliate links.

2 - Amazon Audible Creator Program: Earn by promoting Amazon Audible offerings through your podcast.

3 - Become a narrator: Independent authors and self-publishers look for skilled narrators.

4 - Amazon Audible Podcast Development Program: Do you have a workable idea for a fiction or non-fiction podcast? Could you bring ideas to life? Then, pitch the idea to Amazon Audible through the Amazon Audible Podcast Development program and get a $10,000 commission and expert guidance.

Which of these methods would you like to try?

Now that you know the top five methods to sell on Amazon without inventory, it’s time to act. Every method has its pros and cons. By continuing your research and determining your goals, you can be better prepared for selling on Amazon successfully.

Understand that the key to success lies in the product you choose. Make sure you choose a profitable product based on criteria, including competition, sales revenue, etc. Consider using a reliable tool like Profit Cyclops that provides a clear, accurate picture of your true profitability while eliminating manual work and guesswork. Using this tool, you can calculate the SKU-level profitability, including all related costs and fees, total profit margin, ROI, and more for each SKU. Accordingly, you can decide whether to choose a particular product or discontinue selling one. Once you’ve started selling, you can track your profits in real-time with complete and accurate profit & loss reports.

FAQs

How to sell used items on Amazon?

Try Amazon Renewed! Here, you can sell used items, refurbished products, and the alike. Amazon’s qualified and performance-managed supplier inspects every product for quality standards.

How do I sell dead inventory?

Dead inventory refers to items unsold for an extended period and is unlikely to sell. Some common ways to sell dead inventory are:

• Liquidations
• Offer as gifts
• Bundle products
• Clearance stock
• Donate
• Return to suppliers
• Seasonal sales
• Flash sales

How to get the inventory with no money?

By facilitating the option to pre-order, you can create cash flow to be invested in production.