How To Sell On Amazon Without Inventory

Starting an Amazon business can be highly lucrative, but one of the downsides to selling on Amazon is needing space to store the products you sell.

As your business expands, so do the requirements for space. The need to streamline the process of getting products shipped to customers.

In this post, I will explain how to sell on Amazon without inventory and the different ways to run an Amazon store that require little-to-no involvement with actual physical inventory.

Amazon FBA

FBA stands for Fulfilment By Amazon.

FBA is the process of selling and shipping products through the Amazon platform. It is the most popular way of running an Amazon business with 96% of sellers choosing the FBA business model.

How does FBA work?

The seller sends all inventory directly to the Amazon Fulfillment centers, and then Amazon handles all aspects of selling, storage, and shipment for you.

This allows sellers to focus on the more important aspect of the business, like sourcing more products to sell and launching them to increase their profits.

The Pros Of Selling With Amazon FBA

There are many benefits of running an Amazon FBA Business, here are some of them:

  • You’re able to sell private-label products online without having to hold any inventory yourself.
  • Amazon will keep your products in their Amazon fulfillment centers and send them out to the customer as soon as they order.
  • Over 200 Million customers are searching for products on Amazon per month. The FBA business model allows you to take a slice of the very large pie that already exists.
  • Amazon FBA requires very little time commitment after the initial setup, making it perfect for those just getting started with online businesses.
  • You can access powerful analytics tools to track the performance of your products.

The Cons Of Selling With Amazon FBA

Selling with Amazon FBA is a great way to generate passive income, but it doesn’t come without its problems:

  • FBA is a competitive business model, but there are many great FBA courses that can guide you to get an advantage over the competition
  • Starting an FBA business can require a high financial investment in wholesale quantities of inventory.
  • You are not in control of the customer service experience for your products (although the FBA experience tends to be world-class)
  • You may find it difficult to differentiate yourself from other sellers on Amazon.

Dropshipping

Dropshipping is a business model where the seller doesn’t actually hold any inventory, but instead uses a third-party supplier to ship products directly to the customer.

Dropshipping is the best way to sell on Amazon without inventory. Not only do you not need to store inventory – you don’t even need to own any!

How Does Dropshipping Work?

You simply act as the middleman between your customers and the supplier who stocks the product.

Once a customer places an order on your Amazon store, you then forward the order to your supplier who will then send the product directly to the customer.

The Pros Of Dropshipping

• No need to purchase or store any inventory.

• Can offer a wide variety of products without investing in additional storage space or staff.

• You don’t need to worry about shipping or packaging orders.

• You can focus more on marketing and growing your sales rather than managing the day-to-day operations.

• Overhead costs are much lower as there is no need for additional storage space.

The Cons Of Dropshipping

• Less control over the quality of the products being shipped as you are relying on a third-party supplier.

• Highly competitive business model, so you may have lower profit margins in order to compete.

• The customer service experience is out of your hands and any issues relating to delivery or product quality must be handled by the supplier.

• There may be delays in getting orders processed

Use Third-Party Logistics Companies

Third-Party Logistics (3PL) companies are businesses that provide outsourced services such as warehousing, inventory management, and order fulfillment.

Essentially, A third-party logistics company would offer the same service as Amazon FBA.

3PLs help sellers save time, money, and resources by managing the shipping process for them and are a great way to sell on Amazon without inventory.

For some sellers, using a 3PL may not make the most sense. Amazon FBA could offer the same service, but more efficiently run and cost-effective for sellers.

Not to mention that a 3PL wouldn’t be able to offer the same next-day delivery service as FBA would to Prime members.

The best time to consider working with a 3PL is when you are a new seller. Especially a new seller who wants to increase their storage capacity during sales events, like Black Friday or Prime Day.

Sellers can add the FBM (Fulfill By Merchant) option to the product listing, and be able to offer higher qualities of products to allow for an increase in sales during the sales event.

The Pros Of Using 3PLs

Much like Amazon FBA, working with a Third-party Logistics company is a great way to run a passive Amazon business. Here are some of the benefits of working with a 3PL:

• No need to manage or store any inventory.

• Access competitive rates without having to pay for additional staff or storage space.

• Increased flexibility in terms of pricing. You won’t be paying for shipping costs upfront or storing your own products.

• You can focus on marketing and growing your business, rather than managing the day-to-day operations.

• You have access to powerful analytics tools to track performance and inventory levels.

• Scale quickly without having to invest in additional staff or storage space.

The Cons Of Using 3PLs

The downside to working with third-party inventory solutions is that Amazon already provides a world-class solution. This is very difficult to compete with.

Here are some of the other cons to working with a 3PL:

• You may not have as much control over customer service as you would if you were handling all of the processes yourself.

• Certain 3PL companies may require minimum orders, which could limit your ability to manage costs effectively.

• There is a risk that something may go wrong with the order fulfillment process and it’s out of your hands if it does.

Sell Digital Products

Selling digital products is the ultimate answer to “how to sell on Amazon without inventory”. Technically, your product doesn’t ‘physically” exist!

Digital products are any type of product that is available in digital forms, such as ebooks, video lessons, software programs, music downloads, etc.

Selling digital products is an attractive option for those who want to know how to sell on Amazon without inventory. It eliminates the need to purchase or store any physical inventory.

The Pros Of Selling Digital Products

• You don’t need to worry about shipping or packaging orders.

• You have access to a global market since you can easily deliver your product digitally in any corner of the world.

• No need to manage returns or defective products. You are simply delivering information rather than a physical product.

• You don’t need to worry about buying or storing any inventory, which reduces overhead costs.

• You can easily scale up your product offering without having to invest in additional storage space or staff.

The Cons Of Selling Digital Products

• Margins may be tight since customers are used to paying significantly less for digital products than physical ones.

• You will have to deal with digital theft, as it is easy for customers to copy and distribute your work without permission.

• There is a risk that the customer may not be satisfied with the product, which could lead to negative reviews or refunds.

• It can take time and resources to create high-quality digital products,

How To Get Started Selling On Amazon

Whether you decided to sell on Amazon leveraging the FBA model, or sell digital products, the process is similar in regards to set up.

If you’re a complete newbie and need some guidance on:

  • how to start an Amazon store,
  • how to source products,
  • how to launch your brand,
  • and how to scale your business,

Viral Launch has an incredible FREE course that will show you how to do all of these tasks and more:

In Summary

Hopefully, this post has shown you 4 ways how to sell on Amazon without inventory.

Selling on Amazon without inventory can be a great way to start or expand your business.

There are several options available, such as dropshipping, using third-party logistics companies, and selling digital products.

Each of these methods has its own pros and cons. It’s important to carefully consider which one is right for you before taking the plunge.

No matter what option you choose, with the right strategy in place, you can find success selling on Amazon without investing in any inventory.

How To Sell Books on Amazon

A Beginners Guide (Part 1)

We’ve all been there. You look around and notice you have somehow collected enough books to open a mini library. There’s old textbooks you’ll never use, books that were given to you as gifts, and the stack of books you keep saying “one day” to.

No? Just us? That’s fine.

The point is, sometimes you find yourself with a stash of books, and you don’t know what to do with them. You could donate them, but sometimes those books cost a small fortune. And you don’t want to lose out on all that cash you spent on that geology textbook you didn’t even use (Sorry, college professors). So, what do you do with them?

Solution: Sell Used Books on Amazon

If you’re looking to get into the Amazon selling game, selling your new or used books is a great place to start. There’s no risk of spending a small fortune sourcing a product that may or may not sell and no need to worry about manufacturing or importing costs.

And if you’re already in the Amazon selling game, adding books to your inventory is a no-brainer if you’re looking to make a few extra bucks here and there.

How to Sell Used Books on Amazon – Getting Started

First things first, you’ll need a stash of books to sell, and you’ll need an Amazon seller account to access your dashboard, Seller Central. Amazon offers two types for you to choose from: Individual Seller or Professional Seller

Individual Seller: $0.99 per sale closing fee, NO monthly subscription

Professional Seller: $39.99 monthly subscription fee, NO per sale closing fee

If you’re unsure which option is right for you, consider how many books you are wanting to sell per month. Amazon allows a maximum of 40 items per month on an Individual seller account. If you are planning on selling more than 40 books, or you are planning on selling books in addition to other products totaling more than 40, you will want to opt for a Professional seller account.

Listing Information – What You Need to Know

Once your Seller Account is all set up and ready to go, gather the appropriate information about your books. This allows you to have all your information readily available when it comes time to actually list them on Amazon.

Whether you just make sure you know where the information is located in each book or you write it down so it’s all in one place, here is the information to gather:

  • Title
  • Author(s)
  • ISBN
  • Publisher information
  • Book condition

What’s an ISBN and where can I find it?

ISBN is an International Standard Book Number. They always consist of 13 digits and are assigned to each edition and variation of a book. It can be found on the book’s barcode.

How do I know what the book condition is?

When selling pre-owned books on Amazon, you are required to list the book’s condition. This is applicable to hardcover and paperback books.

Your books can be one of six types of conditions:

  • New
  • Used – Like New
  • Used – Very Good
  • Used – Good
  • Used – Acceptable
  • Used – Unacceptable

Books categorized as Unacceptable are not sold on Amazon. This includes books that are sale of advance reading copies, including uncorrected proofs, of in-print or not-yet-published books.

Listing Books to Sell on Amazon

Once you have all the information, you’re ready to list your books for sale. When it comes to actually listing books, Amazon is by far the easiest platform to use. Creating a listing for your book can take as little as one minute.

When starting a listing, there are three different options for you to choose from:

  • “Sell Your Stuff” and enter the Title or ISBN number
  • Search for the book as if you were wanting to buy it and click “Start Selling”
  • List a New Title if no results come up for the ISBN you’re wanting to sell

Sell My Stuff

Go into your Seller Central and find the “Sell Your Stuff” tab. Type in the title or the ISBN number and search. Make sure your category is set to “Books.”

Click “Start Selling” and begin your listing.

Start Selling

Go to the Amazon homepage and use the search bar to find the book you are looking to sell. Once you find it, go to the listing detail page.

Click “Sell on Amazon” on the right side of the screen to begin your listing.

New Title

On the rare occasion the above two options don’t work, Amazon will provide you with the option to create a brand new listing.

This will happen when you search for an ISBN and no results come up, meaning there is no existing listing for that book. Amazon will then direct you to begin a new listing.

For a new listing, you will need to provide the following:

  • Title
  • Author
  • ISBN
  • Publisher information

Setting the Price – What’s the best price to sell my books for on Amazon?

When listing your book, Amazon shows you how many other offers for the same book are being sold and what price range the books are selling within.

This is super convenient and helpful, as it will allow you to determine your price point. If you’re a new seller listing a single copy of a book, you should list it as the lowest price in the price range. This will boost the chances of a quick sale.

For some books, it might make more sense to list in the higher price range. This could be for current edition textbooks, first edition novels, or special edition books.

Shipping and Costs

Once you input all the required information and click “Save,” your listing will go live on Amazon and will be ready for potential buyers to search for.

You will need to decide on your shipping method: FBM vs FBA.

FBM – Fulfilled by Merchant

If you’re only selling a handful of books, this might be the option for you. Because you already have the books, you just keep them in your house until someone buys them. No additional storage fees! Once a book is sold, you are responsible for boxing it up, labeling, and shipping it out. Shipping costs can be calculated into your initial price point.

FBA – Fulfilled by Amazon

If you’re selling more than 40 books, multiple copies of a book, or you don’t want to have to worry about shipping, FBA is a great option. For extra fees, you ship your inventory to an Amazon Fulfillment Center and they take care of the rest when an order is placed.

Make sure you fully research the pros and cons of FBA and FBM before deciding. Deciding on a fulfillment method is important as additional steps and fees may apply.

The Pay Out

Getting paid is arguably the best part about selling on Amazon. If you already set up your seller account and have everything approved, you probably remember Amazon requesting your bank information.

Amazon will directly deposit payments into your account every two weeks. Each deposit can take up to 5 business days and Amazon will send you a notification when the payment is sent.

Other Ways to Sell Books

If you’re looking to sell books that aren’t pre-owned or used, there are definitely options. Amazon offers 5 book selling portals for you to sell from if you wish. These portals are for selling e-books, audio books, and even self-published books. But that’s a blog for another day!

If you’re interested in learning more about how to become an Amazon Seller, subscribe to the Viral Launch blog, YouTube channel, and our podcast: Follow the Data: Your Journey to Amazon FBA Success.

While Amazon is now the second largest ecommerce platform in terms of sales, it actually got its humble beginning as an online bookstore in 1994. It all began inside of Jeff Bezos’ rented garage in Bellevue, Washington!

Jeff Bezos chose books due to the high demand of literature worldwide and their low price point. This still stands true today so selling used books on Amazon is a smart move to make some extra pocket change and relieve your overcrowded bookshelves.

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