Having the knowledge of how to sell on Amazon without inventory can be pretty advantageous for many vendors. Learn how to get started selling on Amazon with no inventory from Bizistech.
Starting off as an FBA Amazon seller may appear to be difficult at first. For individuals who do not have a previous e-commerce business but wish to get started, the question is: how can you sell on Amazon without having any inventory in-house?
In today’s world of online retail, it’s easy and low-stress to start your own inventory-free home-based business. In this blog, our focus is the following two main methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
You don’t need to stock products to sell on Amazon. In this guide, we’ll show you how to start selling without holding inventory. So, whether you’re just starting or want new techniques to help your business grow, read on for all the information you need about selling without inventory on Amazon.
Table of contents
What Is Amazon Inventory?
Inventory refers to the products that a company sells. For Amazon, this includes items in their warehouses as well as items sold by third-party sellers through the site. When a customer purchases an item from Amazon, they are buying it from either Amazon’s inventory or a third-party seller’s inventory. There are two main types of Amazon inventory:
- Fulfillment by Amazon (FBA):
This is when Amazon sells and ships your products for you. You simply send your products to Amazon’s warehouses, and they take care of the rest.
- Fulfillment by Merchant (FBM):
This is when you sell and ship your products yourself. You list your products on Amazon, and when someone buys them, you ship them to the customer.
Each type of inventory has its own advantages and disadvantages, which we’ll discuss in more detail below.
Advantages of FBA
Fulfillment by Amazon has a number of advantages over Fulfillment by Merchant.
- Amazon Prime:
One of the biggest advantages of FBA is that your products are eligible for Amazon Prime. This means that they will be shipped for free to Amazon Prime members, which could increase your sales.
- Higher Sales:
Studies have shown that products that are fulfilled by Amazon tend to sell better than those that are fulfilled by merchants. This is likely because customers trust Amazon more than they trust individual sellers.
- Fewer Returns:
FBA products also have a lower return rate than FBM products. This is likely because Amazon has stricter quality control procedures in place for its own inventory.
- More Time:
When you fulfill your own orders, you have to package and ship each one yourself. This can take a lot of time, especially if you sell a large volume of products. With FBA, Amazon takes care of all of the shipping for you, so you can spend your time on other aspects of your business.
- Access to Amazon’s Resources:
When you use FBA, you have access to Amazon’s vast resources, including their customer service team, returns department, and marketing tools.
Disadvantages of FBA
There are also some disadvantages to using Fulfillment by Amazon.
The biggest disadvantage of FBA is the fees. Amazon charges fees for storage, shipping, and customer service. These fees can add up, especially if you’re selling a lot of products.
- Long Shipping Times:
Amazon’s shipping times are generally longer than those of other online retailers. This is because they have to ship your products to their warehouses first, and then ship them to the customer. This can add a few days to the shipping time.
- Less Control:
When you use FBA, you have less control over your product. Amazon decides how it will be packaged and shipped, and they also handle customer service. This can be good or bad, depending on your preferences.
Advantages of FBM
Fulfillment by Merchant has a few advantages over Fulfillment by Amazon.
- Lower Fees:
The biggest advantage of FBM is that there are no fees. You only pay for the cost of shipping your products to the customer. This can save you a lot of money, especially if you’re selling a large volume of products.
- Faster Shipping Times:
Another advantage of FBM is that you can usually ship your products faster than with FBA. This is because you don’t have to ship your products to Amazon’s warehouses first. You can simply ship them directly to the customer.
- More Control:
When you use FBM, you have more control over your product. You can decide how it will be packaged and shipped, and you can also handle customer service yourself. This can be good or bad, depending on your preferences.
Disadvantages of FBM
There are also some disadvantages to using Fulfillment by Merchant.
- Higher Shipping Costs:
The biggest disadvantage of FBM is that shipping costs can be higher. This is because you have to pay for the cost of shipping your products to the customer, as well as the cost of packaging and handling.
- More Time Consuming:
Another disadvantage of FBM is that it can be more time-consuming. This is because you have to package and ship each order yourself. This can take a lot of time, especially if you sell a large volume of products.
- Less Trust:
Customers tend to trust Amazon more than they trust individual sellers. This is likely because Amazon has stricter quality control procedures in place for its own inventory.
FBM products also have a higher return rate than FBA products. This is likely because you have to handle returns yourself, and customers may not be familiar with your return policy.
- No Access to Amazon’s Resources:
When you use FBM, you don’t have access to Amazon’s vast resources, including their customer service team, returns department, and marketing tools.
So, Which Should You Use?
It really depends on your preferences. If you want the lowest fees and fastest shipping times, then FBM is the best option for you. However, if you want the convenience of Amazon’s resources and customer service, then FBA is the better option.
Solution Guide: How to Sell on Amazon without Inventory?
If you’re looking to start selling on Amazon but don’t want to deal with the hassle of keeping an inventory, there are a few things you can do.
The first step is to consider utilizing Amazon’s Fulfillment by Amazon (FBA) program. With FBA, Amazon will store your items in their warehouses and handle all shipping and customer service for you. You’ll just have to pay a fee for each item that sells.
Another alternative is to sell your items through drop shipping. This means you’ll work with a supplier who will send items directly to your clients on your behalf.
Instead of worrying about inventory, you’ll just need to focus on fulfilling orders and providing excellent customer service.
Finally, you could sell digital products on Amazon. This might be anything from e-books to online training programs. You won’t have to worry about inventory since there aren’t any physical items involved. If you’re looking to make some easy money, selling on Amazon might be the way to go. Just remember to do your research first so that you know what you’re getting yourself into.
Frequently Asked Questions
By understanding how to sell on Amazon without inventory or with an established Amazon platform, you may choose which approach is best for your next project. There are several options to establish a six-figure Amazon company without inventory once you’ve learned the technique.
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