10/1/23, 2:18 AM How To Sell On Amazon Without Inventory (2023 Guide)

How To Sell On Amazon Without

Inventory And Increase Profits By
200%
14 minutes read

Do you dream of making money on Amazon without the hassle of managing inventory?
Well, it’s time to turn that dream into a reality! Learning how to sell on Amazon
without inventory is a smart and lucrative business model.

Subsequently, we will explore two popular methods: Fulfillment by Amazon

(FBA) and dropshipping. So, are you ready to learn how to sell on Amazon without
inventory and join the ranks of successful online sellers? Let’s get started!

What Is Dropshipping?

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Dropshipping is a retail fulfillment method that allows us to list products for sale on
websites or online marketplaces, such as Amazon. Since the products come from third-
party suppliers, there’s no need to hold physical inventory.

Here is an overview of how dropshipping works:

Dropshipper sources the product from a supplier and offers it on Amazon

Buyer purchases the product from the Amazon dropshipping store
Dropshipper buys the product and inputs customer details on the supplier’s website
Dropshipper gains a profit from the sale
The supplier processes the order and ships it to the buyer

Overall, dropshipping is a low-risk and high-reward business model. Dropshipping on

Amazon is convenient for sellers due to low investment and overhead costs. Thus,
these factors make dropshipping an attractive option for those looking to start
a profitable eCommerce business.

What Is Amazon FBA?

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Fulfillment by Amazon (FBA) is a service that allows us to store our products in

Amazon’s fulfillment centers. Once our products are in the fulfillment center, Amazon
takes care of all the storage, packaging, and shipping of the items to customers. This
means we don’t need to handle inventory, and Amazon handles all customer service
inquiries and returns.

In addition, this service lets us access Amazon’s Prime shipping program, which offers
fast and free shipping arrangements. However, the FBA service requires various
fees.

For those who want to explore how to sell on Amazon without inventory through FBA,
we must consider all these fees before selling. Nevertheless, we’ll look more into the
advantages and disadvantages further down.

How To Sell On Amazon Without Inventory:

Dropshipping Guide
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One of the most profitable ways to sell on Amazon without inventory is dropshipping.
So, let’s discover how to multiply our profits while dropshipping on Amazon.

Here is a brief guide to help us get our dropshipping business started:

1. Discover Best-Sellers: Product Research

2. Select A Reliable Dropshipping Supplier
3. Import Products To Your Amazon Store
4. Launch Your Store & Start Fulfilling Orders

Buckle up, as we explore the steps toward Amazon dropshipping success.

1. Discover Best-Sellers: Product Research

One of the essential steps in learning how to sell on Amazon without inventory
is choosing the right products. Remember that the quality and popularity of the items
we dropship are crucial to gaining massive profits. We can discover trends, analyze the
competition, and uncover market demands through product research.

With that said, here are tested product-finding methods that we can adopt when
dropshipping on Amazon:

AutoDS Winning Products Hub

AutoDS Product-Finding Blog & YouTube Playlist
Amazon Best Sellers / Movers & Shakers
AliExpress Dropshipping Center
Spy On The Competition
Google Trends & Google Lens

Next, we’ll review how these techniques help us find top-selling products.

AutoDS Winning Products Hub

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The AutoDS Winning Products Hub provides a wide range of products suitable for
Amazon dropshipping. This platform extends additional features, such as product
insights and competitor analysis. For instance, we can access an item’s original cost,
retail price, and profit potential.

Aside from this, the Hub helps us analyze the competition by assessing current sellers
and Facebook ads. Through these insights, we’ll know our target audiences and adopt
the best practices for an optimized business. Notably, it’s an automated product
research method, saving us from spending hours searching for high-profit potential
products.

AutoDS Product-Finding Blog & YouTube Playlist

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Another way to find best-sellers is by checking out the AutoDS Product-Finding

Blog and ‘Sell These Now’ YouTube Playlist. These platforms provide updated
content about the latest market trends and best-selling products. To mention a few, we
can explore monthly product articles, niche-specific content, and more.

Amazon Best Sellers / Movers & Shakers

Meanwhile, Amazon’s Best Sellers and Movers & Shakers provide lists of products
with high sales volumes. These pages display a wide selection of high-converting
products and frequently bought items. So, we won’t need to search for items to sell, as
these sections give concrete suggestions for us.

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AliExpress Dropshipping Center

The AliExpress Dropshipping Center lets us access millions of low-cost and trending
products to sell on Amazon. It helps us seamlessly search for items by applying
filters, such as warehouses, price ranges, reviews, and more. Plus, we can get top
suggestions for best-selling products from AliExpress, and offer the same items on our
Amazon dropshipping stores.

Spy On The Competition

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Next up, we can spy on the competition to gain insights into the winning products and
strategies of other sellers on Amazon. To do this, we can manually scan other stores on
Amazon or utilize paid tools, such as Jungle Scout. By spying on other sellers, we can
explore more product ideas that cater to the needs of a broader market.

Google Trends & Google Lens

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Google Trends and Google Lens are helpful tools we can utilize to uncover relevant
product information and sales metrics. When using Google Trends, we can analyze
the popularity of products through customer search results and web activities.

On the other hand, Google Lens is an AI image recognition technology that lets
us discover suppliers by scanning product images. Thus, we can utilize this tool while
spying on our competitors to know where they source their winning products.

2. Select A Reliable Dropshipping Supplier

Once we have product ideas to sell, the next step is to choose a reliable supplier from
whom we can source our items. Since our suppliers are important in providing high-
quality products and top-caliber services, we must only work with trusted platforms.

When selecting a reliable supplier for our Amazon dropshipping business, here
are crucial factors we must consider:

International warehouses

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Comprehensive product catalog

Competitive pricing
Practical return, payment, and shipping policies
Positive reviews
Exceptional customer service

On that note, the following are some excellent suppliers that can provide our Amazon
dropshipping business with worthwhile benefits:

Walmart
AliExpress
Banggood
CJDropshipping
The AutoDS Warehouse

Notably, the AutoDS warehouse is an order fulfillment center that stores products
ready for dropshipping. Plus, it allows us to build our brands by incorporating our logos
into products or packages.

Aside from these platforms, AutoDS integrates with more suppliers we can work
with. With AutoDS-supported suppliers, our Amazon dropshipping business can enjoy
automated sourcing solutions and other worthwhile benefits. Through its integration with
reliable platforms, dropshippers can achieve success with AutoDS.

3. Import Products To Your Amazon Store

Now that we have our products and their sources, we can add products to our Amazon
dropshipping stores. To import products, we must create Amazon listings.

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To begin with, it’s important to verify whether we have the authorization to sell a
particular product or brand on Amazon. This can be achieved by clicking the ‘Sell On
Amazon’ option on the right-hand side. Otherwise, we’ll have to request it from the
brand owner or company.

Amazon may require us to seek approval from the brand before we can sell the
products. However, most of the time, AutoDS will notify us if brand approval is
necessary, along with a link to Amazon that explains how to acquire it.

If we can sell the product, we can manually create a listing by providing all the
necessary details. However, manually creating a listing on Amazon can take a lot of
time and effort.

That is why, we can opt for automatic importing methods to add products faster and
easier. As such, AutoDS provides a single product uploader, bulk importer, or scheduled
imports. Next, let’s demonstrate adding a product using the AutoDS’ automated
product importer.

AutoDS Automated Product Importer

To start, we’ll search for a trending item on our supplier’s website and copy the
product URL. Then, we’ll head to the AutoDS platform and click ‘Add Single

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Product’ on the left sidebar.

In the dialog box, we need to paste the URL and provide the ASIN. The ASIN is
the Amazon Standard Identification Number, uniquely assigned to every product.
Then, click ‘Edit Now (Quick)’ to start importing the product.

Once the transfer is complete, the item moves to the ‘Drafts’ section of AutoDS. Here,
we can set relevant tags, practical shipping methods, and diverse product variants.

When adding product variants, we need to set competitive prices so that our items will
be at the top results of the Buy Box. The Buy Box is the ‘Add to Cart’ or ‘Buy
Now’ pages, where we compete for sales with other stores.

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On the downside, we cannot directly revise titles, descriptions, images, and

specifications on AutoDS. We need to carry out the changes on these aspects on
Amazon. After we optimize our product, we can save and import the product to our
Amazon dropshipping store.

4. Launch Your Store & Start Fulfilling Orders

After establishing our product listings, we can launch our dropshipping stores. Once
customers start accessing our products, we’ll start receiving orders. Then, we need to
fulfill customer demands promptly.

Generally, we can fulfill customer orders in two ways: manually and automatically.

To fulfill Amazon orders manually, we must obtain the customer shipping address
from the order details page. After that, we ship the order to the given delivery address
using the preferred shipping method. Afterward, we must click ‘Confirm
Shipment’ from the ‘Manage Orders’ section and provide all the necessary details.

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However, manually fulfilling orders is inefficient, especially when several orders are
waiting to be served. Plus, this method is prone to input errors in customer details and
delays in fulfillment.

To save us from this tiresome process, we can adopt automation to carry out the order
fulfillment task. Automating this aspect can save a significant amount of time and can
fast-track the order fulfillment process.

With that said, AutoDS has the Automatic Orders feature that can fulfill customer
orders round the clock. This tool utilizes our buyer accounts, which are our preferred
payment methods on the suppliers’ websites. Also, this feature allows us to monitor
customer order details under one dashboard conveniently.

Automating the order fulfillment process on Amazon differs from other selling channels
since we still need to provide customer shipping details. We can do this under the
order settings on AutoDS instead. Then, we can forward the details for automatic order
fulfillment.

Moreover, this automatic order fulfillment method provides real-time tracking

updates on the whereabouts of customer packages. Now, we can sit back and relax as
AutoDS serves customer demands while we generate passive income.

FBA Vs. Dropshipping – Which Is Best?

Search

FBA Pros FBA Cons Dropshipping Pros Dropshipping Cons

Easy order fulfillment Upfront fee Low-risk model Competition

Shipping discounts Restock limits Dropshipping No control over
Customer support Unsold automation stock/shipping
management inventory Easy scalability Product refunds

What is the best business model to adopt when selling on Amazon without inventory?
To help us decide, let’s weigh the benefits and drawbacks of dropshipping and FBA.

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Dropshipping Pros

Low-risk model
No storage fees
Dropshipping automation
Easy scalability
Cross-channel selling

Primarily, dropshipping is a low-risk business model with minimal start-up investment.

With no physical storefront or warehouse to maintain, we won’t incur storage or
inventory expenses. In addition, we can adopt dropshipping automation to streamline
the everyday tasks of running our online businesses.

Furthermore, dropshipping is highly scalable, meaning we can easily test trending

products and reach diverse markets. Similarly, dropshipping allows us to sell across
different channels. The flexibility and profitability of this business model can help us
achieve enormous passive income in the long run.

Dropshipping Cons

Competition
No control over stock/shipping
Product refunds

Since dropshipping is a popular business model, we can expect tight competition in

many niches. It can be challenging to stand out and build a profitable business. That’s
why, we must invest in proven marketing techniques to increase brand awareness
and drive more sales.

Since we are not in control of the shipping and fulfillment process, there is a risk of
errors, delays, and lost or damaged packages. Also, product refunds depend on our
supplier’s policies. Therefore, we must work with reliable suppliers who can fulfill
customer demands satisfactorily and offer practical business policies.

FBA Pros

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Easy order fulfillment

Organic traffic
Shipping discounts
Customer support management
Easy returns

Amazon FBA eliminates the need for us to worry about storage location, customer
service, handling returns, packing, and shipping. This means we can efficiently fulfill
orders and focus on selling more products. Plus, Amazon has organic traffic to help
us drive more viewers and turn them into buyers.

As Amazon FBA listings automatically qualify for Amazon Prime, we can provide
customers with free, fast, and discounted shipping. Moreover, this business model
extends excellent customer support, resolving issues promptly. Finally, Amazon FBA
implements an easy return process, extending up to a 45-day return period window.

FBA Cons

Upfront fee
Storage fees
Restock limits
Unsold inventory

As a drawback, FBA implements charges, such as subscription, selling, referral, and

removal fees. Besides these costs, the platform charges inventory fees for storing,
packing, and shipping products. Thus, we must consider all costs when assigning
product prices.

In addition, Amazon FBA has restocking limits to manage inventory and warehouse
restrictions. Since Amazon FBA maintains physical stocks, there’s a bigger chance
of unsold inventory, resulting in losses. Before adding products, we must
conduct thorough product research to ensure we’re selling popular and profitable items.

Upon weighing the pros and cons, dropshipping is a better option for selling on
Amazon without inventory. As such, dropshipping is a more flexible and lucrative
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business model that minimizes the risk of financial loss.

Streamline Your Amazon Dropshipping

Business With Automation

Running an Amazon dropshipping business can be overwhelming, especially if we have

many products to manage. But don’t worry; dropshipping automation is here to help
us run our Amazon stores more efficiently.

An exceptional automation tool for Amazon dropshipping is AutoDS. This dropshipping

solution offers a range of features to help us manage our Amazon store smoothly. Some
of the key benefits of using AutoDS include:

Advanced Product Research Marketplace

Quick Product Imports
Price/Stock Monitoring
Automatic Order Fulfillment
and much more!

Dropshipping automation can help us streamline our Amazon businesses and save
time by handling repetitive tasks. By using a dropshipping automation tool, we can avoid
errors, reduce the risk of delays, and easily scale our business.

Frequently Asked Questions

Is It Possible To Sell On Amazon Without Holding Product Inventory?

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Yes, it is possible to sell on Amazon without holding product inventory. On that note, you
can utilize two popular business models: dropshipping and Amazon FBA.

Do I Need To Have A Warehouse To Sell On Amazon?

No, you do not need a warehouse to sell on Amazon. You can use Amazon’s fulfillment
services, called Fulfillment by Amazon (FBA), to store, pack, and ship your products.
Likewise, the dropshipping model allows you to offer products, directly from suppliers,
without maintaining physical stock.

Can I Sell On Amazon Without A Business License?

Yes, in most cases, it is possible to sell on Amazon without a business license.

However, you will need to provide certain information to Amazon to register as a seller,
such as your legal name, address, and tax identification number. Depending on your
location and the products you are selling, you may also need to obtain certain permits or
licenses to comply with local regulations.

What Is The Difference Between Amazon FBA And Dropshipping?

Amazon FBA stores and ships products from their fulfillment centers. Meanwhile,
dropshipping doesn’t require sellers to hold any inventory. Instead, dropshippers send
the order details to a supplier who ships directly to customers.

Conclusion
Ultimately, knowing how to sell on Amazon without inventory can help us establish a
profitable online business. We can enjoy massive profits through dropshipping without
worrying about losses or unsold goods.

Join the AutoDS Live

Dropshipping Q&A
Expert tips and best practices for
dropshipping

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REGISTER FOR FREE

As we scale our Amazon dropshipping business, we must adopt efficient automated

processes. Remember that time is money when doing business. So, to maximize our
profit potential, we need to streamline different aspects of our dropshipping venture.

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