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Are you looking for ways to make extra income and achieve financial stability without existing capital? Setting up an Amazon business can be a great way to do this. Although it initially seems intimidating, especially for beginners, Amazon has made it possible to become a seller without investing too much money. In this comprehensive guide, we’ll show you how to sell on Amazon without inventory so that you can start your own profitable business without risking your own capital. Learn the different business models available and discover how to get started today!
In this comprehensive guide, we will discuss the following:
The Different Business Models Available to Sell on Amazon Without Inventory
How to Sell on Amazon Without Inventory
Tips for Succeeding as an Amazon Seller Without Inventory
So, keep reading to find out how to set up and run a successful business on Amazon without inventory. Ready to get started? Let’s dive in!
When you enter the world of online selling, one of the key decisions that have to be made is how to manage your inventory. For those who want to take the hassle out of storage and shipping, there are three main options:
FBA is the preferred shipping option for many third-party Amazon sellers because it eliminates the need for packaging, storing, and shipping products individually. Once a seller has their stock ready to go, all they have to do is ship it to the closest fulfillment center. Amazon then takes over picking, packaging, storing the goods in their warehouses and delivering them to customers’ addresses.
The main advantage of using FBA is the convenience and efficiency it offers. Amazon can provide faster delivery times than most sellers are able to on their own, resulting in higher customer satisfaction and more sales. FBA also provides access to Amazon Prime customers, who are more likely to buy from sellers who offer FBA. Finally, Amazon handles returns and customer service for FBA sellers, saving them time and money.
However, the convenience of outsourcing logistics to Amazon does come with an additional cost. FBA fees vary according to product weight and size, making heavier and bigger items more expensive to ship. Despite the extra fees, many Amazon store owners choose FBA because of its benefits.
DropShipping is another popular business model for selling on Amazon without inventory. This type of business involves an online store that purchases products directly from a wholesaler or manufacturer and ships them to the customer. All of this is done without having to store the products in a warehouse or ship the items yourself. This business model allows sellers to keep their costs low, as they don’t have to invest in storage or shipping.
However, dropshipping can be difficult to get right. You need to find a reliable supplier or manufacturer who can provide good quality products at a competitive price. You also need to find a supplier who can handle customer service and manage refunds or exchanges. If you’re not careful, you might end up with unhappy customers and negatively impact your business.
Private labeling is another common business model for selling on Amazon without inventory. In this case, you purchase products from a supplier and then sell them under your own brand. This means that the product is being sold as if it were yours, although it is actually made by a third party. Private labeling allows you to differentiate your product from other sellers and create your own brand identity.
However, private labeling is not suitable for everyone. It requires a significant upfront investment as well as a long-term commitment, so it’s best suited for those who can commit to a high-volume approach and have the resources for it.
Looking for a free Amazon account audit? Let our Amazon gurus assist you in achieving your business goals.
Now that you know the main business models for selling on Amazon without inventory, let’s dive into how you can get started. Here are the steps to follow:
The first step is to pick a niche. You need to choose something that you’re knowledgeable about and has enough demand to make it worthwhile. Once you’ve chosen a niche, you can start researching products that fit into it.
Your next step is to find a supplier. You can search for suppliers on sites like Alibaba or contact manufacturers directly. Once you’ve found a supplier, check their reviews, and ask for samples of the products you’re interested in.
The next step is to set up your Amazon account and create a Seller Central page. This is where you will list your products and manage your orders. Make sure to read through the Terms of Service carefully, as this document outlines the rules you must follow to be successful on Amazon.
Once you’ve set up your account and listed your products, you need to optimize your listings. This includes creating high-quality product descriptions and images, as well as using keywords to help customers find your products. You should also research pricing to make sure you’re offering competitive prices.
At SwiftStart, we offer a free 1-1 Amazon account audit that will help you understand where you stand and what needs to be done to increase your sales.
Now that you’ve set up your Amazon account and listed your products, it’s time to focus on growing your business. Here are some tips to help you succeed as an Amazon seller without inventory:
Advertising is one of the best ways to get your products seen by potential customers. Investing in paid ads on Amazon can help you reach a wider audience and drive more sales.
Another key to success is building relationships with your customers. Make sure you’re responding to their questions and offering excellent customer service. This will help you build loyalty and encourage them to buy from you again in the future.
Finally, it’s important to monitor your performance. Check your metrics regularly and adjust your strategy based on the data you’re seeing. This will ensure that you’re always optimizing your listings and staying ahead of the competition.
Check out our article on the importance of brand awareness through Amazon advertising for more tips.
Selling on Amazon without inventory is a great way to start an eCommerce business. You can build a successful business and generate sales with the right strategies and techniques. Start by choosing your niche, finding a supplier, setting up your Amazon account, and optimizing your listings. Then use advertising, customer relationships, and analytics to grow your business. You can succeed as an Amazon seller without inventory with dedication and hard work.
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We hope now you have a better idea of how to sell products on amazon without inventory. Get in touch with one of our Amazon experts If you have any questions or need help getting started. Check out our Amazon podcast to get exclusive insights and tips on selling on Amazon. Good luck!
Have you ever sold on Amazon without inventory? What strategies have worked best for you? Let us know in the comments! For more information, you can also check out our top-ranking article What You Need to Know Before Selling on Amazon. Thanks for reading!
There are several ways to make money on Amazon without having products. One of the most popular is by joining Amazon's associate program, which allows you to earn an affiliate commission whenever someone purchases from one of your links.
Yes, there are a number of different ways to make money on Amazon without having products or inventory. Some common methods include joining the Amazon Associates program, using third-party fulfillment services such as FBA or Merch by Amazon, and participating in marketplaces like eBay or Etsy.
You can use several different tools and techniques to find products to sell on Amazon. Some popular methods include using product research tools, performing keyword searches, using Pinterest, checking the Amazon best sellers page, and looking at other marketplaces like eBay or Etsy.
The costs of becoming an Amazon reseller will depend on your plan. The Individual plan costs $0.99 for every item sold, while the Professional plan costs $39.99 per month regardless of how many products you sell. Both plans also charge a referral fee on each sale, which varies by product category.
If you are looking for ways to increase your profitability on Amazon, then increasing the average selling price (ASP) of products may be one way.
The ASP is simply defined as "the total revenue divided by number sold." It can help improve overall profit margins and make sure that every sale brings in more money than before!
The balance between decreasing costs and increasing revenue can be tricky, but luckily there are ways for brands to make it work. If a company wants to increase its ASP without raising prices on existing products, it can do so by decreasing costs for sourcing and selling products.
Hard to believe? Let’s look at the 5 proven strategies below:
You can use these strategies to maximize your profit margins. Let's begin with the first one.
Launching a premium product is an excellent way for established brands to expand their customer base in the niche market and make more money. These high-end versions of top-selling items are typically sold at higher prices than regular ones.
It also complements your current inventory while also attracting new buyers who want something different from what you offer now.
A brand’s success is dependent upon having a strong value proposition that appeals so much to customers. And that’s the reason customers are ready to spend a lot more than what they would on other brands’ products.
Undoubtedly, when a company has an amazing value proposition, they are more likely to succeed in the long run.
Toothbrush heads are an excellent example of a product with premium features. Some brands have found creative ways to charge more for their products, such as by creating different varieties of colors. They create value propositions by introducing toothbrushes that can be tailored towards buyers’ personal tastes.
If you're not ready for the Premium Route just yet, consider implementing larger pack sizes in your existing range.
Why stop your customers at a single box when you can have them in bulk? When selling consumer goods, it's all about packaging. Make sure your top-selling products get larger packs of inventory so that customers can buy in bulk and more units can be sold.
For example, if your top-selling product is a 200ml shampoo bottle, you could introduce a 400ml shampoo bottle or even a bigger quantity.
Introducing larger pack sizes can help you make more money. The average price of your portfolio goes up while variable costs go down, thanks to economies of scale!
There's a reason why Amazon has such large pack sizes on their product catalog. It’s because people are shopping for everything!
To increase your average selling price on Amazon, you can create value bundles. Your created bundle conflates two or more items that are sold at a discounted rate and otherwise sold separately at higher prices.
It will help customers purchase multiple products in one go instead of just buying each item individually which increases their total spending as well!
Value bundles are a great way to upsell new and existing customers on your site. You can sell complementary or refillable products to upsell new customers. With this strategy, you can provide more value in one purchase.
The business world is becoming more competitive day by day. As a result, brands need to differentiate themselves not only with what they produce but also how it's sold and where customers can find them easily.
This means using different strategies in order for businesses' offerings to stand out from those around them!
To be successful, premium bundles need a strong value proposition that customers will appreciate. They should anticipate what they're needed and serve them right away with no fuss.
There are several ways to increase your brand’s ASP on Amazon, and to your surprise it can be done without launching a new product, creating bundles, or offering larger pack sizes. Luckily, you can increase your brand’s Amazon ASP by making some changes to your current portfolio mix.
It’s a simple process that begins by identifying products with above-average selling prices in the portfolio. Then, marketing and sales efforts will be focused on these high ticket items that can bring additional revenue for a company.
Remove products from the Amazon marketplace. Yes! You’ve read correctly. Although this might seem like a loss at first glance, there are some seriously good benefits to removing your product. It is suitable in the situation if you have listings of low ASP items.
Amazon has become the everything shop, but you don’t have to take it literally because you never want to sell at a loss.
Amazon's flywheel concept is rooted in providing customers with a wide selection of products, which ultimately drives growth and reduces costs.
It’s always a worry when Amazon removes permanently unprofitable items from their portfolio. The company's systems will initially request funds to keep them active, but if these products continue losing money then they'll eventually get taken away and deleted forever!
So you should consider de-listing products under £10 if they don’t return you a healthy profit margin and aren't key to attracting new or existing customers.
If you don’t want to delete your listings, you can also include a bundle option for customers that would add value to their purchases.
The journey of growing your ASP can be difficult, but it gets easier with time. I hope the tips above have helped you find some good advice on how to get started!
The average selling price may be the easiest and most effective way for you to increase your margins on Amazon, but that's not all there is. There are many ways you can increase your profit margins which we will discuss in our upcoming blog posts.