How to Sell on Amazon Without Inventory: Proven Business Models and Strategies

One of the popular search queries by online sellers and entrepreneurs is “How to sell on Amazon without inventory.” New and experienced Amazon sellers see this approach as a strategic way to build a scalable, low-risk online business.

Whether you are just starting or looking to diversify your revenue streams, various models enable you to sell on Amazon without inventory. In this guide, we outline several proven methods for selling on Amazon without inventory, along with expert strategies to remain competitive in a constantly changing marketplace.

How to Sell on Amazon Without Inventory

Selling on Amazon without inventory is possible and highly scalable. Whether starting a side hustle or aiming to build a full-time Amazon business, there are proven methods to help you succeed. 

Below are four effective strategies demonstrating how to sell on Amazon without inventory, so you can get started without physically handling a single product.

1. Amazon Dropshipping: Low-Risk Entry with High Attention to Details

Dropshipping is a popular method that allows entrepreneurs to sell on Amazon without inventory. This model is ideal for newbie sellers looking to run a low-risk, low-overhead business. Here is a breakdown of how the dropshipping process works:

• The seller signs an agreement with a dropshipping supplier. This partnership lets the Amazon seller list and sell the supplier’s products on the Amazon marketplace.
• A customer places an order on Amazon, which appears as a regular online purchase from the customer’s end.
• The Amazon seller receives the order, and an order confirmation is sent to the Amazon shopper, reassuring shoppers that their purchase was successful.
• The Amazon dropshipper then forwards the order details to the dropshipping supplier. This includes the customer’s shipping information and the specific product ordered.
• The dropshipping supplier packages and ships the product directly to the customer in accordance with Amazon packaging guidelines. 
• The customer receives their product without knowing it came from a third-party supplier.

This seamless process allows the seller to focus on marketing, customer service, and growth strategies while the supplier handles logistics. For in-depth strategy, tools, and step-by-step instructions, check out our Complete Guide to Amazon Dropshipping.

How to Start Dropshipping on Amazon

Dropshipping on Amazon is a viable option for those searching online for how to sell on Amazon without inventory. Here’s a clear overview of the steps to start Amazon dropshipping:

1. Set Up Your Amazon Seller Account: Online sellers or entrepreneurs can choose an Individual or Professional selling plan based on their needs.

2.Find Reliable Suppliers: Amazon dropshippers must partner with suppliers capable of fulfilling orders quickly while maintaining product quality.

3. Create Product Listings: Ensure your Amazon listings are accurate, appealing, and optimized for Amazon’s search algorithm.

4. Manage Orders and Customer Service: Keep a close eye on orders and handle customer inquiries professionally. 

Compliance with Amazon Dropshipping Policy

Understanding and adhering to Amazon’s dropshipping policy is crucial for maintaining a seller account. Non-compliance can lead to serious consequences, including account suspension. Here’s a summary of Amazon’s key dropshipping requirements:

• Be the Seller of Record: You must be identified as the seller of record on all packing slips, invoices, and external packaging.
• Remove Third-Party Identifiers: Ensure that any information indicating a third-party supplier is removed from the packaging and shipping documents. This includes logos, contact information, or branding that could confuse customers about who is fulfilling the order.
• Assume Full Responsibility: You are responsible for accepting and processing customer returns and handling all customer service inquiries. This means you must be prepared to manage any issues that arise post-sale.
  

Pros & Cons of Dropshipping on Amazon

Before starting dropshipping on Amazon, it is essential to consider the advantages and challenges associated with this business model. Here is an overview of the pros and cons of dropshipping on Amazon:

Pros:

• Low upfront investment.
• No need to manage inventory or handle shipping.

Cons:

• Thin profit margins.
• Limited control over product quality and shipping times.

Expert Tips for Success in Amazon Dropshipping

To succeed in Amazon dropshipping, it is essential to focus on compliance, efficiency, and customer care. Below are tips to help you remain competitive while minimizing risks.

Adhere to Primary Dropshipping Policy

It is important to emphasize that when dropshipping on Amazon, you must be the official seller of record. This means your name must appear on all packaging and invoices. To remain compliant, any mention of third-party suppliers must be completely removed.

Pick the Right Selling Plan 

Choose based on volume:

• Individual Plan – Ideal for sellers with fewer than 40 sales per month.
• Professional Plan – Ideal for high-volume sellers with access to advanced Amazon seller tools.

Use Amazon’s Built-In Tools

Maximize available resources such as Seller University, Amazon Seller Forums, Amazon guide videos, and automated pricing tools to streamline your operations and maintain competitiveness.

Focus on Customer Service

You are responsible for all customer interactions. Respond promptly, communicate clearly, and resolve any issues quickly to maintain good reviews and favorable seller metrics.

Monitor Performance Metrics

Keep track of your Order Defect Rate (ODR), late shipment rates, and feedback scores. Strong performance helps keep your account in good standing and increases your chances of winning the Amazon Buy Box.

2. Print-on-Demand: Sell Custom Products Without Stocking Anything

Print-on-demand (POD) is an effective method for those exploring how to sell on Amazon without inventory. This business model allows sellers to offer custom-designed products, such as T-shirts and hoodies, without the need to maintain stock or invest upfront in large batches.

There are two main approaches to operating a print-on-demand business on Amazon:

• Amazon Merch on Demand – This program lets sellers upload their design to the platform, and Amazon handles printing, packing, and shipping to customers.
• Third-party POD providers – Services like Printful and Printify integrate with Amazon Seller Central and manage production and fulfillment when a customer places an order.

Both options enable you to sell physical products without inventory, allowing you more time to concentrate on design, branding, and marketing.

How to Start Selling Print-on-Demand Products on Amazon

As mentioned above, two ways exist to begin selling print-on-demand products on Amazon. Below is a guide for both options to help you start quickly and efficiently.

Using Third-Party Print-On-Demand (POD) Providers:

• Create an Amazon Seller Central account.
• Sign up for a POD platform like Printful or Printify.
• Connect your POD account to your Amazon store.
• Upload your designs, select the products you want to sell, set your pricing, and publish your listings.
• Orders will be automatically fulfilled and shipped by the POD provider.

Using Amazon Merch on Demand:

• Apply for an account at merch.amazon.com.
• Once approved, upload your design, choose the product type, and set your price.
• Amazon handles everything, including printing, shipping, customer service, and returns.
• You earn royalties on each sale, with no upfront costs or inventory required.

To learn more about Amazon’s print-on-demand service, read our detailed article: Important Things You Should Know About Amazon Merch on Demand.

Amazon Print-on-Demand Policy Compliance

Key takeaways for staying compliant include providing accurate product descriptions and setting realistic shipping expectations. Avoid misleading images or promising delivery speeds that your POD provider cannot meet.

If you are using Amazon Merch, compliance is simpler—Amazon handles fulfillment, shipping, and customer service on your behalf. However, when working with third-party POD providers, you are fully responsible for meeting Amazon’s delivery and customer satisfaction standards. Failing to do so can lead to negative reviews.

Pros and Cons of Selling Print-on-Demand on Amazon

Pros:

• No upfront investment in inventory is required.
• Offers creative freedom and branding opportunities.
• Simplifies the process of testing new product ideas or trending designs.

Cons:

• Profit margins are generally lower compared to bulk manufacturing.
• There is less control over product quality and shipping times when using third-party providers.
• Amazon Merch has tier limitations and requires approval for access.

Expert Tips for Print-on-Demand

To succeed with print-on-demand and truly master how to sell on Amazon without inventory, consider these proven strategies:

Target a Specific Niche

Focus your designs on a clearly defined audience, such as pet owners, fitness enthusiasts, or gamers. A targeted niche helps you stand out and attract loyal, repeat customers.

Use High-Quality Mockups and SEO

Display your products using professional mockups that reflect real-life use, especially when marketing outside the Amazon marketplace. Optimize your listings with relevant, high-traffic keywords to improve their visibility in Amazon search results.

Offer Customization Options

If your print-on-demand (POD) platform allows, enable personalization features, such as adding names or selecting colors. Customized items convert better and are popular for gifting.

Deliver Excellent Customer Service

You are still responsible for customer interactions, even with fulfillment handled by a POD provider. Whether on Amazon or other platforms, fast, courteous responses and quick resolutions are essential for maintaining positive feedback and account health.

Track Fulfillment and Customer Feedback

Regularly monitor your provider’s delivery times, especially during peak seasons. Keep an eye on reviews to identify any issues with product quality or shipping delays, and consider switching providers if necessary.

3. Amazon Wholesale: Inventory-Free from Your End

Amazon Wholesale (Wholesale FBA) is a business model where you purchase bulk products directly from manufacturers or distributors and have them shipped straight to Amazon’s fulfillment centers. Once the products are received, Amazon stores the inventory, manages order fulfillment, and handles customer service.

This model is ideal for sellers who want to scale their business quickly without the complications of managing shipping or storage. It allows you to focus on essential tasks like product research, optimizing product listings, and tracking profits.

How to Start Amazon Wholesale 

Wholesale FBA allows you to take advantage of Amazon’s vast customer base and logistics network while maintaining control over your inventory. Below are the key steps to help you successfully launch a wholesale FBA business:

• Find Profitable Products: Utilize tools like Helium 10, Keepa, or SellerApp to identify products with strong demand and stable prices.
• Vet and Contact Suppliers: Partner with verified wholesalers to ensure you receive the best rates and authentic products.
• Set Up Shipments to Amazon FBA: Adhere to Amazon’s shipping and labeling requirements to send your bulk inventory directly to their fulfillment centers.
• Optimize Your Listings: Make sure your product listings feature clear images, compelling descriptions, and relevant keywords to maximize visibility.

Amazon Wholesale FBA Policy: What You Need to Know

It is crucial to adhere to Amazon’s policies when sourcing and selling wholesale products. Here are some key points to consider:

Authorized Sourcing: Always purchase from legitimate wholesalers or manufacturers. Avoid gray market goods to prevent listing removals or issues with your account.

Product Authenticity: Be prepared to provide invoices or documentation that verify the authenticity of your products and your relationship with the supplier.

Compliance with Brand Guidelines: Many brands impose restrictions on who can sell their products. Always check for reseller rights to avoid potential intellectual property complaints.

Pros & Cons of Wholesale FBA

Amazon Wholesale has its advantages and disadvantages, much like any business model. Here are some of the advantages and disadvantages of Amazon Wholesale

Pros:

• You gain access to Amazon Prime’s fast-shipping customer base.
• Amazon takes care of storage, shipping, and customer support.

Cons:

• It requires a significant upfront investment in inventory.
• Product listings may encounter fierce competition from other sellers.
  

Expert Tips for Wholesale FBA

Mastering Amazon Wholesale involves strategic sourcing and pricing tactics to maximize profitability while minimizing risk. Keep these insights in mind to build a scalable and compliant wholesale business on Amazon:

Use AI-Based Repricing Tools: To increase your sales and avoid price wars, consider using AI-powered Amazon repricers. These tools automatically adjust your prices in real-time based on market trends, essential for remaining competitive in the Buy Box without excessively cutting into your profit margins.

Build Strong Supplier Relationships: Reliable suppliers are critical to your business. Maintain good communication, negotiate better terms, and secure exclusive deals whenever possible to reduce competition.

Leverage Amazon Brand Analytics: Utilize data insights from Amazon to understand customer behavior, identify trending products, and refine your sourcing strategy.

Prepare for Seasonal Demand: Plan your inventory purchases of peak seasons, such as holidays, to ensure you do not miss out on sales opportunities.

4. Online Arbitrage: Selling Products Through Prep Centers

If you are exploring how to sell on Amazon without inventory, online arbitrage using prep centers is one of the most flexible and beginner-friendly strategies available. Online arbitrage is a reselling model where you purchase discounted products from various online retailers and sell them on Amazon at a higher price. 

This business model is ideal for solo entrepreneurs and remote sellers. Here’s how a typical online arbitrage workflow looks:

• You search for discounted products on sites like Walmart and Target.
• You ship the items to your prep center.
• Your prep center inspects and prepares them for Amazon FBA.
• Your prep center sends the inventory to Amazon warehouses.
• Amazon handles storage, shipping, and customer service.
• Your products are listed on Amazon and fulfilled through their network.

With this setup, you can focus on sourcing profitable deals, adjusting your listings, and scaling your operations. For a more detailed explanation, check out our guide on Amazon Online Arbitrage.

Amazon Policy for Online Arbitrage

Online arbitrage is permitted on Amazon, but there are compliance requirements to keep in mind:

• Invoice Documentation: Amazon may request receipts or invoices to verify product authenticity. Since retail receipts are sometimes rejected, keeping detailed and organized records is essential.
• Brand Restrictions: Some brands are gated or restricted. Avoid purchasing items from brands known for intellectual property (IP) complaints as much as possible.
• Condition Accuracy: Only list products as “new” if they are sealed, unused, and in perfect retail condition.

Pros & Cons of Online Arbitrage

Here is an overview of the advantages and disadvantages of using online arbitrage as your strategy for selling on Amazon without inventory.

Pros:

• No need to have your own warehouse to store inventory.
• High-profit potential when taking advantage of limited-time deals.

Cons:

• Research can be time-consuming and is constantly changing.
• Price fluctuations and competition can quickly reduce profit margins.

Expert Tips for Online Arbitrage

Success in online arbitrage relies on effective product sourcing, dependable prep centers, and careful inventory management. These expert tips will help you streamline operations and maintain healthy profit margins while selling on Amazon without inventory.

• Choose Reputable Prep Centers: Select prep centers known for their accuracy, timeliness, and effective communication. This will help minimize errors and delays in your inventory processing.
• Automate Inventory Tracking: Utilize inventory management tools that integrate with your Amazon Seller account and prep center. This will allow you to stay updated on real-time stock levels, shipments, and sales.
• Inspect Supplier and Product Quality: Since you never physically handle the product, thoroughly vet suppliers and review product quality before purchase to reduce Amazon returns and negative feedback.
• Negotiate Prep Fees: As your sales volume increases, negotiate bulk or subscription rates with prep centers. Lowering these costs can significantly enhance your profit margins.

If you are looking for an innovative and scalable way to sell on Amazon without inventory, this approach lets you focus on sourcing, pricing, and growth.

Staying Competitive Without Inventory

Selling on Amazon without inventory comes with unique challenges, especially when maintaining competitive pricing and winning the Buy Box. Here are some strategies to help you stay ahead of the competition:

• Automate Pricing: Use AI-driven Amazon repricers to adjust your prices in real-time based on current market conditions.
• Optimize Listings: Make sure your product titles, descriptions, and images are fully optimized for search engines and conversions.
• Monitor Performance Metrics: Regularly track key performance indicators, such as your order defect rate and customer feedback, to ensure your Amazon seller account remains healthy.
• Scrutinize Product Quality: Evaluate product quality thoroughly, especially for online purchases where physical inspection is not possible. If uncertain, consider ordering a sample first to confirm quality and authenticity.

Mastering How to Sell on Amazon Without Inventory

Learning how to sell on Amazon without inventory unlocks a world of opportunity for aspiring entrepreneurs and experienced sellers alike. Options like dropshipping, print-on-demand, Amazon wholesale, Amazon Kindle Direct Publishing, selling  digital art, and other fulfillment models all share a common benefit: you do not need to invest in physical stock to establish a successful Amazon business.

Each method has its advantages and disadvantages, as well as compliance requirements. Success relies on selecting the appropriate model for your objectives and executing it effectively. Tools such as AI repricers, keyword software, and inventory systems can enhance your competitiveness.