How to Sell on Amazon Without Inventory [Ultimate Guide for Physical and Digital Products]

Interested to know how to make money on Amazon without physical products? We’re here to help! Fortunately, there are many options available to entrepreneurs looking to make money on Amazon without holding inventory. In this guide, we'll explore:

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• The benefits of selling on Amazon without a physical product.
• 7 ways how to make money on Amazon without selling physical products.  

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Ready to become a successful Amazon seller? Here we go!

The Benefits of Selling Digital Physical Products on Amazon Without Holding Inventory 

Here are the key advantages of selling on Amazon without physical inventory. 

Simplified Process

It’s ideal to sell on Amazon without inventory as this eliminates the need for manufacturing, packaging, and shipping. This streamlines the process and allows for a faster start-up, without the overhead costs associated with physical products.

Higher Profit Margin

You don’t only make money by selling physical products on Amazon. Think about it. With no overhead costs, sellers can focus on optimizing their listings and visibility, which can lead to higher sales and profits. 

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This is especially beneficial for sellers with limited resources or those looking for a side hustle.

Diverse Product Options

Sellers can offer a variety of products and services, including digital products, dropshipping, and various services such as web design and social media marketing. This allows for more flexibility and the ability to pivot and expand the business as needed.

No Need for a Warehouse or Inventory

Selling on Amazon without a physical product means that there is no need for a warehouse or inventory. This not only saves on costs but also frees up time and resources that can be used to improve and grow the business.

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7 Ways to Make Money on Amazon Without Selling Physical Products 

To sell on Amazon without managing physical products, merchants can employ any of these strategies. 

1. Supliful 

Want to know how to sell on Amazon without a product? Supliful is an excellent place to start for reliable quick private-label supplement development and order fulfillment. 

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We work with dietary supplement entrepreneurs to help create, manage, and grow their private-label supplement inventory and orders. By integrating Supliful and Amazon, here's how we work:

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1. Entrepreneurs can connect with Supliful by visiting our websites and contacting us for a custom quote. 
2. We provide a tailored fulfillment strategy for you based on your requirements, including packing, storage, shipping, and even product returns. 
3. You get weekly inventory and order fulfillment reports to reflect your stock levels and help you forecast your earnings. 

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Moreover, Supliful operates on a pay-as-you-go pricing model, which means we charge for the actual services used and you do not have to pay a flat fee! 

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What’s more, we handle all the aspects of order fulfillment, from Supliful and Amazon integration to driving customer satisfaction. 

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Pros and Cons of Supliful Order Fulfillment Service

Here are the key advantages and potential challenges to prepare for when generating sales through Supliful Order Fulfillment Service:

Pros

• Easy to Start: Registering for Supliful's services is straightforward. After a simple application process and approval, you can swiftly integrate it with your Amazon account. 
• Time and Resource Efficiency: With Supliful handling order fulfillment, entrepreneurs can channel their time and resources into other aspects of their business, like product development and marketing.
• No Upfront Cost: Supliful does not impose any upfront costs on its services.

Cons

• Supliful Works With Only Supplement Merchants: Supliful only specializes in helping private-label supplement sellers boost their profits and optimize order fulfillment. Unfortunately, other businesses cannot benefit from these services. 

2. Amazon Merch

Amazon Merch is a platform that allows artists to create and sell their own merchandise, including customized t-shirts, hoodies, phone cases, throw pillows, and tote bags with their own logos or designs. 

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Amazon handles the printing, shipping, and marketing for the artists, and customers purchase the products directly from the artists' pages.

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One of the benefits of Amazon Merch is that artists can sell items they have already sold through other channels, such as Etsy or eBay. 

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Additionally, Amazon Merch is free to join and has no monthly fees. Artists receive royalties on their sales, and Amazon takes care of everything else. Read our guide on how to sell Amazon products on Facebook marketplace to maximize your revenue streams. 

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Pros and Cons of Selling on Amazon Merch

Thinking of selling on Amazon merch? Here are a few pros and cons to consider. 

Pros

1. Access to a vast customer base: Amazon has a massive customer base, so when you sell your designs on Amazon Merch, you have the potential to reach millions of potential customers worldwide.
2. No inventory costs: With Amazon Merch, you don't have to worry about inventory or warehousing costs. Amazon prints and ships your products for you, which means you can focus on designing and marketing your products.
3. Low barriers to entry: Amazon Merch is a relatively easy and cost-effective way for artists and designers to start selling their designs. There are no upfront costs, and the sign-up process is straightforward.

Cons

1. Limited product selection: Amazon Merch only allows you to sell certain types of products, such as t-shirts, hoodies, and phone cases. You also have limited control over the quality and selection of the products you sell.
2. Limited design control: While Amazon Merch allows you to upload your designs, you don't have complete control over how they are printed or displayed. This can be frustrating for designers who want more control over the final product.
3. Risk of account suspension: Amazon has strict rules regarding copyright and trademark infringement. If your designs violate these rules, your account may be suspended, and you may be banned from selling on Amazon Merch.

3. Amazon Home Service 

Amazon Home Services is an online platform that connects customers with local professionals for home-related services. Here's how it works:

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• Customers can easily find local professionals by entering their zip code or city and selecting the service they need on amazon.com/home-services. 
• They will be presented with a list of verified professionals rated by customers through the Amazon Marketplace feedback system.
• Once the customer selects a professional, they can schedule the service and pay for it through Amazon's platform.

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In addition, Amazon Home Services doesn't charge a flat fee; instead, it collects a commission from each transaction, typically ranging from 15-20% of the service price.

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To use this strategy and make money on Amazon without physical products, you must register for a free account and meet certain qualifications such as insurance and certifications. And then, choose the category that best suits your services and list them on the platform.

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Pros and Cons of Amazon Home Services

Here are key advantages and setbacks to prepare for before generating sales through Amazon Home Services:

Pros

• Easy setup process: You can start selling your services on Amazon Home Services quickly after filling out an application and waiting for approval.
• High-profit margins: Since there are no inventory or other overhead costs, the profit margins are high for home service professionals.
• No upfront expenses: There are no upfront expenses associated with the Amazon Home Services program.

Cons

• Commission-based earnings: Professionals are limited by Amazon's pricing policies and lack flexibility when it comes to pricing their services.
• Limited pricing flexibility: As a seller on Amazon Home Services, you're locked into a commission rate that doesn't consider the value you bring to customers or the time it takes to complete orders.

4. Amazon Kindles

Another way to make money on Amazon without physical products is by selling Amazon Kindles. If you're an aspiring author looking to self-publish your eBook, Amazon KDP is one of the best platforms to do so. 

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It's simple, free, and offers a vast market to sell your work. Here are the steps to publishing your eBook on Amazon through KDP:

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1. Set up your account on Amazon KDP.
2. Once the account is created, you'll be taken to the 'Bookshelf' page.
3. Click on the 'Create New' button on Bookshelf.
4. Fill in the book-related information, including language, title, author, contributors, publishing rights, category, age, and grade range.
5. Upload your book content in Adobe PDF, zipped HTML Word, ePub, Mobipocket file, or Plain Text format, and your book cover in JPEG or PNG.
6. Move to the Pricing, Royalty & Distribution section and choose the royalty plan.
7. Once you've set the price and selected the royalty plan, agree to the T&C of Amazon and click the 'Save and Publish' button to enter your eBook in the queue for approval.

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Pros and Cons of Selling on Amazon Kindles

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If you're thinking of publishing your book on Amazon Kindle, here are some pros and cons to consider:

Pros

• Multiple Platforms: Amazon KDP allows you to sell your book on various channels, not just Amazon, giving you more exposure and sales potential.
• Publisher and Retailer Combined: Amazon handles all payment processing, order fulfillment, and customer service for you, making the publishing process stress-free.
• No Upfront Costs: Publishing your book with KDP is completely free, and you can publish as many books as you want without incurring any expenses.

Cons

• Limited Promotions: Unlike traditional publishers, KDP doesn't offer pre-publishing promotion and press strategies, so you're on your own when it comes to marketing your book.
• High Competition: With countless established and aspiring writers, KDP can be a highly competitive marketplace, making it harder to stand out and get noticed by readers.

5. TuneCore

TuneCore is an AmazonMusic-owned platform that offers audio content publishing and distribution services. TuneCore makes it possible for you to make your audio content available to worldwide consumers via over 150 streaming stores, including Google Play, iTunes, and Spotify.

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TuneCore's prices for distribution of an album or an EP start at $29.99 and for a single, $9.99, which are reasonable compared to other distribution companies and record labels. To get started on this platform, follow these steps:

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1. Sign up for a TuneCore account to start selling your audio content on Amazon.
2. Choose your release type, either an album or a single.
3. Upload your corresponding audio content and cover art.
4. Mention the contributors' names to give them credit when an audio file is sold.
5. Get your music approved by TuneCore, which typically takes about 24 hours.
6. Start selling!

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Pros and Cons of Selling on TuneCore

Here are the top pros and cons of TuneCore to consider before selling.

Pros

• Extensive Audience Reach: TuneCore partners with over 150 popular digital audio stores, allowing you to reach audiences worldwide.
• You Keep 100% Royalties: When you upload your music or other audio content on TuneCore, you are entitled to 100% royalties. 
• Customizable Distribution Options: TuneCore provides customizable distribution options, allowing you to choose the specific streaming platforms you want to distribute your audio content on, giving you more control over your content's reach and revenue.

Cons

• Annual Subscription Fees: Some pricing plans require an annual subscription fee, which may be a disadvantage to those on a tight budget.
• Limited Distribution for the Basic Plan: The basic plan of TuneCore has limited distribution options, and you have to pay additional fees to distribute your audio content to more platforms.

6. Dropshipping

Dropshipping is a business model that can help you become an Amazon seller without inventory. This model allows entrepreneurs to sell products without the need to hold inventory. 

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Instead, when a customer purchases an item, the dropshipper sends the order details to a supplier or manufacturer who then fulfills the order and ships it directly to the customer.

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So, if you’re wondering “how to become an Amazon seller without inventory”, dropshipping is the answer! To start, you'll need to find a product to sell on Amazon. Search for products on Amazon's website or by using tools to identify products with good dropshipping potential. 

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Once you've found a product, you'll need to identify a supplier or manufacturer who can fulfill orders for that product. The supplier will be responsible for shipping the product to the customer and handling any customer service issues related to that product.

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After selecting a supplier, you can create an Amazon seller account and list the product for sale on Amazon's website as if it were being sold directly from your own warehouse or storage facility. Here is an overview of Amazon’s dropshipping policy:

Pros and Cons of Amazon Dropshipping

Amazon dropshipping has several advantages that make it an attractive business model for online entrepreneurs. 

Pros

1. No Product Sourcing or Warehousing: Brands don’t have to spend time or money sourcing or warehousing products. You simply need to find a supplier with the right product portfolio and price point for a particular consumer base.
2. Low startup cost: The only aspect you will invest in is the promotion of your Amazon dropship store and listings. Your dropshipping partner (brand/manufacturer/supplier) will take care of the rest of the overheads.
3. Flexibility: Dropshipping allows you to test different products and niches without having to commit to a large inventory. This flexibility means you can adapt your business to changing market trends and customer demand.

Cons

1. You don’t own the inventory: If your supplier runs out of stock, you can't sell anything until they get more stock (unless you want to buy your own). It means that when demand increases and your products sell out quickly, you can't fulfill them until more inventory arrives.
2. Sellers can’t control the price: Since you don’t own the inventory and can only sell at whatever price your supplier sets, you have no control over what price your products sell at. And if your supplier decides to increase their prices for no reason or decrease their quality to make more profit, then you are stuck with those changes.

Bonus Tip: Read our guide on how to dropship on Amazon without money and start gaining Amazon sales today!

7. Amazon Fulfilled by Amazon (FBA)

With FBA, you ship your products to Amazon’s warehouse, and they take care of everything from storage to shipping. The advantage of Amazon FBA is that you don't have to handle the fulfillment process yourself. Your customers can easily place orders and have their products shipped directly from Amazon.

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Sellers don't have to worry about storing or managing your products. Amazon takes care of all aspects of the sale, including storage, processing, shipping, returns, and customer service. Selling on Amazon without physical products has never been easier! 

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In exchange for these services, Amazon charges a monthly fee and takes a percentage of each transaction. Read our guide on how to sell products through Amazon warehousing and maximize your profits! 

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Pros and Cons of Amazon FBA

Before investing in Amazon FBA, consider these primary advantages and disadvantages. 

Pros

• Amazon Has a Large Customer Base: Access to Amazon's vast customer base can greatly increase sales and visibility.
• Increased Efficiency: Fulfillment and shipping are handled by Amazon, saving time and resources for the seller. In addition, storage and order management are taken care of by Amazon, reducing the need for a physical storefront or warehouse.
• Credible Platform: Amazon is a globally-recognized brand that millions of shoppers trust.

Cons

• High Fees: The fees to use APA can be high, particularly for long-term storage, and may reduce your profits.
• Inconvenient Inventory Recovery: If Amazon loses or damages your products, it can be difficult and time-consuming to get compensation or reimbursement.

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Now that you know how to sell on Amazon without a physical product, let’s explore the rules and regulations merchants must consider. 

Rules and Regulations to Sell on Amazon Without Inventory 

Selling on Amazon without a physical product comes with its own set of rules and regulations that must be adhered to. These guidelines are put in place to ensure fair business practices and to protect both the sellers and customers. Here are some specific points to consider:

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• Tax Laws: Be aware of the tax laws in your jurisdiction and ensure you are properly registered and paying taxes as required.
• Labeling: Products must be labeled accurately and comply with all labeling regulations. Make sure to provide clear and concise product descriptions to avoid misleading customers.
• Advertising: All advertising must be truthful and not misleading. Do not make any false claims about your product or engage in any deceptive practices.
• Consumer Protection: You must comply with all consumer protection laws and regulations to ensure the safety of your customers.
• Intellectual Property: Do not infringe on any intellectual property rights, including trademarks, copyrights, and patents.
• Prohibited Products: Certain types of products, such as illegal drugs or weapons, are prohibited from being sold on Amazon without owning a physical product.

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By following these guidelines, you can sell on Amazon without a physical product while still adhering to ethical business practices and ensuring customer satisfaction.

Key Takeaways

To make money on Amazon without physical products, use these strategies: 

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1. Supliful 
2. Amazon Merch
3. Amazon Home Service
4. Amazon Kindles
5. TuneCore
6. Dropshipping
7. Amazon Fulfilled by Amazon

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In addition, the benefits of these strategies are:

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• A simplified selling and shipping process.
• Increased profit margins without the expense of managing and storing inventory.
• You can sell a diverse range of products.
• Merchants do not need to worry about warehousing and storage logistics. 

FAQs

Want to sell on Amazon without inventory? Consider these FAQs to get started!

Is it possible to sell on Amazon without a physical product?

Yes, it is possible to sell on Amazon without a physical product. There are various options available for entrepreneurs to make money on Amazon without the hassles of manufacturing, packaging, and shipping.

What are the benefits of selling on Amazon without a physical product?

The benefits of selling on Amazon without a physical product include a simplified process, higher profit margin, diverse product options, and no need for a warehouse or inventory.

What types of products can I sell without a physical product?

You can sell digital products, dropshipping, and various services such as web design and social media marketing without a physical product.

How do I create a successful Amazon business without a product?

To create a successful Amazon business without a product, you need to choose the right option for your business, optimize your listings and visibility, and provide excellent customer service.

Are there any downsides to selling on Amazon without a physical product?

Some downsides of selling on Amazon without a physical product include limited control over the final product and the risk of account suspension if you violate Amazon's rules regarding copyright and trademark infringement.

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Looking for More Wisdom?

If you are looking for other articles on Amazon then these articles are a must see:

1. https://supliful.com/blog/which-country-is-best-to-sell-private-label-products-on-amazon
2. https://supliful.com/blog/how-to-dropship-on-amazon-without-money-in-2023
3. https://supliful.com/blog/what-is-the-most-commonly-bought-item-on-amazon

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These posts will help you learn more about Amazon dropshipping so you can improve your skills.

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