How to Sell on Amazon without Buying Product

There are so many opportunities to make money on Amazon that the prospects can seem daunting at first. They can also seem impossible to some people because of the general idea of how Amazon works: you have an established e-commerce business with products in your inventory that you sell on the platform. However, the big misconception here is that this is not the only way in which Amazon works.

Are we saying that you can sell on Amazon without an established e-commerce business, in-house inventory, or having to buy product? Yes, you can! There are ways to sell on Amazon without buying product or having any in-house stock.

In this article, we will be shedding light on the 2 main ways to go about this, the pros and cons of each method, and all the information you need to understand which of the 2 options will help you optimize you achieve your e-commerce and financial goals best. So here’s how to sell on Amazon without buying product.

1. Dropshipping.

Dropshipping is an FBM (fulfilment by merchant) business model whereby order fulfilment is facilitated without having the products for sale in stock. Rather product purchases are made from a third party on an “as needed” basis to fulfil customer orders. This third party could be a manufacturer, wholesaler, or retailer, depending on who the dropshipper can enter into a business agreement with.

In essence, dropshipping affords you the convenience of fulfilling customer orders when you don’t own or carry the product. If your business sells products using this model, you purchase the item directly from the supplier when an order has been placed and have it shipped directly to the customer. 

As the dropshipper/seller, you neither have to purchase bulk products, own the inventory, or have products stored away. You only have to purchase the product as needed to fulfil customer orders. On Amazon, you are allowed to dropship products as long as certain criteria are met regarding the terms of the seller agreement. This is how to sell on Amazon without buying product.

Some important things to note are that on any packaging or invoices that are sent to customers, your name or business name must always be written as the seller of record for the products. Thus, all third-party seller or supplier information must be removed before the order is fulfilled. In addition, as the dropshipper, the responsibility of processing any returns falls on you. 

Pros and Cons of Dropshipping.

The Pros of Dropshipping.

Dropshipping as a way to sell on Amazon without buying product offers several benefits. These include:

1. Lower Overhead Costs: By order fulfilment through dropshipping, you can maintain very low overhead costs since you will not be storing or shipping the products. 

2. Low Starting Costs: Starting costs for dropshipping are always very low as you do not need to invest in facilities or buy product before selling. 

3. Multiple Sales Channels: With dropshipping, you can sell products through multiple sales channels such as Amazon, an e-commerce website, or social media. This enables you to better reach your customer base.

4. Full Remote Operations: As all transactions and logistics are handled online, dropshipping allows you the convenience of full remote operations. You can operate your business from virtually anywhere. This gives you the flexibility and scalability to build a business at your own pace.

The Cons of Dropshipping.

While there are several benefits of dropshipping, there are equally a few downsides. These include:

1. High Competition: Because dropshipping is a low-cost investment, it has become a popular option for many sellers looking to enter the e-commerce space. This high competition has made it more difficult to source products. Competition may also force you to lower prices to gain market ground. It can also make it difficult for your business to stand out from other sellers dropshipping the same products as you.

2. Unpredictable Fulfilment Timelines: When you dropship, you have zero control over the order fulfilment timelines. So you cannot give your customers a 100% guarantee as to when their orders will be selected, packaged, or shipped. All of these are in the hands of your supplier.

3. Slow Inventory Updates: As a dropshipper, you may not always have real-time updates from your supplier on available stock. This can easily lead to customer disappointment if your products are consistently out-of-stock.

2. eBooks.

Can you sell ebooks on Amazon? The answer is yes, and Amazon has created a special way to do this. With Amazon Kindle Direct Publishing (KDP), you can self-publish ebooks for free and reach millions of readers on Amazon! This is also how to sell on Amazon without buying product because an ebook is a digital product so you don’t need physical fulfilment. You also do not need to use your real name or even be a great writer.

So wondering how to sell ebooks on Amazon to make good passive income? Here’s how.

How to Make Money Selling eBooks on Amazon.

1. Open a KDP account: It is completely free to sign up.

2. Find a good niche: Carry out some research on Amazon to find categories with books that are ranking as bestsellers. These categories will make good niches for creating good income.

3. Select a good title: A good title will rank for keywords searched on Amazon, be super compelling, and won’t mislead people.

4. Get a professional ebook cover: Hire a professional graphic designer to create an equally compelling cover for your ebook.

5. Make sure your ebook is well-written: It doesn’t have to be a super long novel—although you can opt for that if that’s where your talents take you. Shorter books are also great. But make sure the ebook is at least 15 pages long and is full of amazing information people will love to read.

6. Give your book a description that sells: After your title and book cover, your book description is what will finally convince a reader to buy your ebook or pass on it. Therefore, make your ebook description one that will draw them in, no questions asked.

7. Try selling your ebook for free: This is a great market penetration technique. Starting out with a price of £0 can help you capture a wider audience, market your books to groups and sites devoted to free ebooks, and gain more exposure than if you started out with a selling price. You can also gather many positive reviews of your book quickly while everyone’s flocking to download it for free. After your first 10 or so reviews, you can then increase your price.

8. Market your ebook: Facebook groups and blogs dedicated to your niche are a great place to start.

Pros and Cons of eBooks.

The Pros of Selling eBooks.

The benefits of selling ebooks on Amazon KDP include:

1. Access to An Enormous Market: Publishing ebooks on Amazon allows you to reach millions of readers looking for a great book.

2. Ease: Whether you are new or experienced, Amazon KDP makes self-publishing easy. You are provided with detailed documentation, how-to videos, FAQs, forums, and a help centre to ease and smoothen the entire process for you.

3. Reliable payment: Amazon gives reliable monthly payments to authors and ebook sellers on the platform.

The Cons of Selling eBooks.

Here are a few demerits:

1. No in-built marketing strategy: You have to market your products outside of Amazon to get readers to buy them from Amazon.

2. Payment terms: Authors and sellers are paid monthly, but the 60-day window from earning your money to receiving it is a notable downside. For example, if you make $1000 in July, you will not receive that money until August.

Conclusion

In conclusion, selling on Amazon without buying product is a viable option for anyone looking to make money on the platform. Two main methods have been discussed in this article: dropshipping and selling ebooks through Amazon KDP. Both methods have their pros and cons, and it is up to the seller to decide which one best suits their business and financial goals. Dropshipping offers low overhead costs and the convenience of remote operations, while selling ebooks on Amazon KDP allows access to a massive market with ease of use. Whichever option is chosen, it is important to do proper research, create compelling titles and descriptions, and market the products to reach the right audience. With dedication and effort, anyone can succeed in selling on Amazon without buying product.