2 Ways How To Sell Products OnLine Without Inventory

Do you want to know how to sell products online without inventory?  When people want to start a business from home online they automatically think of buying something cheap and then selling it for a higher price.

Well, there are two ways where you can still do the same business but this time with no inventory at all.  Let me show you how to sell products online without inventory. The three benefits of this type of business helps you because you:

  1. No need to  have to buy in bulk and have room to hold your inventory
  2. Do not have to worry about packing and shipping the products
  3. No hiring of staff to help you out with your inventory

Let me show you two ways on how to sell products online without inventory.

1.Dropshipping Saves You Time and Money

Dropshipping is a where you trade but you do not keep products in stock and instead you partner with a wholesaler who does hold the stock.  All you do is to transfer orders and customers orders directly to them and they in turn ship out the good directly to the customer.

Image result for dropshipper steps

Here is a list of companies that do this:

The above companies are made up of huge number of different wholesale suppliers.  For example, SaleHOO has over 8000 companies and over 1.6 million products.  You can find everything from them.

There is a joining fee that you have to pay and this is normally an annual fee.  The good thing is all suppliers has been verified so you don’t have to worry if they are legitimate.

How To Start Dropshipping

Choose the products that you are interested in marketing from one of the above sites

The products are listed via each supplier for you to choose from

You can see the current inventory and pricing for each item

Customers will then come to your website or blog

The order has been placed and the supplier will send the product to the customer with your details such as your logo or branding.  The customer will think that you have sent them the product.


  • The dropshipping websites are easy to move around for products and supplier listings
  • You don’t have to carry the product
  • All the distribution is fulfilled by the supplier
  • Very low risk from your side
  • All packaging and postage costs are taken care of by the supplier
  • Prices are generally around 15% to 25% of the retail price


  • Membership is not cheap with some companies and can be as high as $370 per annum
  • Customer service varies between companies and so stick to the top 2 in my opinion – SaleHoo and Shopify
  • You will have to have a blog in order to generate traffic to your site
  • Margins are low but you have no other manufacturing costs
  • One thing I have found if you are using more than one different supplier on your site is that the same customer orders multiple products, they will receive multiple shipments from your various suppliers
  • You have to manage and check stock inventory each week by logging in to the suppliers database – shortage of an item can be a problem
  • If a supplier gets the order wrong then the customer will be knocking your door to get the issue resolved
  • You might find the product that you are selling cheaper online such as eBay

I must stress that dropshipping is a great way to start a business with little overheads but you are putting a lot of your credibility and reputation in to the hands of the dropshipper.

For some people this is a small issue and so this might very well be a great way to start a business.  See Post – How to Start a Blog.

2.Use Amazon FBA

Another way on how to sell products online without inventory is through Amazon who have created a network of suppliers and if you have not already realised when  you purchase something from Amazon, there is a very good chance you are buying from a third party seller using a service called Amazon FBA.

Fulfilment by Amazon – FBA.  Look at the below image and you will see that this is sold by XXXXXX and Fulfilled by Amazon.



How Does Amazon FBA Work

Well quite simply, you buy your goods/stock and then you send them to Amazon’s warehouse.  You can even source your goods from Alibaba and they can in turn can send them directly to Amazon for you.

You then list the goods on Amazon marketplace and let customers buy your products.  No need for you to have a blog or website.  The good thing is that like Dropshipping, Amazon will then fulfill your order to the customer.

The below item is sold by EBL and Fulfilled by Amazon.




  • The customer has the satisfaction of Amazon’s brand
  • There is no need to have a website or blog to attract customers
  • Prime customers can benefit by ordering your products
  • Amazon will handle customer returns – a great advantage
  • It is a scalable business


  • Amazon do take a big chunk of the margin and so you need to source your goods well
  • Always keep an eye on the competition as this will affect your business
  • Amazon charge to store items in their warehouse
  • You have to keep track of your inventory stock
  • Stale inventory – items that are not selling
  • Low volume and low margin products do not make profit on Amazon FBA
  • You must ensure that your margins are high
  • You have to invest capital upfront in this business
  • Amazon only pay you once a month

Amazon FBA is a great way to start up a business but you will need capital.  However, most of the heavy lifting is done by Amazon and they take care of everything from the moment the product arrives at their warehouse.

My Suggestions To You

The dropshipping sounds on the face of it a great idea and especially that you do not have any upfront investment or capital outlay.  In this day and age, dropshipping is becoming more and more competitive and you will find that once you have a product niche in the market to sell, a short while later there may be a competitor selling it cheaper ie another dropshipper.

In addition, in order to generate traffic, you will need to invest time in a blog.  This is not an overnight process and I have dedicated a whole section on How To Blog.

My recommendation for anyone wanting to start a business from home is the Amazon FBA. The key here is to source your products well and then use Amazon to do the fulfillment.  You goal is generate cash flow and build a business for yourself.

How to sell products online without inventory is very much possible for you.  Take the step to start now.

Good Luck.

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