How to Sell on Amazon Without Inventory

Amazon sellers can launch inventory‑free businesses using four models—dropshipping, Merch by Amazon, Kindle Direct Publishing, and digital products—each requiring no upfront stock and offering margins of 10‑30% for dropshipping and 20‑40% royalties for print‑on‑demand. Examples include a $55 earbud sale yielding $17 profit and a $24 tee delivering a $10 royalty.

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Overview

Amazon sellers can start a business without purchasing any physical inventory by using four distinct, inventory‑free models: dropshipping, Amazon’s print‑on‑demand service (Merch by Amazon), Kindle Direct Publishing, and the sale of digital assets. These approaches remove the need for large upfront capital, eliminate storage costs, and still give access to Amazon’s massive shopper base. Understanding how each model operates is essential for entrepreneurs who want to launch quickly with limited funds.

Key Points

Four inventory‑free models — The options cover physical goods through dropshipping, apparel and accessories via Merch by Amazon, books through Kindle Direct Publishing, and a range of digital products such as software or templates.
No upfront stock purchase — Sellers pay suppliers, printing partners, or Amazon only after a customer has placed an order, which prevents the cash‑flow strain of bulk buying.
Fulfillment handled by Amazon or the supplier — For print‑on‑demand and KDP, Amazon prints, packs, and ships the item; for dropshipping, the third‑party supplier ships directly using the seller’s Amazon shipping label.
Margin differences by channel — Dropshipping typically yields 10‑30 % profit after supplier costs, while print‑on‑demand can generate 20‑40 % depending on the royalty structure and design pricing.
Strict compliance required — Amazon’s policies forbid certain dropshipping practices, demand accurate product listings, and require that print‑on‑demand designs respect trademark and copyright rules.