Use These 4 Methods in Your Online Selling Business with no Inventory nor Shipping

There is a misconception that you have to manage physical goods with an Online Selling Business. This article will dispel the myth that your online store has to carry inventory costs. It is a lucrative way of doing business that allows you to manage your bottom line.

Let us begin discovering how to go about it.

1. Dropshipping

A dropship online store is one where customers buy from your website, but a vendor makes all the deliveries. In essence, you play the intermediary role between buyers and distributors. When the client visits your online site and places an order, you receive the money and place the order with the distributor. 

The goods go brandishing your company logo, so they appear to come from you.


  • You have no inventory or shipping functions
  • You bear substantially low startup costs since all you need is a website to begin taking orders.
  • You enjoy negligible risk


  • Your profit margins can be as low as 10% – 30%
  • Customer service might raise its ugly head because a third party controls the fulfillment
  • You must attract traffic to your website
  • Your advertising options shrink since the margins are small
  • You will lean heavily on free promotions and SEO
  • You will face pricing pressure since many other entrepreneurs are selling the same goods
  • If you use different drop ship vendors, customers may receive separate shipment parcels
  • You must connect to your vendors’ database to keep abreast with their inventories
  • Your store may take a lengthy period to earn significant profits

2. Amazon FBA (Fulfillment by Amazon)

Online sellers are taking up trading using Amazon FBA. It works quite efficiently and requires you to ship all your products to Amazon’s warehouses. You list them on Amazon’s marketplace so that buyers can place their orders on Amazon. Read more about Apps to integrate your online store with Shopify

All the storage, fulfillment and customer support functions, fall under Amazon. They take care of all your business activities, and you get access to more than 285 million active Amazon customers since 2016.


  • Once you transfer your goods to the warehouse, Amazon manages the sales, shipping, returns and customer support.
  • The Amazon marketplace is so vast that you will probably have additional sales


  • You must buy all your wares upfront so that you can ship them to the warehouse
  • You pay Amazon about 15% of your earnings and another 10-15% for fulfillment. That is a hefty 40% of total revenues.
  • Your profit margins must be high enough (above 68%) to make financial sense to continue doing business.
  • Goods go in Amazon packaging unless you pay an extra fee to have your brand on the parcels
  • You must follow Amazon’s rules
  • You receive payments monthly
  • Amazon can veto you, especially if you get many customer complaints
  • You must monitor your listings from the competition to ensure that they do not hijack or piggyback on your products
  • Amazon FBA makes it challenging to establish your brand

3. Rd Party Logistics - 3PL

A 3PL business will store your goods and cover fulfillment. They can assist with customer support, and, sometimes, product returns. You will transport your product to the 3PL for them to hold it in storage. When a buyer places the order on your website, an automatic order goes to the 3PL.

The 3PL will dispatch the order to the individual. Moreover, you pay a cost for the fulfillment, as well as a monthly fee to your vendor.


  • You have no inventory or shipping functions
  • You are 100% in control over your customer flow
  • Your profit margins are 50% or more
  • You can engage in advertising campaigns


  • You must buy your wares upfront
  • You must attract traffic to your website

4. Affiliate Programs by Promoting Other Products

Affiliate programs generate sales by pushing relevant goods to your visitors, hopefully, that they will love. Keep your eye on the ball, which is; always consider the needs of your profitable niche!

Investigate the promotions for affiliate products through an affiliate network such as Amazon Associates or CJ Affiliate. Make your item choices from physical goods and digital products. A quality program will pay you promptly, precisely what you have earned.

Place the affiliate links on your site, and your niche browsers will click on them if they find the content is helpful, and make their purchases.


  • Negligible startup and running costs
  • Once the affiliate link drives traffic to the vendor, the customers make their purchase
  • High passive income potential
  • The sales skills you learn will be transferable when you sell your products
  • The opportunities are enormous if you choose a low competition niche


  • It might be a long wait before your site is profitable
  • You must work at you content to trigger good traffic flow
  • The revenue from sales of physical goods is often as low as 5% t- 10%

Extra tips

Tip 1. 3PLs are especially useful when your products require special handling or preparation.

Tip 2. Amazon is 3PL and can fulfill orders from your website.

Tip 3. The Amazon platform is exceptionally competitive. You must allocate a lot of time monitoring your goods.

Tip 4. To run a successful online store, you must have a fascinating brand. Inventory and fulfillment are not necessary functions.

Tip 5. Ultimately, when you start your online store website, customers will carry on buying from their familiar shop. When you start online trading, your apex goal must be to create your own unique business. You can use Amazon FBA to generate awareness of your brand, and remember to pay the extra cost for your brand on the packaging.

Tip 6. You can use a plugin like WooCommerce (with functional integration with WordPress), and the link will take visitors to the vendor’s product page.

Final Thoughts

Consider working in a way that spends more creating income instead of trying to cut costs. When you start to sell products online platforms, you can concentrate on advertising and other marketing efforts. The fulfillment industry makes business easier for CEOs by taking up the large chunk of trading costs in inventory and shipping.