Imagine starting your business in 2024 without spending a dollar or managing an inventory. Capital investment is a hurdle for many who want to sell products online because you need a substantial amount to buy your inventory and sell online.
But what if you can start an online store without inventory? Sounds too good to be true? Think again.
The digital ecommerce industry has opened up possibilities for aspiring online store owners, even those without or have a limited budget.
At ZIK Analytics, we have spent years researching products and various online business models. We specialize in data analytics on eBay and the ecommerce industry, allowing us to gain unparalleled industry insights.
Therefore, I will share with you in this comprehensive guide the strategies and tips you need to start an online store without inventory.
If you are looking for a sign to start selling online but are hesitant because you have no capital, take this as a sign! Keep reading to learn the proven formula to succeed in selling products online without inventory management.
Article Overview:
Key Takeaways
Why Choose Dropshipping eCommerce Business Model?
Guide to Start an Online Store without Inventory in 2024
Long-Term Strategy
Final Thoughts
FAQs
Key Takeaways
- Dropshipping is a formidable business model for selling online without inventory.
- Carefully vet the various e-commerce platforms and digital marketplaces, which can be critical to your online business success.
- Invest in a product research tool, like ZIK Analytics, to obtain industry insights and relevant sales data when choosing the best products for your store.
Why Choose Dropshipping eCommerce Business Model?
The dropshipping business model is ideal to sell online without inventory. That said, it makes the perfect choice for anyone wanting to make money from the eBay ecommerce platform without initial investment.
Yes, you can start a dropshipping business with zero dollars. Yes, you heard that right. Zero investment.
Check out this recent video we released on our YouTube Channel detailing exactly this!
If you’re on a tight budget or don’t have enough capital to build your own online store, dropshipping is the way to go! With the right products, you can make a steady stream of sustainable income with this business model.
Of course, investing is possible if you have those set aside to launch your online store. But if not, it is accessible to anyone, and you can reinvest any profits you generate from selling online to grow and scale your online business.
But here is what you need to know before starting the dropshipping business model: use it as a launchpad, not your final destination.
It is an opportunity to test the waters before exploring other ecommerce businesses or business models. It is a risk-free approach to start selling online and learn the ropes.
In this guide, I will show you the steps to succeed with an online store without inventory focusing on dropshipping on the eBay platform – which is where ZIK got our start! Also, you will discover what tools can empower your ecommerce businesses to grow and become your main income source.
Guide to Start an Online Store without Inventory in 2024
Follow the steps I will outline here on how to start an online store without inventory. Let’s go over the steps!
Step 1: Choose the Dropshipping Platform
Once you start your dropshipping journey, the most crucial decision you will make is choosing the dropshipping platform. Many factors play into your decision, such as ease of use, integration capabilities, and market reach.
If you are new to selling online, having a user-friendly interface and prompt issue resolution will be vital factors in choosing a digital marketplace.
Dropshipping with Amazon allows you to leverage its vast customer base. You can also streamline your ecommerce businesses using Amazon’s fulfillment services, giving added credibility and ease in managing your online store.
Shopify is another popular ecommerce platform for the dropshipping business model. A Shopify store is a great option for online business owners who want to customize their online stores and have more control over branding.
However, it’s not ideal for starters because you need extensive marketing skills and budget to increase visibility for your dropshipping store.
eBay is the most popular option for dropshipping and online businesses without managing physical inventory. It is the platform that I personally recommend because I’ve had the most success on this platform, especially with the use of a market research tool like ZIK Analytics.
While it is highly competitive with many other eBay dropshippers, you can tap into its massive active user database. The various product listings offer flexibility in how you sell online, whether you want to actively or passively manage your online store.
Weigh the pros and cons I mentioned here to help you pick the right dropshipping platform. Your choice can make or break your ecommerce business success.
Step 2: Set Up Your Dropshipping Account
If you choose eBay as your dropshipping platform, you must create an eBay account to sell products online. Creating an eBay account takes only a few steps.
Go to the eBay homepage and sign up for a free account. Choose a store name and make it memorable but relevant to your niche.
You must also provide a business description, which gives an overview of what products you will sell online and highlights a point of differentiation from other eBay sellers and dropshippers.
And don’t forget to add a profile image! It adds to your store’s credibility, making it easier to earn customer trust.
You can check out our comprehensive guide to setting up an eBay store here.
Step 3: Choose Your Dropshipping Products
This is where the fun part of selling online without your own inventory is, but it is also the most challenging. Choosing what products to sell online is critical for ecommerce businesses because you want to target high demand products that your potential buyers will want to buy!
I use various market research tools to obtain industry data and insights that help identify the winning products for my ecommerce business. Therefore, I strongly suggest you find a tool to arm your decisions.
But before I get ahead, let’s identify what constitutes a winning product. How do you know if a product is good to sell in your ecommerce store?
The most important quality of a winning product is high demand. This product must have at least two sales in the last seven days. It means that when a customer purchases a product, there is a demand for it.
Selling products with substantial demand also benefits your online store because it guarantees you can generate a passive income.
However, consider seasonal trends that could affect sales performance and evaluation of products when selling online. Always check a product’s sales history when validating the potential of products in any ecommerce platform.
The next factor in finding winning products to sell online is pricing. Aim for products with competitive pricing. Choosing the cheapest products for your ecommerce business is not always the wisest move.
However, you must refrain from selling products that are overpriced either.
When you start an online store, the best products would be those that balance demand and competitive pricing.
With these factors, you can make passive income without inventory or your own products.
If you are looking for a list of items to add to your store this year, we have updated our “what to sell on eBay” guide to be relevant to 2024
Step 4: Market and Product Research
Success with ecommerce businesses without inventory management is possible. However, you must conduct market research to obtain essential data and sales history to help you decide which products to sell online.
As I mentioned earlier, choosing your dropshipping products is critical to a successful online store. With ZIK Analytics, the data and analytics you need to find trending products or niches and analyze your competition are within easy access.
This market research tool proves invaluable if you want to stay ahead of the competition and excel in the dropshipping game.
To use ZIK Analytics, you must update the seller settings to match your ecommerce platforms and your market (such as eBay US or UK). This step is crucial when researching the top selling products online because you want the data to reflect the intended market or audience base.
For example, if you are dropshipping in the US, use the eBay US setting on ZIK Analytics. It will provide you with relevant sales data and information about the eBay US market, giving you valuable industry insights with just a few clicks.
And since there are many ecommerce platforms, such as Amazon and Shopify, you must update the settings for eBay (if you are dropshipping on eBay) to reflect the data you want to see!
There are various strategies for using the data from ZIK Analytics for your ecommerce businesses to make more sales without inventory. First, you must look for “traffic products.”
The so-called traffic products are any top selling products priced at $15 and below. At this lower price point, these products are easier to sell online, enabling you to get your sales record to grow in a short period.
The more sales you generate over a short period, the more it will positively affect eBay’s algorithm. EBay’s algorithm prefers products that do well in sales, so the listing will appear on search results for a relevant query.
Once you get on the ZIK Analytics dashboard, you will find a list of trending eBay products that are already available. These trending products have high demand and high sales performance.
Before listing any of these items in your dropshipping ecommerce store, you can research that product further to obtain more insights about its sales history and other pertinent information.
Another nifty feature I use on ZIK Analytics is sourcing potential suppliers. You can check out similar products on supplier websites like Aliexpress when you scan a product or niche.
You can check out how much those products are listed on Aliexpress and other supplier websites, which will give you an idea of your potential profit margin if you add these top-selling products to your store.
One thing to remember: Traffic products are an excellent addition to your e-commerce business, not because they can give you massive profits but because they sell fast and will boost your seller rating.
Long-Term Strategy
The marketing tips provided here are to help you launch your dropshipping business and start an online store without inventory. Once you start gaining sales in your store, consider reinvesting those profits to scale your business.
Once you have enough capital, you can focus on finding more profitable items. Let’s say you can aim for products that range in price from $20 to $50.
With these winning products, you don’t have to aim for more sales because you can rake in a higher profit margin per sale.
The ZIK Analytics market research tool would be an invaluable partner in growing your business, from not having your own inventory to building successful ecommerce businesses with huge profits!
Leverage the advanced product research tools to perform competitor analysis and tweak your own ecommerce strategy.
Final Thoughts
Starting and growing an ecommerce business without inventory requires adaptability, persistence, and a willingness to learn. Using these strategies, you can watch your ecommerce business grow and generate a passive income, even without initial investment or inventory management at the beginning!
FAQs
How many items should you start an online store with?
It depends on your niche and your target audience. However, as a starting online business, keeping your product offerings varied but manageable is important.
The best option would be to offer 10-20 products and gradually add more items as you start making sales.
How do I start a business with no inventory?
A dropshipping business model is ideal for starting an online store without inventory. You must find a supplier to ship the items once a customer orders on your online store.
Other examples of ecommerce businesses without inventory are affiliate marketing, print on demand stores, and social media marketing.
How do you market a product without it?
You must leverage social proof to reassure potential buyers that other customers have had a positive experience using that same product. Addressing the customer’s pain points and offering the product as a potential solution is also important.
Lastly, focus on your branding. Selling to your customers would be easier if they trust your brand and know you have a good reputation.
