How to Launch an Amazon Business With Zero Inventory Headaches

Launch an Amazon Business

The concrete answer is this: you can launch an Amazon business without ever touching inventory by using Fulfillment by Amazon (FBA), third-party logistics (3PL) partners, or business models like dropshipping and print-on-demand. These approaches remove the need to rent warehouses, manage pallets, or handle customer returns yourself.

According to Amazon’s 2025 Small Business Report, more than 60% of U.S. product sales on Amazon now come from third-party sellers, and a large share of them use FBA or outsourced prep centers to avoid inventory bottlenecks. That means you don’t need a garage full of boxes to compete, you just need the right model, tools, and partners.

For entrepreneurs, this shift is critical. Traditionally, building a retail business meant investing heavily in stock, shipping supplies, and warehouse space. Today, Amazon’s infrastructure, combined with logistics providers and digital storefronts,lets you scale quickly with lower risk and overhead.

Why Inventory Management Is the Biggest Obstacle

Young entrepreneur in a warehouse using a tablet to track inventory, surrounded by boxes and packages
For small sellers, poor inventory planning means losing money through high storage fees and tied-up capital, which is why zero-inventory models are becoming more attractive|Artlist

Inventory is the number one challenge for small sellers. According to a 2024 Jungle Scout survey, 41% of Amazon sellers listed inventory management as their biggest pain point, followed by rising ad costs and competition. Holding physical stock ties up capital, increases the risk of unsold goods, and exposes sellers to storage fees if demand slows.

Amazon’s own fee structure makes mistakes expensive. As of 20the 25, monthly storage fees for standard-size it averages rage $0.87 per cubic foot, but long-term storage (over 365 days) costs $6.90 per cubic foot. Sellers with poor forecasting can watch their profits evaporate.

That’s why “zero inventory” models are so attractive: they allow you to focus on marketing, product research, and customer experience, while letting Amazon or a partner handle the heavy lifting.

Models That Eliminate Inventory Headaches

1. Fulfillment by Amazon (FBA)

Warehouse shelves filled with yellow-labeled packages ready for storage and shipping
Fulfillment by Amazon (FBA) gives sellers access to Prime customers and Amazon’s logistics network, but high storage and service fees mean you trade convenience for tighter profit margins

With FBA, you send your products directly from a supplier to an Amazon fulfillment center. Amazon then stores, picks, packs, ships, and handles returns.

  • Pros: Access to Prime customers, faster delivery, and Amazon’s customer trust.
  • Cons: Fees add up (fulfillment, storage, prep), reliance on Amazon’s rules.

2. Prep and Logistics Partners (3PL)

Many sellers use prep centers to receive, inspect, label, and forward inventory to Amazon. This is especially useful for wholesale or private label sellers who source products from overseas.

  • Pros: No need to see or touch stock; professionals handle compliance.
  • Cons: Extra per-unit cost ($0.50–$2.00), reliance on reliable partners.

3. Dropshipping

In dropshipping, you list a product, and when a customer buys it, the supplier ships it directly to the customer.

  • Pros: No upfront inventory, low financial risk, wide product testing.
  • Cons: Lower margins, less control over quality and shipping times.

4. Print-on-Demand (POD)

For products like t-shirts, mugs, or books, print-on-demand services produce items only after a customer places an order.

  • Pros: No inventory risk, creative flexibility, scalable for small niches.
  • Cons: Lower margins compared to bulk production, limited product categories.
Table: Amazon “Zero Inventory” Business Models Compared
Model How It Works Key Advantage Biggest Risk
FBA Supplier ships stock directly to Amazon warehouses Prime access + fastest scaling Storage and fulfillment fees
3PL Prep Centers Third-party handles inspection, labeling, and shipments Hands-free compliance and logistics Added per-unit costs
Dropshipping Supplier fulfills orders after each sale Lowest startup capital Limited control, risk of delays
Print-on-Demand Products are made only when ordered Zero stock risk, creative Narrow product range, lower profit margins

The Numbers That Prove It Works

Amazon package on a conveyor belt in a fulfillment center, surrounded by other boxes in motion
With 6.5 billion packages shipped through FBA in 2024 and over half of sellers profitable in their first year, the numbers prove that zero-inventory strategies are no longer optional, they’re the backbone of e-commerce

The zero-inventory approach isn’t just a theory, it’s the reality of how thousands of Amazon sellers operate successfully. The scale of Amazon’s logistics alone proves the point.

In 2024, Amazon fulfilled more than 6.5 billion packages globally through its FBA network, a staggering figure that demonstrates how deeply integrated fulfillment outsourcing has become. This isn’t just convenience; it’s infrastructure at a level that individual sellers could never match on their own.

Profitability numbers tell a similar story. According to a 2024 Jungle Scout survey, more than 57 percent of sellers who relied on FBA were profitable within their first year, while only 37 percent of those managing their own logistics reported the same.

The gap is significant,it shows that sellers who tap into Amazon’s logistics machine can focus on marketing and product selection rather than worrying about boxes and shipping labels. Adoption rates underline the point even further. Marketplace Pulse reported in 2024 that roughly two-thirds of Amazon sellers use FBA as part of their business strategy.

At the same time, alternative methods like dropshipping have carved out their own foothold, with around 23 percent of sellers using dropshipping for at least part of their catalog, according to EcomCrew.

These numbers make one thing clear: avoiding inventory headaches isn’t a niche tactic; it’s now the backbone of modern e-commerce.

Why Sellers Choose Zero Inventory in 2025

Amazon packages moving along a conveyor belt inside a fulfillment center
By 2025, rising warehouse rents, Prime-level delivery expectations, and overseas sourcing are pushing sellers toward zero-inventory strategies, with Amazon and tax-free prep centers handling the logistics

The rise of zero-inventory strategies in 2025 is driven by three undeniable forces: cost pressures, customer expectations, and global sourcing dynamics. First, the economics of warehousing have shifted dramatically.

Warehouse rents in the United States have increased by more than 15 percent since 2022, according to CBRE Research, which means storing your own stock has simply become too expensive for many small sellers. Outsourcing to Amazon or third-party logistics providers is often cheaper and far more efficient.

Second, consumer behavior is pushing sellers in this direction. Shoppers now expect fast, free shipping as the standard, and Amazon Prime has set the benchmark. For independent businesses, meeting those expectations without Amazon’s fulfillment network is nearly impossible. By using FBA, sellers can give customers the same two-day or next-day delivery without managing fleets of vans or regional warehouses themselves.

Finally, the structure of supply chains has changed. More sellers are sourcing products from overseas manufacturers in China, India, and Vietnam, and having those goods shipped directly to Amazon fulfillment centers or prep partners saves both time and money.

Cutting out extra handling reduces mistakes and speeds up the process from factory to customer. Many entrepreneurs also take advantage of a tax-free Amazon prep center, often located in states like Delaware, Oregon, or New Hampshire, to further reduce costs.

These facilities receive, inspect, and forward inventory without adding sales tax, which can translate into thousands of dollars in savings per year for scaling sellers.,

Conclusion

Launching an Amazon business doesn’t require filling your garage with boxes or becoming a part-time warehouse manager. By leaning on FBA, 3PL partners, dropshipping, or print-on-demand, you can sell products at scale without inventory nightmares.

The data is clear: more than 60% of U.S. Amazon sales come from third-party sellers, and most of them succeed by avoiding traditional inventory burdens. According to Marketplace Pulse, sellers who outsource fulfillment scale faster and face fewer operational roadblocks than those trying to handle everything in-house.

If your goal is to start lean, reduce risk, and focus on growing your brand instead of managing pallets, zero-inventory models are the proven way forward.

Read Also: Jeff Bezos Earnings