My blog focuses on Financial Literacy/Money, Business/Entrepreneurship and Technology. Much business is conducted today online. In many instances you don’t need inventory in the traditional sense. The following contributed post is entitled, How to Start An Online Store Without Inventory.
* * *
Starting an online store is an exciting idea, but when you start to think about stock, storage, and various upfront costs, it can all start to crumble before you even begin. But the good news is that you don’t have to actually have any inventory to run a successful online store, and a lot of stores operate without ever touching the products they sell, which is why for the right person, it can be a practical and low-risk way to get started. With that in mind, keep reading to find out how to start an online store without inventory.
Understand The Inventory-Free Model
Simply put, an inventory-free store usually means you just sell products that are shipped directly to the customer, and that means you can properly focus on marketing, branding, and the overall customer experience, while someone else handles storage and delivery.
Doing it this way means you’ve got a lot less financial pressure, and it makes it much easier to test ideas without having to commit large amounts of money to anything. Plus, you’ll also have more flexibility because you’re not tied to one product range or stuck with unsold stock if something doesn’t work out.
Choose The Right Business Model
There are a few different ways to sell without any inventory, and dropshipping is probably the most well-known – that’s where suppliers fulfil orders on your behalf. Another option is print-on-demand, where items are only produced after a customer places an order. Or some businesses also use third-party fulfilment partners who store and ship products as needed, with good logistics services being the backbone of it all.
Focus On Your Niche And Brand
If you don’t have any inventory, your brand actually becomes even more important – after all, you’re still competing with plenty of other businesses, and that means you’ve got to create trust, clarity, and be totally relevant to what your customers are looking for. That’s why choosing a clear niche helps because you’ll be able to speak to a specific audience rather than trying to appeal to everyone.
Good branding, honest product descriptions, and clear policies all have to be carefully thought about and put in place because they’re going to be the things that help customers feel comfortable buying from you, which means they’ll come back and they’ll tell their friends and family about you.
Start Small And Learn As You Go
One of the biggest advantages of not holding inventory is the ability to start small – really small if need be. That’s useful because you’ll be able to test the products, refine your marketing and messages, and learn what it is your customers respond to without taking on any unnecessary risk in the process. Over time, you’ll be able to expand or adjust as you need to, but only once you’ve learned the best way to do it and what to do in the first place.
Final Thoughts
Starting an online store without inventory isn’t as strange or as daunting as you might think, and plenty of people do it – and they’re successful at it too. So it could be the most practical way to enter eCommerce without letting stock management hold you back.
