How to start an online store without inventory

Starting an online store can be overwhelming. There’s so much to figure out — business licenses, website builders, marketing strategies, and so on. If you want to avoid adding product manufacturing, warehousing, labeling, and shipping to that list, you’ll want to learn how to run a shop without holding any inventory.

Luckily, there are multiple ways you can approach this type of business. In this article, we’ll go over how to start an online store without inventory, as well as provide best practices to consider.

Options for how to start an online store without inventory

One of the main reasons entrepreneurs choose to start an online business without any inventory is because it requires less up-front capital investment. You don’t need to pay for the products themselves in addition to warehousing them. Plus, you can spend less time on logistical details and more time on marketing and bringing in more new customers.

Here are the options available to you for starting an online store without holding any inventory.

• Dropshipping: This is one of the most popular ways of running an online store without inventory. In this model, you partner with a third-party supplier who manufacturers (or buys), stores, and ships the product for you. You don’t need to purchase any inventory until you have a customer sale.

However, for this approach to succeed, choosing the right partner is key. “You want someone who can help you get your product from the supplier where it’s produced all the way to your customers’ doorsteps, without any major issues along the way,” says Rengie Wisper, cofounder of Ever Wallpaper, which sells unique wallpaper murals.

• A third-party logistics (3PL) company: A 3PL company is similar to a dropshipper, but they usually don’t manufacture the products. Instead, they procure them from suppliers, warehouse them, and ship them to your customers on demand.
• MLM (multi-level marketing): “MLM works by signing up other people to sell your products for you. You earn a commission on every product they sell,” says Anand K.C., head of marketing for Cloom Tech, a wire harness and cable assemblies manufacturer. “This can be a great way to get started without any upfront investment.”

Many multi-level marketing companies focus on beauty products, home goods, or accessories.

• Print-on-demand products: If you sell products that require customization, this is a good option. You can outsource to an external partner with printing capability who can store basic items (such as plain T-shirts, mugs, and more) and print specific details on them when a customer places an order. “Again, there is no upfront investment required from you,” says K.C.
• Affiliate model: With this method, you partner with other stores that pay you a small commission every time you sell one of their products through your website. They handle product sourcing, warehousing, and shipping logistics.
• Digital products: If you want to create your own products but don’t have the physical storage space for them, digital products may be a good choice. For example, online courses, educational videos, and services all fall into this category.

Best practices to follow

Regardless of which method you use to start an online store without inventory, consider the following to ensure your e-commerce venture is a success.

• Know your target audience. Be sure to have a thorough understanding of your ideal customers’ demographic, geographic, psychographic, and behavioral characteristics. This will help you determine specifically which products and services they’re looking for.
• Make the buying process as smooth as possible for your customers. Your customers likely don’t care whether you’re dropshipping or using a 3PL company — they just want the products they’ve purchased. Minimize hiccups with order fulfillment by working closely with your partners. If any issues occur, take responsibility and support your customers.
• Emphasize the marketing strategy. “This will help you build up your audience and get them interested in what you’re selling before they even purchase anything,” says Wisper. “And then it will help ensure that once they do buy something, they’ll come back again.” 
• Use your strengths. Not all of these no-inventory options will work for every type of entrepreneur. If you have strong marketing skills, then affiliate marketing may be for you. If you love creating content, digital products may be your thing. Know what you’re good at and use that to your advantage in your business model.
• Try multiple options. For some businesses, using more than one no-inventory method may be a good idea. For example, if you create digital courses and sell them, you could also have an affiliate program where you sell other people’s digital courses to compliment your offering. If you make candles, you could sell them alongside dropshipped candle holders.

Using Jotform Store Builder to start an online store without inventory

If you’re looking to start an online store without the hassle of managing inventory, Jotform Store Builder is a powerful, easy-to-use platform that can streamline your business setup. With Jotform Store Builder, you can create a fully functional e-commerce app or website using a simple drag-and-drop interface — no coding required. This tool is ideal for entrepreneurs who want to run a store without the costs and logistics of holding physical inventory.

Here’s how Jotform Store Builder can help you manage various no-inventory business models:

1. Customizable store templates: Jotform Store Builder offers over 300 templates, allowing you to create a unique store that matches your brand. Whether you’re dropshipping, selling print-on-demand products, or offering digital downloads, you can tailor a template to fit your specific business model.
2. Seamless product listings and descriptions: Adding and organizing product listings is easy with Jotform Store Builder. You can upload images, write detailed descriptions, and set options for customization or product variants — perfect for print-on-demand and digital products. This customization helps ensure customers know exactly what they’re buying.
3. Flexible payment options: With integrations for over 40 payment gateways, including popular choices like PayPal, Stripe, Square, and Apple Pay, Jotform Store Builder allows you to provide flexible and convenient payment options. This is especially beneficial for affiliate sales, digital products, or on-demand purchases, where easy, instant payment is key.
4. Automated notifications and push notifications: Jotform Store Builder offers a push notification feature, allowing you to keep your customers informed in real time. You can use push notifications to announce new product drops, special promotions, or limited-time offers. You can also set notifications to update customers on order status, helping improve customer experience and engagement.
5. Order management with Jotform Tables: Every order is automatically recorded in Jotform Tables, making it easy to track and manage details without complex backend software. For businesses using dropshipping, this feature allows you to manage customer orders seamlessly while keeping an organized overview of your sales.
6. Integrations with third-party platforms: Jotform Store Builder can be integrated with various third-party platforms, including CRMs and email marketing tools, so you can expand your reach and automate marketing efforts. This is especially valuable if you’re using affiliate marketing or digital product sales, as you can easily follow up with customers or create targeted marketing campaigns.

With Jotform Store Builder, starting an online store without holding inventory becomes much simpler. Whether you’re dropshipping, using an affiliate model, or selling digital products, Jotform Store Builder provides the tools you need to build a scalable, customer-friendly store — so you can focus on growing your business without the overhead of inventory management.

When you’re thinking about how to start an online store without inventory, remember that you have options. There are several ways you can approach the business, so you don’t have to feel tied to a specific business model.