How to sell on Shopify without inventory is a smart way to start an online business with low upfront costs and minimal risk. Whether you’re a beginner looking for a low-cost way to start or an experienced seller exploring new revenue streams, Shopify makes it easy to launch and scale a store without handling physical products.
In this guide, we’ll explore selling on Shopify without inventory market trends, how the top six inventory-free business models work, their pros and cons, and practical tips to help you start selling smoothly. The top six business models include:
- Dropshipping
- Print-on-demand
- Third-party fulfillment centers (3PL)
- Digital products
- Affiliate marketing
- Services & memberships
Let’s dig deeper!
Sell on Shopify Without Inventory: Trends and Insights
Before getting to know how to start an online store without inventory. Analyzing trends and the market is crucial for every seller to start their business and get sales. Here are some key takeaways:
- According to Statista, the global dropshipping market is expected to reach $372.47 billion in 2025 and $476.1 billion by 2026.
- Shopify continues to be a top platform for dropshipping due to its user-friendly interface and integration with various apps. The number of Shopify dropshipping stores increased from 5.16% to 12.82%.
- According to AuthorityHacker, the print-on-demand market size is forecast to increase by USD 25.36 billion at a CAGR of 25.6% between 2024 and 2029.
- 79.3% of affiliate marketers adopt AI-driven content creation, with blogging (79.1%) being the primary method for promoting affiliate offers.
- The average transaction value per user in the Digital Commerce market is projected to reach $2.23K in 2025.
- On a global scale, China is expected to lead with the highest total transaction value, reaching $3,482 billion in 2025.
In the next section, we’ll explore six proven business models that allow you to sell on Shopify without holding inventory. Let’s dive in to choose the best option for your business!
How to Sell on Shopify Without Inventory: 6 Business Models
There are multiple ways to sell on Shopify without inventory. You can start doing dropshipping, print-on-demand, using third-party fulfillment, selling digital products, and more. Let’s get into it!
Dropshipping
Dropshipping is a retail fulfillment method that allows sellers to sell products without maintaining inventory or handling shipping logistics. On Shopify, instead of stocking items, you can partner with suppliers who handle storage, packaging, and shipping.
When a customer places an order on your Shopify store, you simply forward the order details to your dropshipping supplier, who then ships the product directly to the customer. This eliminates the need for upfront inventory investment and simplifies logistics.
Pros of dropshipping
- Low initial investment because dropshipping allows sellers to start a business without purchasing inventory upfront, minimizing financial risk.
- No inventory management since retailers don’t need to handle stock levels or warehouse space, simplifying operations.
- Easily scale by adding new products without worrying about storage or fulfillment logistics.
- Run the business from anywhere with an internet connection, making it ideal for remote work.
Cons of dropshipping
- Lower profit margins due to supplier fees, which reduce overall earnings.
- High competition as many sellers offer similar products, often leading to price wars.
- Limited control over product quality and shipping speed, increasing the risk of inconsistencies.
- Customer service challenges since retailers must handle complaints about issues they cannot directly control.
Best for those who are skilled in SEO or social media marketing, who want to build an online retail business with limited startup financing, or for individuals interested in selling products rather than designing or manufacturing them.
Print-on-demand
The next model to answer the question of how to sell on Shopify without inventory is print-on-demand.
It is a business model in which products are printed only when an order is received. Under this model, you work with a third-party supplier to customize white-label products and sell them under your own brand. There are some popular products you can sell using the print-on-demand method, such as unisex T-shirts, hoodies, tote bags, posters, phone cases, and more.
When a customer places an order for a product with a specific design on your online store, the order is automatically sent to your POD service provider to print the design on the chosen product. Then, the product is packed and shipped directly to the customer. Some best print-on-demand brands that can be mentioned are Printful, Printify, Gelato, and Gooten.
Pros of print-on-demand
- Low initial investment because POD eliminates the need to purchase inventory upfront, reducing financial risk
- No inventory management
- Create diverse products without upfront investment
- Offer personalized or unique designs.
Cons of print-on-demand
- Less control over shipping cost and delivery time.
- Rely on the supplier for product quality, availability, and timely fulfillment
- Longer fulfillment times because the production occurs after an order is placed
- POD services may have constraints regarding complex design requests
Best for those who want to start selling with limited capital, experiment with designs and products, and easily customize offerings; artists and designers to focus on creating design; small to medium-sized agency.
Third-party fulfillment centers (3PL)
Another answer to the question of how to sell products online without inventory is by using a 3PL.
A 3PL, or third-party logistics provider, is a partner that offers logistics and supply chain management services. It specializes in services such as inventory management, warehouse storage, order fulfillment, return processing, and transportation.
Sellers need to ship products to warehouses managed by third parties. When a customer places an order, the 3PL provider picks, packs, and ships the product directly from its warehouse.
Pros of third-party logistics
- Lower operational costs by leveraging bulk purchasing and fulfillment efficiency.
- Frees up time to focus on core business activities like marketing and product development.
- No need for in-house inventory management or warehousing.
- Faster shipping through strategically located warehouses.
Cons of third-party logistics (3PL)
- Lower profit margins due to service fees charged by 3PL providers.
- Less control over inventory, shipping, and order fulfillment processes.
- Dependence on the provider’s reliability and infrastructure.
Best for eCommerce sellers looking to sell physical products without handling inventory, brands prioritizing sales without warehousing and fulfillment management, and dropshippers relying on suppliers for storage and shipping.
Digital products
Selling digital products is the next model on how to open an online store without inventory.
It refers to offering non-physical items like software, eBooks, music, courses, digital art, templates, or photos online. These products are delivered electronically, allowing customers to download or access them instantly after purchase.
You can create your own digital content or products with the appropriate rights to sell. Then, you can create a Shopify store to sell your digital products. Once the purchase is complete, the digital product is automatically delivered to the customer via email or a direct download link.
Pros of selling digital products
- Instant delivery to customers, enhancing the user experience with automated file downloads after purchase.
- Automated sales and marketing tools, like email campaigns and upsell options, to boost revenue.
- Customizable storefront with various themes to create a unique shopping experience for digital products.
Cons of selling digital products
- Have digital piracy risks, as digital files can be easily shared or stolen.
- Hard to perceive the value of digital products due to their intangible nature
- Intellectual property and copyright violations concerns
Best for content creators looking to monetize eBooks, templates, music, or artwork; educators and coaches selling courses or digital guides; photographers and designers offering stock photos or presets; software developers selling apps or plugins; business professionals providing digital resources like legal templates.
Affiliate marketing
Affiliate marketing is one of the popular ways when looking for how to sell on Shopify without inventory. It is a performance-based marketing strategy where individuals or companies (affiliates) earn a commission for promoting another company’s products or services.
As a Shopify store owner, you build the store site and sell the products offered by the multi-level marketing organization. The multi-level marketing holds all the inventory in its own warehouse, and you either pick up the products and ship them to customers yourself or have the multi-level marketing ship products directly to paying customers.
Pros of affiliate marketing
- Performance-based rewards ensure affiliates are paid based on results.
- Expanded market reach by leveraging affiliates’ existing audiences.
- Flexible, requiring little upfront investment or time commitment.
- Low risk, as starting an affiliate business requires minimal financial investment.
Cons of affiliate marketing
- Risk of unscrupulous affiliates engaging in misleading practices.
- No guarantee of consistent revenue due to the performance-based model.
- Income inconsistency, especially for new marketers.
- Time-consuming to research and promote multiple products.
Best for sellers looking for passive income, content creators, or influencers with dedicated audiences. It’s also ideal for small businesses looking to expand without heavy upfront costs and for individuals with marketing skills.
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Services & memberships
Selling services and memberships on Shopify allows businesses to offer expertise, skills, or exclusive content without having to hold inventory. Services can include consulting, coaching, freelancing, or custom work, while memberships provide recurring access to premium content, online communities, or special perks.
Pros of Selling Services & Memberships
- Recurring revenue potential with membership models generating a steady income.
- Flexible and customizable to different industries and expertise levels.
- High-profit margins as overhead costs are minimal.
Cons of Selling Services & Memberships
- Time-dependent income as services often require active work.
- Scalability challenges since service-based models depend on time and resources.
- Customer retention efforts are needed to maintain memberships and prevent churn.
Best for freelancers, consultants, coaches, educators, and businesses offering exclusive content, premium communities, or ongoing services. Ideal for professionals looking for direct client engagement and businesses seeking recurring revenue through memberships.
Expert Tips for Selling on Shopify Without Inventory
After picking the best business model, follow these expert tips on how to sell online without inventory to streamline operations, choose the right suppliers, automate fulfillment, and market your store effectively.
- Tips 1: Choose the right business model based on your strengths. Each has different requirements and profit potential.
- Tips 2: Integrate apps to automate order processing and tracking. This will save time and ensure a seamless customer experience.
- Tips 3: Work with reliable suppliers who offer quality products, fast shipping, and strong customer support.
- Tips 4: Optimize product listings by using high-quality images, compelling descriptions, and clear selling points to increase trust.
- Tips 5: Focus on marketing and branding by running targeted Shopify ads, building a strong social media presence, and offering promotions.
- Tips 6: Provide excellent customer support by setting clear shipping and return policies and using live chat or chatbots for real-time assistance.
Implementing these expert tips will allow you to sell effectively on Shopify without inventory, create a sustainable business, and focus on scaling your brand for long-term success.
How to Sell on Shopify Without Inventory: FAQs
Yes, it is possible to make money on Shopify without holding any inventory. Several methods, such as dropshipping, print-on-demand, and affiliate marketing, allow you to run an online store without managing inventory. Yes, you can make money selling without physical products through various methods, including selling digital products, print-on-demand services, and affiliate marketing. Using print-on-demand (POD), you can sell custom clothing without holding inventory. Simply create designs, integrate with platforms like Shopify or Etsy, and market your products. When a customer orders, the POD service prints and ships the item directly, allowing you to run a business with minimal upfront costs. That’s how to sell online without inventory.
Wrap up!
One of the major challenges faced by new eCommerce businesses is managing inventory. It requires a significant investment and can be quite daunting for small businesses to handle. So, how to sell online without inventory? In this blog, we’ve explored six business models and share expert tips to help you succeed.
Additionally, you can explore our Retail Blog for the latest eCommerce news and expert tips or contact us for personalized guidance. At LitCommerce, we’re always here to support your journey to success!
