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you really do need a gutter along each side that water runs off. Otherwise the bottom of the shed on the wet side will rot very quickly. Sheds are preferably raised off the ground on paving slabs or a few courses of bricks to keep them off the damp ground, but without gutters, water will run down the sides.
Similarly, you may ask, what happens if you don't have gutters?
If soil erosion occurs because you don't have gutters, your garden could literally wash away. Even if erosion is minimal, puddles of water will form in your garden bed and drown your plants. Melting snow will also drip down and freeze overnight into solid sheets of ice that could kill evergreen shrubs.
In respect to this, does my house really need gutters?
But most homes do need a good rain gutter system to collect the storm water that lands on the roof and direct it away from the house to prevent damage to the structure of your home and to protect your foundation and driveway and sidewalk from pooling water on the sides of your home.
To fully waterproof a shed, first, make sure you select a good location for your shed, use the right foundation, build a drainage system, and remove nearby vegetation. Next, weatherproof the floor and walls, install siding, protect the roof, and properly add gutters.