Is Dropshipping passive income? Is it Even Worth Doing?
Do you want to earn money even if you are asleep? Then passive income is the ideal choice for you. There are numerous ways of making money in a passive manner. But is dropshipping, a popular business technique, one of them?
Dropshipping can be a passive income, but you need to master in the dropshipping field and ultimately earns passive income from it. To do this, you need basic knowledge on dropshipping, passive income, and which factors make dropshipping a passive income.
Dropshipping is a cost-effective method of selling products without any hustle. If you own an online store, then you have surely thought about choosing the dropshipping business model. With this model, you don’t need an inventory or a warehouse to store your selling products. In fact, you don’t even have to see the products physically. Once you get an order, it automatically or manually transfers it to your dropshipping supplier with the customer details. They then package the product and deliver it to them on your behalf.
Passive income definition
Passive income lets you earn money with minimum effort and time to spend on the business. Though in the initial stages, you need to invest money and do abundant research to set up the business . Once everything is under control, sit back, relax, and enjoy the results of your hard work. It will provide long-term value, and you will earn back the money you invested during the process. This process is more effective than a 9 to 5 job. You have more flexibility to work through passive income than any other job. Multiple jobs offer passive income.
Why is passive income important?
Everyone wants to earn more money. But with only 24 hours in a day, it can get challenging. You would wish to gain more money through different streams of income. But there is only one of you, and you can only push yourself to a certain extent. But with passive income, you don’t have to spend hours in front of your computer and work non-stop. Though you have to go under a lot of effort in the beginning stages. But this effort outruns the multiple benefits you will receive in the future.
Besides increasing your finances, some of the other perks of having passive income are-
Saves time: In your day job, it becomes difficult to do other things you’ve wanted to do but couldn’t due to lack of time. For example, learning a new skill, travel more, or grab a new opportunity.
Multiple income streams: Now that you have extra time in your hand and no fixed daily schedules, you can start creating other businesses of your preference.
Releases stress and frustration: Your day job brings added pressure to complete work or projects. It results in overworking yourself. Passive income doesn’t need over-commitment and stops stress.
What makes dropshipping a passive income?
Dropshipping cannot be a passive income if you don’t use the proper measures to make it passive. After you earn consistent money from the business, turn manual operations to automated using the right platform. Though it depends on your budget and how much you will like to convert. Shopify provides effective functionality and operations to do the tedious and repetitive tasks on your behalf.
Understand dropshipping isn’t passive in the beginning stages. You will need a lot of effort and time to set up the business and advertising campaigns successfully. But with an effective strategy, you will acquire a consistent income with less work in later stages. Reinvest your profit in hiring freelancers, virtual assistants, and other professional workers to reduce your effort.
But the essential factor that naturally makes dropshipping into passive is you can sell products of different niches and deliver it to your customer, all by sitting at your home.
But it is not wholly passive as there is still some work you have to do on your own. For instance, paying your employers and research products you want to sell in your store. Also, you need to manage your employers and control the processes. Also, when you start to outsource, it takes time to train employers and bring the processes into action. But even if you manage to outsource all the work, you will still find operations you have to perform to make your business profitable.
But it shouldn’t be a factor for you not to choose it, as no job is 100% passive.For example, if you want to invest in stocks, you have to manage your portfolio, examine price changes and fluctuations. Even though it is a way of passive income and you will earn a lot once you own a business.
Is it worth it starting a dropshipping business?
I have written a couple of articles you can check out on this topic:
- Is Dropshipping Worth It?
- Why Is Dropshipping Popular?
- How To Start Dropshipping?
- Is Dropshipping A Scam?
- Top Reasons Why People Fail With Dropshipping
Yes. With the increase in the ecommerce business, people are more inclined to buy products online. The online retail sales have skyrocketed over the past years. Even though they take a lot of time in shipping products, online payments are easier to make. It reduces the amount of losing money if the business doesn’t work. It is because you don’t have any inventory, which is expensive. But no other part of starting the online business needs to invest as much money as a warehouse needs. It is more profitable than any other ecommerce store.
But if you are still in doubt, know that Amazon, a global ecommerce giant, also runs through dropping business model. Unlike other businesses, this one is risk-free and doesn’t take much to get started. If you want, go for a cost-effective course. It will tell you about all the ins-and-outs for the dropshipping business like automation, SEO, online marketing, and more. It will save you time, and you will learn to turn the business into a passive income quickly.
Overall, it depends on your motive behind starting an ecommerce business. If you want quick results from your business, then dropshipping is not for you. It needs patience, consistency, and time to start earning money later on. People who are new to online business will find it useful as it is low risk and investment. But It may not be the perfect choice for experienced entrepreneurs who wants a large scale e-commerce store. Entrepreneurs who are looking to grow their brand will find dropshipping difficult. For example, when a customer orders any product which is currently unavailable from your dropship supplier. It will affect the customer experience and, ultimately, the reputation of your brand.
Honestly, most people fail dropshipping and end up losing money because they don’t follow a proper dropshipping course. Now, there are thousands people preaching their course is better than theirs but, I always recommend eCom Elites by Franklin Hatchett. It is litterally one of the best and most affordable courses unlike those thousand dollar guru courses.
To conclude, dropshipping, in general, is the most cost-effect and time-saving business model. But it is not perfect as it has quite a few disadvantages. However, you can solve this hurdle with careful planning and consideration. Automating tasks and hiring employers will make the model effective over the years, and then you can turn this side business into a full-time job. Outsourcing and automation will make it easier to sell products.
There aren’t many courses out there which contain as much information as eCom Elites and I almost guarentee you that if you don’t know what your doing and you end up doing paid ads YOU WILL END UP LOSING MONEY. Save your self some time and money and just get a proper course. But still, if you think dropshipping business is not for you can stop it without losing much money as it has a low upfront investment.