A passive income stream: Dropshipping
6 min read
Thousands of sellers are talking about how they “make six-figure passive income dropshipping products online.” Some are selling a few high-ticket items every month; others are selling hundreds of low-ticket items. However, how much you actually make depends on profit margins and expenses, which are often overlooked.
But the real question is, “Can you really make passive income from dropshipping?”
A short answer YES but there are important guidelines which must be considered in order to make this statement into reality.
In this article, we will cover those guidelines and elaborate its importance and provide some tips which could give the new sellers a head start in the dropshipping business.
1. Understanding the know-how of the Ecommerce industry
Before even diving into dropshipping you should know as much as possible about the opportunities that eCommerce industry can offer as a whole. Dropshipping is just one aspect of eCommerce.
What is eCommerce?
What is eCommerce? eCommerce is an umbrella term for commerce that takes place via the internet. The term eCommerce regroups a variety of ways to sell online including on established marketplace (like Amazon or eBay), on your own website, on social media (ig. Facebook Store or Instagram Shopping), dropshipping or print-on-demand. eCommerce can consist in selling physical products that require shipping and handling, or digital products that can be delivered via email.
One of the biggest problems is that beginners sell on all these platforms separately, and do not realize they can centralize their eCommerce operations and manage everything from one account. This section will cover what eCommerce is and how to optimize your workflow.
Dropshipping is one way to sell products online without managing any physical inventory. By connecting your online store to a supplier’s warehouse, they can fulfill your orders and ship them out to customers directly. Your goal is to generate sales, and they will package and ship the products for you.
Another way of dropshipping which provides even more freedom in managing not only your store but can also control your profit margins is dropshipping on Facebook Marketplace and Facebook shops. The beauty of this platform is that you don’t even need to connect your store to supplier’s warehouse. You can simply place order with your supplier when you receive order from your customer and ship the product directly to your customer from your supplier.
A pro tip:
For dropshipping on Facebook Marketplace and Facebook shops, there is dropshipping tool known as MarketplaceFlow marketplaceflow.io , which simply not only helps in product research but also provide valid trackings and as well as helps you in automatically list products either one by one or in bulk form. This tool saves a lot of precious time of sellers and also it makes the listing process as easy as a single click from your mouse.
2. Product Selection & Market Research
Most drop shippers do not actually know much about the products they are selling, or care to even ever see them. But to make a passive and sustainable income source, you must choose the products niche wisely and keep some information about the products that you list.
How to Choose Products to Sell
Choosing products to sell online may seem like a task based on pricing. Some dropshippers promote selling ‘impulse buy’ products, whereas others tell their listeners to just sell a couple high ticket items. We believe that there is much more involved in the process of choosing the products you would like to promote than just basing your decision on price. But that should not be the case, the products which has made dropshippers tons of money are usually evergreen and everyday use products. Seasonal and trendy products can also help in boosting the revenues multiple times. As discussed above about MarketplaceFlow marketplaceflow.io tool, their product research tool can take this huge burden away as well by making things much simpler and easy.
3. Building a Store on eCommerce platforms
Here we will take example of Facebook Marketplace and Facebook Shops because there is still a lot of room of many online sellers to become the next millionaires. The main reason is Facebook marketplace and Facebook shops are not as saturated as Amazon, Ebay or Walmart etc. So its easy to make your identity in Facebook. Its way easier in terms and conditions from Amazon and Ebay etc. It provides much privilege to seller than any other online eCommerce platform. For a head start in the dropshipping on Facebook, MarketplaceFlow tool is your guide which will make all this in reality.
4. Finding a Supplier
The most trustable and doable supplier from where you can drive profits with much higher ROIs and with free and fast shipping service, the suppliers would be used are Amazon, Ebay and Walmart. There are many other suppliers from countries like China from where you can find products in even much lesser cost like Alibaba, Aliexpress etc. But the problem rises is the shipment time. Customers needs products to be delivered to them ASAP but shipping products from China and other countries will take way too much time which will simply result in losing potential customers. For more details on the importance of shipping in the Ecommerce industry, you can visit:
5. Setting Up Sales Automations
Automations are a huge part of any passive business. Automating plays a key role in any Ecommerce domain. One of the reasons why we love using MarketpalceFlow is because it includes very powerful cross-selling features. You can learn more about MarketplaceFlow on:
It is an easy and automated way to promote products in your online store.
6. Boosting Sales
Organically, you can use MarketplaceFlow tool to not only automate your dropshipping business but it would also help in product research which will ultimately lead to boosting your sales. Because through MarketplaceFlow product research tool, you will be able to dig out products that are in high demand and are having low competition. So this will automatically boost sales organically.
For inorganic sales, you can run sponsored ads on Facebook. Though you might be spending some money in generating the sales but these can not only help you boosting sales but would also be assisting in identification as a seller. The positive reviews from those sales can go long way to drive sales in an extra ordinary capacity.
Conclusion Dropshipping for sure can make you the next millionaire but you don’t have to do hard work for it. You need to do smart work for it by adopting tools like MarketplaceFlow which will give you the needed push for this business. Actual fortune is time which will be saved by MarketplaceFlow and the next step after start generating a decent number of sales, you can automate the business and this income stream will act as a passive income for you and it sill be sufficient for you to quit that boring routine 9-5 job.