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Dropshipping Passive Income: How to Make Money with Dropshipping
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Aleksandra -
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Chief of Content Marketing
Aleksandra teaches marketing and management at various levels in High School. She writes about marketing, the economics and logistics of the dropshipping business and ecommerce in general.
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Chief of Content Marketing
10 minutes

Is dropshipping a passive income idea? Since you are on this page, you have probably heard about the dropshipping business model, but you do not know if it is one of the best passive income ideas for you.

But do not stress out – you are on the right track!

In this guide, we will provide a definition of passive income, share some passive income ideas with you, and, and most importantly, teach you how to generate dropshipping passive income.

What is passive income?

Passive income is a term used to define money being earned without the daily commitment of a full-time job. Simply put, it is a cash stream, which requires little or no daily effort to maintain.

Unlike active income (like money you earn from a full-time job), passive income is money that you earn with little or no effort on your part.

In theory, passive income is passive. But, in practice, it is not passive. In brief, to make passive income, you do not have to work the traditional Mon-Fri 9-5 day shift.

However, you do need to invest some time, effort, and money to generate this kind of income.

Also, you need to monitor and keep an eye on your work performance to keep things on track.

The aim is to generate a steady cash flow without doing a lot of “active” work.

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Best Passive Income Ideas In 2023

Is the concept of passive income still foreign to you?

No worries, we will share some passive income ideas with you so that you can better understand what passive income is.

1. Blogging

Making passive income from blogging is one of the most popular passive income ideas today.

And it is absolutely possible to earn a living from blogging through sponsored posts, products, courses, affiliate links, etc. However, it does take a while before you see any income.

2. Influencer marketing

Even if you do not have over 200 million Instagram followers like Kylie Jenner does, you can still make money on Instagram as an influencer.

With the increasing popularity of influencer marketing and businesses spending tons of money on it, becoming an Instagram influencer may be a lucrative way for you to earn money.

3. Affiliate marketing

Affiliate marketing is also one of the most popular passive income opportunities available nowadays. Its main advantage is that many big brands have their own affiliate programs.

However, its disadvantage is that you can only make a small commission on each sale.

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4. Dropshipping

Not interested in going the blogging, influencer, and affiliate marketing routes? How about starting a dropshipping business and becoming your own boss?

Like blogging, dropshipping is also one of the most popular passive income ideas. Here are the top 5 dropshipping business ideas you can start almost immediately.

If you start dropshipping, you will not have to store the items you sell online in a warehouse.

You will have to find a dropshipping supplier with their own warehouse that’s willing to ship products to your customers.

As a result, you will not have overhead costs related to inventory or storage facilities.

You can list your supplier’s items on your online store and sell them without investing your own money in inventory or a warehouse.

Once someone has placed an order with your store and has paid you for that product, you pay your supplier for that product and keep the rest. That’s how dropshipping works.

Also, some of these processes can be automated. With automated dropshipping, you will have more time to focus on building your brand identity and selling your products.

Plus, this way, you can create extra time in your day and do what you love.

That’s why it is safe to say that running a dropshipping business can be very hands-off.

Is Dropshipping Passive Income?

The answer to your question, “Is dropshipping passive income?” is “Yes, absolutely.”

As mentioned above, the dropshipping business model can be an excellent way to earn passive income.

Dropshipping is one of the best low-risk, not to mention profitable, passive income ideas to make money in 2023. Before continuing, read our previous article to see if dropshipping is worth it in 2023.

Dropshipping is considered to be easy money. Still, your dropshipping passive income stream will surely be the result of hard work (at least in the beginning).

For example, you will have to find your dropshipping target audience, niche, suppliers, etc. Also, you will have to develop a bulletproof dropshipping marketing strategy.

Dropshipping is not about getting something for nothing. And perhaps the biggest misconception about dropshipping is that you can get rich quickly.

Although this business model has a “get-rich-quick” appeal, it still involves work. But do not get us wrong – we do not want to scare you off.

We just want you to know that you cannot make money dropshipping if you do not take your business seriously.

With dropshipping, you can make money online and, finally, have more quality “me time” for the things you really enjoy.

We just wanted to keep this short. But we will discuss in more detail how to make dropshipping passive income later in this article.

How Much Dropshipping Passive Income Can You Generate Per Month?

You have probably heard claims that some dropshippers make six-figure dropshipping passive income per month.

Isn’t that an exaggeration? Well, it is possible to make that much on a monthly basis if you are a dropshipper.

However, all those dropshipping businesses that make that much have something in common.  We will cover this topic in the next paragraph.

Now, let’s see how long it takes to get rich once you start dropshipping. It is important to have realistic expectations, be patient, and understand that no dropshipper can become successful or get rich overnight.

And it is not unreasonable to say that you can be making anywhere from $300 – $3,000 in the first month or two of setting up your dropshipping store as long as you put in the work and sell the right dropshipping products.

Unfortunately, many dropshippers tend to make some common dropshipping mistakes and run a few failed stores before becoming successful.

But you do not want to be one of them, do you?

So, keep reading to learn how to make dropshipping passive income and become successful.

Dropshipping Passive Income: Learn how to make money dropshipping from successful dropshippers

As mentioned above, almost all successful dropshipping businesses have something in common.

Here is what they have in common and how you can learn from them to make as much money as possible:

1. They do not treat their business as a hobby

Many people believe that since dropshippers work from home, they spend their days in pajamas doing nothing.

And it is not uncommon for them to ask a dropshipper they know something like, “Sounds like an interesting hobby to make money online, right?”, “So you are working from home until you can find a real job?”, or “Can you please take me to the airport?”

But successful dropshippers do NOT treat their business as a hobby. Instead, they treat it as a real business.

So, if you want to start making dropshipping passive income, you must put your online business high on your priority list.

2. They focus on a niche

Dropshipping store owners thrive by finding a profitable dropshipping niche. But why? They know that if they have a tendency to cater to everyone, then their overall marketing and message will not speak to anyone.

That’s why you need to focus on a single niche just like successful dropshippers do.

For instance, you cannot really optimize your site for specific keywords until you know who you are trying to target and what message is going to reach them.

So, avoid selling mainstream products that you see every day on Facebook or Instagram.

And instead, focus on a more specific niche, whether it is, let’s say, coffee or watches.

3. They are not afraid to negotiate with their suppliers

All successful dropshippers work with vetted suppliers with fast shipping times, no MOQ, and flexible return policies.

But that’s not all they do when it comes to their suppliers. They also negotiate with their dropshipping suppliers.

Whether it is about shipping discounts, price breaks on the cost of each unit sold, or priority shipping to ensure their customers receive their orders faster, they always try to find ways to cut costs, reduce shipping times, and meet and satisfy the needs of their customers.

So, why not do the same?

4. They automate everything

Successful dropshippers from all over the world have realized the value of dropshipping automation. And the sooner you realize it, the better.

It would be wise to streamline your workflows by letting technology do the heavy lifting.

For example, you can automate many aspects of your online business, including product research, product import, order fulfillment, marketing, customer service, etc.

5. They run a few stores at the same time

It is no secret that many seasoned dropshipping entrepreneurs run multiple dropshipping stores. Because of that, they earn more money than those who run only one store.

However, this will not be that easy, especially if you are a dropshipping beginner. You can run a few stores at the same time even if you are new to dropshipping.

Still, the decision of whether or not you should do it depends on your preferences.

Plus, we must mention that there are some dropshipping software solutions available online that can help you run multiple stores from one dashboard.

6. They develop a unique and memorable brand identity

What is clear to successful dropshippers is that authenticity is the key in the world of dropshipping.

Knowing what works for you and your target audience and developing a unique and memorable brand identity can guarantee steady profits.

However, the one thing that can guarantee your failure in dropshipping is not being authentic.

Therefore, to start generating dropshipping passive income, you must focus on creating a strong brand identity and communicating your brand story effectively. Just remember that it does not happen overnight.

Thus, you must work on your brand identity consistently.

7. They build relationships with their customers

Experienced dropshippers are also aware of the importance of building healthy relationships with their customers.

You should be aware of that, as well.

For example, start by minimizing customer effort and maximizing the experience. Make sure it is easy for your customers to search for a product, make a purchase, and find an answer to their questions.

You can do so by offering an easy-to-navigate interface, great customer service, and high-quality content to educate them.

Then, you can evaluate their search and purchasing history to create a more personalized experience in your dropshipping store.

Also, when someone has made a purchase, you can send a personalized e-mail. And the best part? You can automate this process, which can save you time.

Plus, you may want to create customer loyalty programs. If you are able to turn a one-time buyer into a repeat customer, you will keep your revenue flowing and become a successful dropshipper.

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Dropshipping Passive Income – Final Thoughts

As you can see, dropshipping is one of the best passive income ideas in 2023.

Want to try your luck at dropshipping?

Just make sure you follow some, if not all, of the above-mentioned practices (implemented by almost all successful dropshippers) to start making dropshipping passive income.

For more information about dropshipping, check out our blog or join our community.

About the Author

Profile picture of Aleksandra
Aleksandra Miteva
Aleksandra teaches marketing and management at various levels in High School. She writes about marketing, the economics and logistics of the dropshipping business and ecommerce in general.