After my husband’s sudden death in 2006, I decided to start a side business to help me feel financially secure. But as a therapist accustomed to making money based on “billable hours,” the concept of making money in my sleep was alien to me.
I started my first side job as a freelance writer. And luckily, it turned into an opportunity to write a best-selling book. I started a dropshipping e-commerce store as a passive income source. It took a lot of work up front, but within a few months, I was making money in a fairly passive way.
I hadn’t even seen most of the products I sold. And the best part is that it cost absolutely nothing to start earning passive income.
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I learned that there is profit in selling a ready-made business as well as selling goods. Over the years, I have created several online stores. Once they proved profitable, I sold those ready-made businesses to people looking for passive income opportunities without the hassle of setting up their own website. .
Here’s how to start your own dropshipping e-commerce site and generate passive income.
Choose your products carefully
The first step in generating passive income from dropshipping is researching various passive income ideas. I decided to sell fine jewelry because of the low shipping cost and high markup on the jewelry. Even without a physical store, we were able to sell our products at competitive prices and generate unearned income as a result.
I knew a Google search for something like “wedding ring” would never outperform jewelry stores nationwide. But if I chose a small niche store like Pearl Earrings, I could attract more customers.
So when deciding on passive income ideas, choose a small niche to attract customers to your site.
Survey of wholesalers
Finding a reputable wholesaler is the key to having a good ecommerce store as a passive income stream.
You need to find a company that will dropship directly to your customers, and you need to make sure the wholesale company has a good reputation. If you ship your products too late or if your products are out of stock too often, it will look bad to customers who think you are fulfilling their orders.
Search online for wholesalers who sell the products you want to offer. Beware of people who claim to be wholesalers but aren’t actually wholesalers. Regular wholesalers usually require an application and do not charge sales tax.
Related: 5 Reasons Dropshipping is the Future of Ecommerce
Create a retail website
After securing a wholesaler, create an online store. Choose a name for your store, buy a domain, and launch your website.
We strongly recommend that you create your own website if possible. You likely need to make ongoing changes to your site, and quick access to content is important. I once featured a product in People magazine, and sales skyrocketed. Something like this was essential for being able to quickly highlight on my website and I was able to add the PR myself.
Explore shopping cart options
A shopping cart is the most important part of your website. Customers won’t buy your product if they can’t trust that their payments are secure. So choose your shopping cart wisely.
There are plenty of free shopping carts out there, but if you only sell a few items, they might work well for you. However, if you plan on having a large amount of inventory or want to offer promo codes, you’ll need a more sophisticated cart. Fees vary widely, so you should do some research to determine which cart is best for your ecommerce site.
Decide how to provide customer service
Good customer service builds trust. There are several ways to reply to customer questions and comments. I’ve tried everything from email support to live chat to toll-free numbers.
If you can’t reply to emails or answer phone calls during normal business hours, it’s a good idea to hire a virtual assistant to reply to your customers. You don’t want to lose sales or unearned income because you couldn’t answer a question.
You should also check how the wholesaler handles returned items. You may allow retail customers to return merchandise directly. Or you may have to accept the return and then return it to the wholesaler yourself (or hold the inventory until the next customer orders).
There are many ways to market your products and you should find the best strategy for your store. Social media, newsletters, blog posts, and search engine ads are just some of the ways you can attract customers.
Consider selling your items on other websites such as eBay and Amazon. It is important to test wholesalers first to ensure they can deliver reputable products on time. passive income may decrease.
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maintain a stable sideline income
There is definitely a lot of trial and error involved when creating a dropshipping ecommerce store. But being patient will help you recognize what works best for your business.
With persistence and diligence, your ecommerce store can be a profitable way to earn passive income while you sleep.