Drop shipping has a bad reputation. Ever since it became associated with the idea of passive income, people started thinking that drop shipping was either a scam or a lousy investment.
The truth is it’s neither of those.
We know what you’re wondering: Do people really invest in a passive-income Amazon drop shipping e-commerce business?
Spoiler alert: They do.
And they make a lot of money from it.
But first, what is drop shipping?
There are a lot of confusing marketing terms on the Internet right now, such as affiliate marketing and SEO link building. Drop shipping might seem like another entry on the list of words that can intimidate curious entrepreneurs-to-be—but it shouldn’t be.
Think of it this way: you’re basically a middleman. You sell existing products to customers. The profit comes from selling these products at a higher rate than what you bought them for.
The difference between drop shipping and traditional retailing is this: drop shipping doesn’t require you to keep any of your stocks on hand.
Specifically, drop shipping involves creating a supply chain technique that transfers orders directly to the manufacturer or wholesaler. The manufacturer then ships the items directly to the customer.
With drop shipping, you don’t need to make a large investment, since there’s no need to rent a warehouse or find a courier arrangement. This is actually one of the top reasons why drop shipping is popular among online entrepreneurs—which means there are a lot of learning materials online. Business blogs often discuss drop shipping with articles like entrepreneur success stories or Journalreview.org money making tips. These blogs all agree on one thing: if you want to get into drop shipping, all you need is a good idea and a good website and you’re good to go.
How effective is a passive-income Amazon drop shipping e-commerce business in making money?
Just because drop shipping provides passive income doesn’t mean it’s easy work. Like any business venture, drop shipping requires a well-thought-out business plan and investment in the form of time.
Drop shipping is most successful when you have a niche market. Retailers that sell everything from mobile accessories to baby clothes don’t often sit well with customers. These places usually don’t have a coherent brand and come across as desperate to sell money. They can also appear less trustworthy; after all, who are you more likely to trust when you want to buy a new pair of headphones: a general goods store or a retailer that specializes in audio equipment?
If you’re thinking of going into drop shipping, you’ll first need to settle on a niche market and a solid brand before you start building your website.
What happens after I settle on a niche market?
After you settle on a niche, you need to find a supplier.
The supplier is in charge of manufacturing or storing the product and of delivering the said product to your customer’s doorstep. It’s essential that you find a trustworthy and reliable supplier, preferably one that already has experience supplying for drop shipping businesses.
How important is my website?
Your website is your store. Without a website, it’ll be difficult to sell your products to your customers.
Additionally, most e-commerce websites such as Shopify have automated processes that allow the customer to make a purchase easily. Without a website, you’re probably going to have to be online 24/7, issuing invoices manually and forwarding orders to your supplier. And that’s not what passive income is about.
Make sure to create a website that is not only easy to use but also easy on the eyes. Nothing sends a customer running in the other direction quicker than a website that’s difficult to navigate. Given that you’re not investing in a physical store anyway, it’s a good idea to invest in a well-made website instead.
What happens next?
With a reliable supplier and a functional website, you’re almost set to launch your drop shipping business. All you need now is a solid marketing plan. Hire a specialist or research on the best methods to appeal to your niche market.
For instance, if you’re a print-on-demand t-shirt business, businesses and organizations can prove to be huge clients. Get lead generation specialists; they can find contacts to profit and nonprofit organizations who are likely to order custom-designed t-shirts.
It might seem scary at first to invest in a passive-income Amazon drop shipping e-commerce business. After all, there are risks involved. But isn’t that what business is all about? Drop shipping may be risky, but it’s a low-risk, high-return venture. All you need is a little investment money—and a whole lot of courage.