Is Dropshipping Passive Income

Is Dropshipping Passive Income

Dropshipping is quite popular today, so it’s only natural that you feel curious about whether or not it’s worth your effort. Of course, that includes knowing how much time you need to invest in it – let alone the money – and its profitability.

Well, I’ve been a dropshipper myself, and I’ve owned several successful stores, as well as others I’m not really proud of. I want to offer my knowledge to answer those doubts.

To start things off, let’s answer the main question: dropshipping can be a form of passive income for you when done well. You do need to work a lot at the start to get everything in proper order. Once you have a store up and running, you can simply take a break and leave everything running automatically; it just takes a bit of time and effort to get there.

If you’re interested in passive income in general, then read on and learn all the basics (plus a bit about dropshipping itself). You’ll then be fully capable of assessing whether or not you want to take that path.

Passive income: what is it?

Passive income is currently seen as the best approach to making money, and it’s because how they allow more freedom – especially favored in recent times.

Simplified, passive income refers to earning money without having to work every day to maintain it. You’ll always need to work at the beginning, setting up all the requirements (they depend on your method) for it to work.

With time, this initial effort will start to generate money without you having to work further. You basically only need to check now and then to see if everything works as it should and maybe even scale your venture to increase your earnings.

You’ll keep making money while you do anything else, even sleep.

Why would someone want to earn passively?

How much money you make determines how comfortably you live: what you can buy, where you can go, how many things you can do, etc. That’s common sense.

Income is traditionally tied to full-time jobs, which is expected seeing how that’s how we’ve lived for centuries. While some people earn commissions or based on how much they work, most people earn static salaries.

For people earning commissions, their amount of work and dedication every day dictate how much they’re going to make. Any traditional job needs you to be present in one way or another.

Passive income streams work somewhat opposite to that idea. Your final goal is to make as much money for as little work as you can. There are many benefits tied to passive income, some more obvious than others.

Firstly, you increase your income. You also achieve that by building some sort of asset with its own value, which then means you can sell it as well. Another advantage is that you can still make money if you stop working for some reason, and you don’t have to give up your job since it can be built and maintained during your free time.

When done properly, your passive income stream can grow to be your main income source. This can occur even while you have a full-time job, so it’s a great transition from employee to self-employed.

To many, passive income is sort of a holy grail. It lets them pursue what they really want and enjoy since they don’t have to sacrifice their time for money. However, the real advantage with this concept is its snowball effect; it scales with time, and it can grow beyond becoming your main income stream.

If you do it correctly, you might even find an income stream that increases indefinitely.

Passive income and dropshipping

Now, let’s learn a bit about dropshipping. It’s basically to offer products you don’t own nor keep in stock; you instead list and market items straight from a supplier who handles packaging and shipping.

It can be summarized in a few simple steps:

  1. Set up an online store.
  2. Offer products from suppliers you’ve contacted and advertise them.
  3. Customers order from you.
  4. You order from your supplier on their behalf, using their addresses and information.

It doesn’t quite sound like passive income, does it? You need lots of work to get to that stage, but it’ll get there. You have plenty of options to make the process automatic with time, and you can establish different systems to make your store work for you.

You can automate your store pretty much entirely thanks to different tools and methods, and you have full control over which processes you want to handle your self (if any). Even if you can’t find software for certain processes, you can still hire freelancers and virtual assistants to take care of different tasks.

You can do this right from the start if you have the money, but your business should be able to pay for these itself if you build a solid foundation. Don’t worry, you’ll get there eventually.

If you use platforms such as Shopify or WooCommerce, then you have access to countless apps and plugins that add additional features and functionality to your store; they can automate entire processes in your business, so it’s a great way to speed up the passiveness of dropshipping.

Keep in mind that you’re still running a business. You can automate the store itself, but managing it properly is something only you can do. You’re responsible for scaling it to new levels and manage your staff.

You can outsource order fulfillment, product research, marketing, etc. You can’t outsource where you want to take your business next. You might not even want to outsource key tasks like handling payments or keeping track of your cash flow.

I know that makes it seem like it’s not passive income. Just remember I said that passive income still requires you to check now and then to keep everything running properly. Paying your staff isn’t something you’ll do every day, and taking vital business decisions is just the same.

Consider other popular passive income streams: blogging, trading, investing. All of these require you to work now and then: upload more content, check how the markets are performing, manage portfolios, etc.

Again, passive income isn’t free money. It’s ensuring that you can earn as much while working as little as possible.

Dropshipping requires lots of work when starting. You need to build a store, find products, market – basically run the entire business yourself. When you do outsource, you still need to train your employees and establish processes.

Luckily, you’ll start noticing how your workload will decrease with time. Each effort you make means less effort down the road until you’ll only need to check every few weeks, but you’ll be making money every day.

Is dropshipping worth it?

Dropshipping is as worth it as you make it. Still, the truth is that it’s constantly increasing its influence over the entire commerce industry, and every year shows more money being handled by dropshipping stores.

You can simply use Google and find how much it has grown with time. Lots of people make lots of money with it.

The key lies in understanding it’s a serious business like any other, and that means dedication and lots of learning.

Honestly, if you go out there without knowing anything and start running paid ads, you will probably lose A LOT of money. That’s why I recommend a course to go and learn about dropshipping from.

If you’re interested in pursuing a career as a dropshipper, then I’ll recommend Franklin Hatchett’s course: eCom Elites. It’s filled with all the content you need, from store building to marketing and scaling, to run a successful eCommerce.

You’ll even learn how to automate your processes to turn your store into real passive income.


Dropshipping is one of the most profitable forms of passive income, but it’s also one that requires a lot of discipline and effort.

If you’re willing to invest work and money in the beginning, then it’s definitely one of the best income streams you can build in 2020.

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