Skip to content

Dropshipping

How to Make Passive Income with Dropshipping


There are more than a million different ways to earn money. Some people work very hard in order to make make money and earn enough from the salaries they get from their jobs. Others want to earn more and are constantly seeking ways and starting side hustles in order to reach their desired outcomes.

But what if there was a way to make money without investing an enormous amount of money, time, and energy? Sound too good to be true? It’s not. Passive income is real, and it’s one of the best ways to build wealth.

There are many misconceptions about passive income. Some people think that it’s easy to make, while others believe that it’s only for the wealthy. The truth is, anyone can create passive income if they put in the work upfront. In fact, this means that there you should start setting your ground for future income right now because the whole point of passive income is “earning money while you sleep.” 

To put it simply, in order to have a passive income one must make an investment in a certain segment. This investment can be made in traditional segments such as real estate or some financial assets, or it can be used as the starting point of a business venture that’ll create a no-work profit in the near future.

In this article, we’ll discuss more elaborately the latter. However, before we start discussing things let’s just take a moment to learn what passive income is, how you can make it, and some of the benefits of doing so. We’ll also disclose a few tips and tricks to get you started. So let’s continue straight to explaining this concept. 

What is passive income?

Passive income is income that you make or collect without having the obligation to work for it. Sounds amazing, right? Well, it’s not that simple, as this can be misinterpreted in a wrong way or misunderstood. Let’s explain. 

Passive income is not some money made with a magic wand while you’re going on with your life, busy doing other things. Neither it’s an income made while you’re lying on your couch, reading a book, or watching your favorite TV show. 

Whether you’re managing a side hustle or just wanting to make a little extra money each month, passive income can be a terrific approach to help you produce extra cash flow.

Moreover, it’ll help you generate more during the good times or when the business is flourishing and serve you as a helping hand if you’re abruptly laid off or deliberately take time off work.

You can have money flowing into your account while you’re busy with your job, or you can just sit and do nothing if you’ve already worked hard to build what’s supposed to be a venture that will bring you constant income flow.

In either case, a passive income gives you the benefit of additional security.

How to differentiate passive from other types of income?

  • Passive income doesn’t mean money that comes from your current job

This means that everything that you earn in the traditional workplace isn’t considered passive income.

  • Passive income differs from side hustles

Side hustles or gigs are additional activities you can take in order to earn more money outside of your main job. So you still need to work or show up in order to be paid. In contrast, passive income means earning profit with little or no effort whatsoever.

  • Passive income can’t come from assets that don’t provide you dividends

This means that investing in cryptocurrencies or other types of virtual assets can’t produce a passive income 

To put it in perspective, in order to earn the passive income you must focus more on creating something that’ll constantly generate some kind of profit. So, the rationale is this: writing a book that can be sold (passive income), instead of being paid for writing articles (active income).

Dropshipping as a way of making passive income

The dropshipping method is one of the ultimate business models that can be used as means of making passive income. In fact, this business model is tailored to fit the framework of the passive income philosophy. 

But what in essence is dropshipping and how does it work? We’ll explain in this next part. 

What is dropshipping?

Dropshipping is an eCommerce business model in which eCommerce entrepreneurs sell products without having to carry any inventory. When an owner of a store receives an order from a client, they simply need to connect with their supplier, who then ships the items that were ordered directly to the customer’s address. 

Simply put, dropshipping is an excellent business model for all new entrepreneurs that are starting in eCommerce. It’s easy to set up and manage, and you won’t be needing large sums of money as investment capital. Along the way, you’ll find numerous dropshipping resources that will additionally help you grow and become a successful business owner.

As we’ve mentioned earlier about the get-rich-quick schemes, dropshipping isn’t something to be considered as such. In essence, like any other business, it’s important if you start working with serious devotion and desire to succeed in this market. 

Benefits of choosing the dropshipping model

There are multiple benefits to choosing to work as a dropshipper and we’ll mention only those that are most important:

  • Profit without particular risk

Due to the fact that you don’t physically own the inventory of your store, the risk is far less imminent, in contrast to owning and running a full-service business venture.

  • Low costs of products

Procuring your products is no longer a thing you have to worry about, and these costs are removed from your overall running costs.

  • Low logistics and storage costs

Since the products you offer aren’t in your possession but at your dropshipping supplier, your costs for storage are basically non-existent.

  • Flexibility

Last but not least, the dropshipping method offers overall flexibility in running a business, and this feature is what makes it a perfect pretender for considering it as a source of passive income.

Key steps for making passive income as a dropshipper 

Like every other business model, there are certain things you need to do in order to prepare your ground for emerging the market as a promising dropshipping business. 

  • Do a thorough market research

Market research will give you a clear picture of how the market stands in the current time, and what trends you should follow or not in order to pave your way to success in this segment.

  • Prepare an extensive business strategy

Every business needs a business strategy that’ll contain every piece of detail of the steps you’re planning to take. In short, what was firstly uncovered in the market research you now have to transform into a viable and actionable process that’ll represent your business story.

  • Choosing a niche

When it comes to niche selection, it’s important that you’re well aware of the real picture of the market and what products are popular. The recommendation here is to go with products that are “impulse purchases” which are products that people are always buying in an impulsive state. Mostly, these products fall in the category of clothing and accessories. Therefore, selling these types of products can easily bring you profits in the long run, especially if you choose to go with high-ticket dropshipping. High-ticket items are products that have high price tags. To put it simply, these are products that are sold at higher prices in the category of items that are similar. For example, dropshipping watches that are branded will bring you much more profit than selling regular ones. Or selling premium branded apparel is much more profitable than going with regular garments.

  • Find your dropshipping supplier

The dropshipping business model is a way of doing business that’ll give you freedom when it comes to storage and logistics, so you’ll only have to take care of the selling points of the products, and your customer service. However, in order to have a seamless process of orders, you’ll need to find the right dropshipping supplier that’ll match your overall desires. Going with high-ticket items can be a real struggle, so you’ll need dropshipping clothing suppliers that you can rely on as they’ll hold and handle the core thing about your business: the product. If you want to sell high-ticket products then BrandsGateway can help you achieve your business goals and set up your store.

  • Building your store

In order to be able to sell products, you’ll need an online boutique that’ll show all the products from your offer. Building your store is easy with some of the tools provided by certain services. Shopify, WooCommerce, and Shift4Shop are only some of the services that’ll provide a clean buying process and won’t be a burden for your business or for the customers.

  • Use marketing to promote your store

As a dropshipper, you’ll have to attract the attention of your buyers by offering products that are eye-catching and that’ll make your potential customer consider buying. As we’ve mentioned in the previous paragraphs high-ticket items tend to attract more customers that might fall under the category of impulsive buyers. But having good content marketing is also important. You can attract these potential clients by tailoring a perfect marketing strategy with channeled targeting, but you can also experiment a little with content marketing ideas that’ll promote your dropshipping store. The most used platforms for making campaigns are Facebook and Google. However, more and more businesses are starting to use YouTube Ads for dropshipping as it provides a better reach because the platform has a high number of active users which amounts to 2 billion, according to statistics. Another platform that’s growing in popularity for dropshipping is Instagram. There are many businesses that are using Instagram stories for dropshipping purposes and are using the platform as an additional medium for attracting the wanted audience. 

How to make passive income by dropshipping with BrandsGateway

Now that we’ve covered every aspect of the passive income portfolio, let’s see what dropshipping benefits from your supplier you should expect when partnering up with BrandsGateway.

BrandsGateway is a company that’s considered the biggest B2B marketplace for dropshipping luxury apparel. In fact, in order to start collaborating, you’ll simply have to subscribe to one of their dropshipping plans according to your needs and desires, and then you’ll become part of the whole experience. 

Once you set up your account you’re ready to dive deeper into this collaboration. BrandsGateway offers a plugin for Shopify in form of a Shopify app, for Shift4Shop via a Shift4Shop app and for Wix, and WooCommerce that’ll automate your process of orders and will alleviate the whole doing business experience. With dropshipping automation, you can achieve much more in terms of having a steady flow while doing the bare minimum required for running your store.

Additionally, if you decide to proceed with dropshipping luxury clothing through a Shopify-based store, and you need a hand in setting up your webshop, you can team up with a development company such as Lemon.dev which will create a store from scratch with their Shopify theme named Liv. With Liv, you’ll cut down the time-consuming process of managing your brand inventory and you’ll have many benefits.

Once your store is built and BrandsGateway’s catalog is imported, BrandsGateway will provide automatic inventory updates which are important for minimizing the risk of selling something that is not in stock. The margins for the products are as high as 250% for each order which is pretty high and gives you an advantage in advancing in other segments of running your business. 

BrandsGateway also offers real-time order synchronization which means that every order is immediately synced with your profile and you can easily access it and pay for it whenever you want to. 

In order to better process your ongoing needs, BrandsGateway also offers a personal account manager who’ll help you grow your business through the preparation of strategies. You can also get pretty realistic feedback for your web store and ask for ways how to improve it. 

Additional benefits of collaborating with BrandsGateway:

  • 120 high-end brands like Gucci, Versace, Armani, Dolce & Gabbana, Jimmy Choo, Dsquared;
  • More than 10,000 products that can be part of your inventory;
  • Numerous discounts that can reach up to 90%;
  • The time window for dispatching the product is 24 to 48 hours;
  • A 14-day return policy that starts from the day the product is received;
  • Convenient worldwide dropshipping across 170 countries.

Overall, choosing BrandsGateway as your dropshipping supplier on your way to starting your dropshipping journey is a very safe decision. Especially if your ultimate goal is to invest in a venture that’ll generate passive income in the long run. 

To sum up

The magic of passive income is what draws everyone to try and chase the idea of getting some money through a rather different channel than the standard ones. In addition, making passive income with dropshipping as a model is becoming more and more popular among young entrepreneurs who are constantly looking for ways of generating income. Of course, becoming a key player in this segment is definitely a priority as it is the only way of getting to create a source of passive income. Therefore, it’s not something that’ll come to you overnight while you’re busy planning other ventures. 

Making a passive income with dropshipping needs a serious approach and a very thoughtful planning process in order to bear the fruits afterward. But as every industry has its perks, dropshipping will give you a slight head start as you won’t have to worry about the products as a whole. With the help of your reliable dropshipping supplier, you’ll definitely set the basis for your future source of passive income.

Profile picture of Dimitar Alimaskoski

About the Author

Dimitar Alimaskoski

Content writer and music fanatic. Always using song lyrics as inspiration for my words.

Get the latest eCommerce tips and insights to help you grow your online business!

Join our growing community and receive a monthly digest of valuable eCommerce content for free!

*By subscribing you agree to receive newsletters with the latest articles. You can unsubscribe at any time.

Categories