Drop-shipping is it passive income ?

[gunhell16]

It's not totally passive,
What do you think ?
Is it passive income ?

A lot of drop-shipping has taken place in our country via the Internet, and the others are even promoted by influencers, but they didn't hit either. Even if you lose the idea, maybe the one you join has a large starting capital while others only have a small capital.

That's why it didn't hit our country either, just for a short time, to be honest, but when it first came out online, it immediately made noise on social media platforms like Facebook, but only for a short period of time.

[scithe]

I think the better question is how can it become passive income?

A store needs new products as old ones become unavailable. So you'll need to hire someone to source new products and remove the old.
A store should advertise either through content creation or through paying for advertising.  So someone will need to do that.
Someone also needs to be able to handle any customer service.
Someone needs to keep track of the sales, profits and expenses and file taxes.

All you have to do is pay your people to do these jobs and that's pretty close to passive.

[philipma1957]

It can’t be passive in the USA.

I can’t speak for other countries, but you are doing actions to get the income.

Even if you do it with a bot you had to set the bot up which makes it active.

[scithe]

It can’t be passive in the USA.

I can’t speak for other countries, but you are doing actions to get the income.

Even if you do it with a bot you had to set the bot up which makes it active.

That's not true at all.  With your logic there's no such thing as passive income.  I can't just passively open a bank account and collect interest because I had to open the bank account.

Please see the post above yours for HOW one would passively own a dropshipping business. 

[Findingnemo]

It can’t be passive in the USA.

I can’t speak for other countries, but you are doing actions to get the income.

Even if you do it with a bot you had to set the bot up which makes it active.

That's not true at all.  With your logic there's no such thing as passive income.  I can't just passively open a bank account and collect interest because I had to open the bank account.

Please see the post above yours for HOW one would passively own a dropshipping business.

Nope, that's not passive at all, if you expect someone to manage all your business or drop shipping or whatever without your supervision then it's passive but I don't think that business will become profitable.

It's important to supervise things even if you outsourced most of the works to someone you hired and have to manage the ups and downs depends on the market demands.

[philipma1957]

It can’t be passive in the USA.

I can’t speak for other countries, but you are doing actions to get the income.

Even if you do it with a bot you had to set the bot up which makes it active.

That's not true at all.  With your logic there's no such thing as passive income.  I can't just passively open a bank account and collect interest because I had to open the bank account.

Please see the post above yours for HOW one would passively own a dropshipping business.

You don't run the bank you don't set the banks interest rate or policies = passive

You do run the bot as you set the parameters = active.

STOCK DIVIDENDS = PASSIVE
BANK INTEREST = PASSIVE
POS = passive


All of the above you don't control what they do for your income. All passive.
Running a bot you have active control of what it does for = active


In the USA you hire a person to work for you and run the business of drop shipping.

That means you are an employer you decide the work the worker does.

Once again you are actively participating in that business.

But rather than argue let me dust off my accounting texts. For USA law.

Give me a minute.

Renting a building you own is passive. It would be closer to your idea and still be passive.

https://www.investopedia.com/terms/a/activeincome.asp#:~:text=Active%20income%2C%20generally%20speaking%2C%20is%20generated%20from%20tasks,money%20from%20a%20business%20without%20much%20active%20participation.

the definitions are from above.

passive
portfolio
active.

[philipma1957]

It can’t be passive in the USA.

I can’t speak for other countries, but you are doing actions to get the income.

Even if you do it with a bot you had to set the bot up which makes it active.

That's not true at all.  With your logic there's no such thing as passive income.  I can't just passively open a bank account and collect interest because I had to open the bank account.

Please see the post above yours for HOW one would passively own a dropshipping business.

You don't run the bank you don't set the banks interest rate or policies = passive

You do run the bot as you set the parameters = active.

STOCK DIVIDENDS = PASSIVE
BANK INTEREST = PASSIVE
POS = passive


All of the above you don't control what they do for your income. All passive.
Running a bot you have active control of what it does for = active


In the USA you hire a person to work for you and run the business of drop shipping.

That means you are an employer you decide the work the worker does.

Once again you are actively participating in that business.

But rather than argue let me dust off my accounting texts. For USA law.

Give me a minute.

Renting a building you own is passive. It would be closer to your idea and still be passive.

https://www.investopedia.com/terms/a/activeincome.asp#:~:text=Active%20income%2C%20generally%20speaking%2C%20is%20generated%20from%20tasks,money%20from%20a%20business%20without%20much%20active%20participation.

the definitions are from above.

passive
portfolio
active.

If you what to say the business is not materially run by you


you need to work under 500 hours in any manner on the business.

you need to hire a worker

you need to do less work than the guy you hired.

you need to work under 100 hours and the guy you hire has to work more hours than you.

so in theory you could maybe run it legally passive in the usa 🇺🇸.

but you need to have very good documentation.

If its small maybe you could do it.

The 100 hour rule it the one that can get you easy peasy. as it is under two hours a week which the burden of proof is on you.


If you run an ebay store and hire a guy to do the work and you sell very little you could do it.

If you sell a lot you will be hard pressed to prove the 100 hours in a year was kept.

So your method could work in the USA.

if you ran three ebay stores and hired three different people it might be easier to keep under the 100 hours per each store.

So yeah it would be hard but there is a way.

[johnsaributua]

The US has high working hours and may be different from other countries because of the exemplary work environment barometer there.

So far I haven't found any passive ones in my country, because even for active income, the nature of seeking, building and moving privately makes this opportunity not fixed. However, I think the opportunities are still there.

[Dr.Bitcoin_Strange]

Well for me I believe it coupd be classified as a semi passive income stream, because it's not entirely passive.
Although drop shipping do actually have some aspect of it that could be considered to be passive, such as the automated order fulfilment aspect and also the no inventory management aspect which could actually help to save time and effort.
Although, ongoing active involvement is also highly required, these involvements could include Customer support, Continuous optimization and supplier management, to mention but few.

Inasmuch as drop shipping has the ability to actually generate income without being directly involved in every transaction, you'll still need to put in continuous effort and attention to maintain and grow the business.