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Author Topic: Drop-shipping is it passive income ?  (Read 24942 times)

Offline gunhell16

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Re: Drop-shipping is it passive income ?
« Reply #15 on: April 12, 2024, 05:08:34 PM »
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.
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Re: Drop-shipping is it passive income ?
« Reply #15 on: April 12, 2024, 05:08:34 PM »

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Offline scithe

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Re: Drop-shipping is it passive income ?
« Reply #16 on: April 15, 2024, 04:45:40 PM »
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.

Offline philipma1957

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Re: Drop-shipping is it passive income ?
« Reply #17 on: April 15, 2024, 06:00:20 PM »
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.
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Offline scithe

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Re: Drop-shipping is it passive income ?
« Reply #18 on: April 15, 2024, 08:51:37 PM »
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. 


Offline Findingnemo

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Re: Drop-shipping is it passive income ?
« Reply #19 on: April 23, 2024, 06:35:19 PM »
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.
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Offline philipma1957

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Re: Drop-shipping is it passive income ?
« Reply #20 on: April 23, 2024, 10:29:26 PM »
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.
« Last Edit: April 23, 2024, 10:43:14 PM by philipma1957 »
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Offline philipma1957

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Re: Drop-shipping is it passive income ?
« Reply #21 on: April 23, 2024, 10:57:47 PM »
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.
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Re: Drop-shipping is it passive income ?
« Reply #21 on: April 23, 2024, 10:57:47 PM »


Offline johnsaributua

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Re: Drop-shipping is it passive income ?
« Reply #22 on: April 24, 2024, 09:47:37 AM »
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.
need work

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Re: Drop-shipping is it passive income ?
« Reply #23 on: April 27, 2024, 08:56:53 AM »
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.

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Re: Drop-shipping is it passive income ?
« Reply #24 on: June 01, 2024, 11:10:20 PM »
Is it passive income ?
You need a very good customer base to have a successful drop shipping business, and to get a good customer base, it does not require little effort because you have to be very intentional in every action you take. This is the exact reason why drop shipping can not be considered passive income to me.

If it is possible that you already have a very good and active customer base and that you require little effort in the business of drop shipping, then drop shipping is a passive income to you, but generally for new drop shippers in the business, drop shipping is more of an active income than it is a passive income.
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Re: Drop-shipping is it passive income ?
« Reply #25 on: June 27, 2024, 02:58:04 PM »
Yes, you are right that Dropshipping is not a passive income. Because in Dropshipping you have to buy a thing and then you sell that product to your client at a high rate. In Dropshipping the main thing is that you work you get the money you will not work you will not earn money.

Yes, you are right, unlike me, I find it to be a stressful business in which it will makes someone look an unserious person, for me, someone can hardly makes sells and get a good profit and it can hardly attract customers, just like you said, you will have to sell it at a higher rate just for one to get profit, so for me I don't find drop shipping to be an encouraging job for people especially the youths.

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Re: Drop-shipping is it passive income ?
« Reply #26 on: June 27, 2024, 05:30:19 PM »
I think drop-shipping cannot be a passive income. Passive income is money you can earn with little effort and without working a traditional job. Drop-shipping needs more effort because you need to market the product to the customer for beginners it is very hard to start drop-shipping cause you need to engage but drop-shipping is a good way to get income.

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Re: Drop-shipping is it passive income ?
« Reply #27 on: July 08, 2024, 09:30:45 AM »
Just recent that I got interested in drop shipping business in which now I am starting to engage for this one because I need new source of income (not knowing that there is this thread who is running for how long now .

Passive income? it cannot be called as this because you need to still provide capital and some actions before this business starts and there is a need for human action to make this running .

I think drop-shipping cannot be a passive income. Passive income is money you can earn with little effort and without working a traditional job. Drop-shipping needs more effort because you need to market the product to the customer for beginners it is very hard to start drop-shipping cause you need to engage but drop-shipping is a good way to get income.
exactly  , this is not a passive but this is still a income bringing area because this generates income for other people (like me of course).

 

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