How To Make Money Dropshipping Passive Income

Are you great at keeping up with trends and selling different products? You can use these skills to start a side hustle by dropshipping products.

If you’re wondering how much it costs to start this side hustle and how much profit you can make; don’t fret, as we’ll answer all your questions in this article.

An Overview of Dropshipping Products: A Primer

Gone are the days of managing inventory, as the magic of dropshipping will take your ecommerce business to the next level.

Affiliate marketing and dropshipping let you sell items you don’t physically have. So, when someone places an order, you’ll purchase the products from a third-party supplier.

The supplier will then ship the order directly to the customer, so you can think of yourself as a middleman. In some cases, you’ll have to handle customer service and client complaints as well.

Overall, dropshipping is a great business model for any micro-entrepreneur who has good selling skills.

All you need to do is look for popular products. Keeping up with Google Trends, for instance, will help you find which hot products to sell.

How Much Can Dropshipping Earn You?

How much money you make depends on many factors. Those include your profit margins from each product and the number of sales.

On average, profit margins can range from 10% to 45%. That means if you make around $100,000 in sales, your profit will be anywhere from $10,000 to $45,000.

You can expect to make around $500 to $3000 a month in your first year of dropshipping. While it seems like a small amount of money, your side hustle will grow as you build a bigger customer base.

Since you won’t be doing inventory work either, you’ll have enough time to focus on marketing and Google Trends to pick new products. After a while, your side hustle can turn into a lucrative business.

The dropshipping market is huge too, with an estimation of $149.9 billion in 2020. In 2022, the market size grew significantly to reach $224.99 billion, and it’s expected to reach $557.9 billion by 2025. That means there are endless opportunities for you in this market to make money.

How Much Does It Cost to Start a Side Hustle Dropshipping Products?

Starting a dropshipping business can cost you as little as $100, but you’ll also have to pay some monthly subscriptions to keep your shop running.

To start, you’ll need to create a website for your business. You can buy a domain name or set up your e-commerce profile using websites like Shopify and Squarespace. These websites charge you a monthly subscription of around $25 to $30 for the basic plan.

If you decide to build your website though, you’ll have to hire a web developer, and that can cost hundreds of dollars. It’s worth it, however, because the more professional your website is, the better sales you’ll make.

As for finding dropshipping suppliers, most beginners start with AliExpress. Yet, you can use platforms like Worldwide Brands and Salehoo, but unlike AliExpress, these websites aren’t free as you’ll have to pay a fee to access their supplier base.

Where Can You Dropship Products?

You can maximize your profits by creating a website for your business. This way, you’ll also be building a brand with a loyal customer base.

Alternatively, selling on Amazon without inventory is a great option, especially for beginners. However, it’s not free, and it comes with some limitations and problems that you need to know about.

For starters, Amazon will charge you around 8% to 15%, depending on the product type, as well as a fee per unit sold. If you’re making good sales though, you can opt for the Professional plan, which costs around $40 per month, no matter how many products you sell.

Note that this will eliminate any communication with your customers, which means you won’t be able to grow long-term relationships with them.

Why You Should Consider Dropshipping Products as a Side Hustle

Aside from being a great source of passive income, there are many reasons why you should consider dropshipping as a side business. Here are some of them:

• Low startup costs: You won’t have to invest your hard-earned money in leasing a store and stocking inventory. All you need to do is keep up with Google Trends and create an online website to sell all types of products.
• Scalability: Scaling up your business is easier since the one thing you’ll be doing is advertising and looking for popular products to sell.
• Flexibility: You can run your business any time of the day from anywhere in the world. You’ll only need a working internet connection to check your website.

Problems With Dropshipping Products

Unfortunately, dropshipping products isn’t the perfect side hustle, as it comes with some downsides you should know about. Here are some of them:

• Supplier issues: From late shipments to bad-quality products and low inventory turnover, you would take all the blame for supplier problems. These issues can have a negative impact on your business.
• High competition: Since it’s an easy-to-start side hustle, dropshipping is a highly competitive industry.
• Limited customization: You’re not responsible for the products you sell, which means you can’t customize them to improve the customer experience.

Frequently Asked Questions

What products are the most successful to dropship?

There’s no “best product” in the dropshipping field. You can make a fortune selling completely random items, like air fryers and pet toys. Generally, checking Google Trends is one of the best ways to find popular products to dropship.

Is dropshipping a sustainable side hustle?

Dropshipping is a great way to make money as a side hustle, but it won’t be sustainable in the long term. You have little to no control over product quality and shipping, which can lead to various issues.