How Passive is Selling Physical Products Online?

Selling physical products online has the potential to become 100% passive if you build it to be that way. However, if you are not attentive to how you build your eCommerce site, each sale will be dependent on your active presence and work.

Startup Costs

The initial investment when selling products online can range between $40 and $500+ per month depending on the tools you use. The lowest costs include a domain name (about $10 per year), hosting (starts at $4 per month), and Ecwid eCommerce ($15/month). Once you scale up your business, you’ll probably pay more, because you’ll also have more traffic to your site. Payment processors will also take around 2% of your revenue.

Additionally, you might also want to design a logo, buy a template or theme, add apps & widgets and create high-quality photos. All in all, expect a startup cost of around $2,000. You can recoup your initial investment in around 6 months, and after 9 months or so you’ll start making a profit.

Difficulty

Creating a successful source of income from eCommerce definitely is a difficult task for beginners. You’ll learn a lot of great things in the process and you’ll also make some mistakes. Taking specific online courses can save you countless hours of work.

Time

You need to invest a lot of time in the beginning. How much time depends on the niche you choose, the competition, your skills, motivation, knowledge and execution. 

Risk

This passive income method is not very risky financially since it doesn’t cost much to get started. However, the biggest risk involves the time you will have invested if you fail.

Seasonality

eCommerce can be done during all seasons. The seasonality of your online store will depend on the seasonality of your products.

ROI (Return On Investment)

You will need to spend a whole lot of time in this business, but in the end you can make a lot of money. However, do not expect to make more than $1,000 a month in the first few months. That’s just not going to happen. This business method is in for the long haul, and could provide you a quick & safe way to make a fortune for when you retire. You can make passive income by creating a successful store and automating it using services provided by drop shipping companies, which can store and ship your products directly to your customers. In other

See also:SELLING ONLINE – IS IT A PASSIVE INCOME?

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