The key to and what makes eCommerce so great is the ability to create passive income. In short, passive income is income that results from cash flow received on a regular basis that requires minimal effort by the recipient to maintain it. In many cases, the work you put into creating passive income is on the frontside and you’ll benefit for years to come with very little effort to maintain the cashflow that you will get from the original investment. There are many methods that do not require much of an initial investment to get started. This makes it a perfect way to make money for many individuals who do not have much money at the onset of creating passive income and implementing passive income strategies.

Another beautiful part of passive income is that income generation is not dependent upon how many hours there are in a day. When you go to work each day, you’ll punch in on the timeclock, go through the motions and work your 8-hour day for 5 days a week or a total of 40 hours. If you make $30.00 an hour, that would be $1,200 gross income a week. Not too shabby but wait. With many passive income strategies, since you are not dependent on a timeclock you can get paid 24 hours a day and 7 days a week. Let’s run some numbers with you only making half as much per hour or $15 an hour. I’m not going to bore you with the math, but it comes to $2,520 a week. So, you have made $1,320 more a week, you haven’t actually done any real work to get the passive income (remember, the work is on the frontend) and here is the real kicker, you can implement as many of these passive income strategies as you want. I personally know of many entrepreneurs that are what we call Serial Entrepreneurs. They’ll literally make millions of dollars a year doing what I just discussed over and over. They’ll also have a lot of free time for travel, family time, buying properties, along with starting brick and mortar businesses in their community with the money they’ve made from passive income strategies.

Two major platforms for making passive income are eBay and Amazon. Many sellers sell on these two platforms with two different business models. The first one is selling private label. With a private label product, you are not necessarily bringing a new product to market, but you are repackaging it under your own label. In short, people will negotiate with Chinese manufacturers to get the best price, work with a label and infographics designer to get a new label, logo, etc. The company will provide the new label along with a UPC to the Chinese manufacturer and they will package the product for the company. The company will order (for example) 1,000 pieces of the product and ship them to their business to sell on Amazon or eBay. The other method is drop shipping from AliExpress. You will create new listings on eBay and Amazon. When someone orders the products, you have them sent from China directly to the person that ordered them. No inventory required, so your overhead is a lot trading online accounts lower than selling products white label. With both business models for selling on these two platforms, it is not uncommon for sellers to sell hundreds of thousands of dollars to millions of dollars a year in products. This creates an amazing passive income stream that a business owner can invest back into their own business or create new streams of income from other sources. Either way, it’s a beautiful thing!