10 Apr 2017 Passive Income Series 1: Alibaba & Shopify
Today, there are many more opportunities for passive income sources than ever before. They come along with many opportunities, but you also have to take into consideration the risks that are brought by signing yourself up for a passive income. Here’s our series on what you can do for passive income and what you need to know about each option.
What is passive income?
Passive income is the income you receive regularly as the result of minimal to no effort by the recipient to maintain it. Whatever you need additional income for; a passive income can be a great way to make money with a little investment of time and effort. Here are our first two examples of opportunities within the passive income trend you should consider taking advantage of.
Alibaba is the leading platform for global wholesale trade. They aim to make it easy to do business anywhere. Through presenting their platform online, they give suppliers tools to reach consumers across the globe and give buyers a quick and easy way to find products and suppliers for the things they need.
For you, you have the opportunity to sell your products on an easy platform. On the other hand, you can easily make bulk purchases to resell on other sites. The most popular method individuals are using for Alibaba is to buy in bulk, and then sell each product individually on websites such as Amazon and Shopify.
At Shopify, you have complete control over your online store. The site offers tools to customize your online store, manage products and inventory, fulfill orders, and track sales and growth trends. They handle everything including marketing, payments, secure checkout, and shipping, allowing sellers to focus on other things outside of their site.
Passive income comes into play through giving you the opportunity to stock your site and not have to worry about it. Sellers have the opportunity to ship directly through Amazon. What does this mean? This gives you the opportunity to buy through Alibaba, ship to Amazon, and have them do the shipping work as you place the individual items to be sold on your Shopify website.
You can choose to ship yourself, which will save you some costs, but add some time and liability. If you are holding inventory, you should check in to make sure you are adequately insured. Accidents could happen that could destroy your business through lost inventory. Having the proper business insurance coverage can help insure your investment.
These alone or combined can be a great opportunity for a source of income on the side. Keep an eye out for our next blog in the series for more tips on passive income sources. If you are considering a passive income source, give us a call at (800) 941-3317 to learn more about how you can protect yourself and your business.