Back To Blogs

Generating Passive Income Using eCommerce

20 Dec 2023


by diadmin

Earlier this month we published an article on our website that looked at a few practical steps that your business could take to help you navigate eCommerce during an economic downturn. In it, we noted that many businesses were already seeing downturns of 10 to 15% or more due to supply chain disruptions, increased production costs, and inflation that just recently began to rear its head in consumer costs.

Our advice consisted of a couple of key considerations: eCommerce management technology and shipping rates. We explained how robust multichannel order management and pick-and-pack systems would allow your business to scale back during challenging times, should you need to, while help maintain efficiency, and how tangible big-ticket costs like shipping deserved careful review and renegotiation with your provider, or a change of provider, should the situation warrant it.

In this article, we continue with the same theme of navigating eCommerce during difficult economic times, however change gears slightly by providing additional information and tools to help you weather the storm, by using your existing setup to generate a potential extra source of income, called passive income.

Defining passive income

Passive income is usually defined as any income you earn that doesn’t require a substantial amount of active work or labour, but which generates a steady stream of almost automatic income. A few easy-to-understand examples may include: selling copies of an already written book on Amazon, being paid royalties or dividends, or collecting rental income.

It is important to keep in mind that strictly speaking, passive income is different from a side hustle, or second job. Remember, you don’t need to do a substantial amount of work to generate the income, that’s why it is referred to as passive. But this doesn’t mean that you won’t need to invest some time and effort to set it up. And that’s where you pay the price so-to-speak. Of course, in addition, passive income doesn’t usually generate anything like what you would expect from your primary job, which it called active income. But that doesn’t mean you can’t make a little extra money to help keep your head above water during tough times.

Is it right for me?

Passive income seems like a good idea to most people, however very few actually achieve it. As mentioned in the previous paragraph, there is an initial investment of time and resources required to start generating passive income. And this is where the first qualifier usually enters. Do you have the time and energy to setup this passive source? Is this something that you are prepared to not only start, but see through? Will you be able to handle the small amount of extra regular work that comes from managing this endeavour, or are you already maxed out at work, and prefer spending your spare time with family, friends, or hobbies that you otherwise enjoy? These are questions that you need to ask yourself before committing. If you are still with us, read the next section which lays out some of your options.

Three popular options

We’ve selected three simple yet popular options that can help you get started generating passive income. No single option will suit everyone, so be sure to read through each one and carefully consider your circumstances and requirements. If you do find one that seems like a good fit, we encourage you to research up on it further, or reach out to us at EIZ to find out how our technologies can help you setup and start producing passive income.

1. Dropshipping. No requirement for you to buy or physically hold any stock. A customer purchases an item from you – from an online store where you are advertising the product. As the seller, you automatically place the order from the third-party that actually stocks this item, routing it to the customer’s address directly, while collecting the full cost, plus a little markup for your effort.

2. Amazon FBA. FBA stands for Fulfillment by Amazon. You will outsource your shipping to Amazon directly. Amazon will store, pick, pack, ship, and deliver your product(s) to your customers. The entire fulfillment process is handled by Amazon. They even handle returns and any customer service, including queries and complaints. This is similar to dropshipping, except that it is even more automated.

3. Third Party Logistics Service. Do you have empty storage space in your warehouse that just sits there? Why not rent it out to other businesses that require storage for their products? Earn passive income and become a fully-fledged third-party eCommerce logistics service provider. Help other businesses fulfill their orders by doing what you already do. If you need the right technology – the right software and hardware to get started – reach out to us at EIZ.

To learn more about eCommerce management technology that can help you get started with any of the above passive income options, reach out to us today at At EIZ, we offer a range of suite and standalone app products with a no obligation, no credit card required, free 30-day trial, so you can setup your side business and start generating passive income with little to no cost.