myths and realities

14 Reasons Why eCommerce is Not Passive Income

What other reasons can you think of?

  1. You have to do the work. Actual effort required.
  2. It’s hard to find a product that can be sold for profit and based on the market place conditions.
  3. Shipping is expensive and takes time so that makes it too hard.
  4. The competition is tough – there are other people selling the same products on Amazon, eBay, Etsy, etc., which means you need to undercut them or offer something extra in order to get noticed.
  5. There are many different fees associated with eCommerce – advertising fee, listing fee, seller account fee, transaction fee etc., which will eat into your profits if you’re not careful which can cause stress.
  6. Finding suppliers isn’t easy either because they’re usually overseas so you’ll have to deal with customs paperwork and tariffs if you are lucky enough to find a viable supplier.
  7. You have to learn a lot of new skills to make it happen. Doing stuff means not passive.
  8. Here’s a thought: It’s not passive income if you’re working all the time!
  9. There is no such thing as free traffic no matter what the youtube gurus tell you.
  10. The only way to scale is by hiring more people and that costs money and it’s hard.
  11. You can’t just “set it and forget it”. Late night TV has been lying to us for decades.
  12. Your customer service will be awful until you have any employees dedicated solely to that task.
  13. eCommerce Business is 24/7, not just 9-5 which means you’re never “off” officially.
  14. Real sales transactions don’t happen automatically which is a revelation to the internet get rich quick scam artists.

Danny McMillian and Michael Hartman talked about the reality of selling on Amazon FBA NOT being a passive income opportunity.

Add you comments about the Myth of passive income with ecommerce businesses and specifically the Amazon FBA business model for bonus points. 😉

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