Passive Ecommerce: What It Is and How It Works
7 minutes
Do you want to open an e-commerce but don’t have time for online sales? Would you like to maximize the revenue of your job function or professional person and industry email list online shop with minimum effort? I’ll tell you right away that you are not asking for anything that is beyond your reach and the answer is one: PASSIVE ECOMMERCE. Have you heard of it yet?
Passive e -commerce is a business model that does not require much effort but creates an interesting income for entrepreneurs. Unlike traditional e-commerce, which requires constant commitment and targeted skills, this approach is designed specifically to tackle online sales more lightly.
This is not a magic formula or an ideal model, don’t worry. Simply change the organization and the way you manage your online shop . In practice, to increase e-commerce sales, tools are used that tend to relieve the entrepreneur from the commitments related to warehouse or logistics management.
Any examples?
To help you understand better, two examples of passive ecommerce are affiliate marketing and dropshipping , but there are others as well.
The secret to making this model work is to organize yourself right from the design stage. To generate a passive income , in fact, you need to work on the site setup stage, automating most of the processes.
Interesting, right?
In the article I explain what passive ecommerce is and how it works. But if you want to speed up the process and start doing business online, contact me for a consultation . I will help you reach your target 24 hours a day, organizing your ecommerce site in a functional way.
What is passive ecommerce?
To explain what passive e-commerce is, you need to think about all the activities that we usually use to attract users to the site and turn them into customers: paid advertising, ADS and ADV campaigns, SEO, personalized promotions, newsletters, email marketing, attractive site design. The ones I have listed are all digital marketing activities that require more or less effort on the part of the entrepreneur. But the main difference is that some are based on a proactive approach , that is, they urge the consumer to perform a certain action. Others, however, aim to attract visitors in a softer way, creating valuable content that favors the start of the purchasing process spontaneously .
In traditional, or active, e-commerce , we try to increase the e-commerce conversion rate by stimulating a response in the consumer with active marketing actions: targeted campaigns, online and offline advertising, pay per click advertising. The purchasing path, in practice, is already outlined and the potential customer must be channeled into the sales funnel.
Those who deal with passive ecommerce , on the other hand, have a passive marketing strategy that uses non-invasive methods such as SEO , content creation and attention to site design . In essence, the conditions are created for a valuable customer journey that the potential customer starts on in a natural way.
So, although both e-commerce models have the goal of maximizing sales, passive e-commerce does not require ongoing commitment. The keys to the success of passive e-commerce, in fact, are set during the initial phases of the project and are: site optimization and the creation of a user-friendly structure .
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How Passive Ecommerce Works
Continuous income with minimal effort . This is the mantra of passive ecommerce that tends to minimize the entrepreneur’s effort while still generating a constant income.
At this point it is normal for you to be thinking: Interesting! But how does this passive ecommerce work?
The success of this business model is based on the automation of processes and the exploitation of e-commerce strategies that do not require direct commitment from the entrepreneur .
I’ll give you two examples that can generate revenue in a simple way:
- dropshipping;
- affiliate marketing.
Have you ever heard of ecommerce without a warehouse? Dropshipping is an ecommerce model in which the owner does not directly manage the warehouse and does not handle shipping. It is much less expensive for the entrepreneur who simply has to take care of the ecommerce site and find the right suppliers to turn to.
In practice, when the customer places who needs a marketing plan and why? an order, the seller forwards it to the dropshipper (the supplier) who completely manages the shipment. This is a low-cost activity, which does not require initial investments to purchase the goods. Furthermore, there is no risk of remaining stock since the warehouse is only virtual. The seller becomes an intermediary and his role is to guarantee an excellent user experience, through marketing activities and quality customer service.
In passive e-commerce another of the uae phone number most interesting strategies is to do affiliate marketing . Even in this case it is not necessary to have a warehouse or structure a complex e-commerce site. It is enough to simply sponsor other people’s products on your site through affiliate links. When the visitor clicks on the link and completes the purchase you receive a commission.
The effort required in this case is to attract targeted visitors with sponsored products through site optimization and content marketing .