Bad Business Models #2 – Passive Income from Drop Shipping and other Silliness

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Drop shipping is a business model that involves a third-party supplier who stores and ships products to customers on behalf of a business. This could include products that are sourced from overseas, which can bring their own set of problems. Although the idea of generating passive income can be attractive, the financial risks associated with drop shipping can be significant—especially if the products do not sell or they fail to meet quality standards. Additionally, the success of this model is often dependent on creating a good relationship between the third-party supplier and the business. If the supplier fails to deliver, this can lead to issues that are difficult to rectify.

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