AI Digital Dropshipping Guide | 5 Steps To Automate Profits From MRR & PLR Products

Your 5-step guide to AI digital dropshipping involves:

1. Brainstorm ideas and select a niche
2. Research relevant digital products to sell
3. Create an Ecommerce website to sell digital products
4. Implement digital marketing campaigns
5. Respond to customer inquiries immediately and at anytime

Digital dropshipping is an online business model where you sell digital products created by others. Unlike traditional dropshipping where you sell physical products, digital dropshipping is selling computer files like ebooks, templates, and digital art. You earn the right to sell these digital files by acquiring a license from the product owner. Then, you market the products online to earn income by selling products someone else created.

Digital dropshipping work is performed completely on a computer, so you can leverage artificial intelligence to optimize nearly any step of the business model. A generative AI tool like ChatGPT o3 can help you decide which niche to target and search the internet to help you quickly find digital product opportunities in that niche. An AI website builder like Snapps.ai enables you to generate a digital dropshipping website in a matter of seconds, while an AI chatbot like Chatbase helps you satisfy customer inquiries at any time of the day.

I’ve been running online businesses for over a decade now. In the last few years, I’ve implemented AI heavily across my systems to improve the efficiency of my operations. In the following article, I break down how you can use artificial intelligence to operate a digital dropshipping business.

1. Use AI for Digital Dropshipping Niche Selection

Start digital dropshipping by choosing a niche. Use a generative AI tool like ChatGPT to help you choose a niche by providing the AI with your expertise and interests. Define the AI’s role in your prompt and request assistance with choosing a digital dropshipping niche.

With this prompt, ChatGPT lists out a handful of niche ideas to consider.

Towards the end of the response, ChatGPT suggests which niche idea you should target specifically and why.

Niche websites experience 53% more engagement than general topic websites, according to We Can Track. Conversion rates for niche websites are 29% higher as well. So, choosing a niche improves your chances of success with digital dropshipping. But, niche selection is complicated and can change suddenly according to market trends. Using AI for niche selection helps you come up with unique niche ideas based on your specific background, rather than just deciding between a handful of broad niches.

2. Use AI for Digital Dropshipping Product Research

Next, search for available digital products to sell in your chosen niche. These products have either Private Label Rights (PLR) or Master Resell Rights (MRR). With PLR, you modify a digital product and sell it as your own. With MRR, you resell the product and potentially bundle the reselling rights alongside it. Use an AI tool to access live SERPs and perform multi-step web research, like ChatGPT Deep Research, Perplexity AI, or Andi Search.

With OpenAI Pro’s ChatGPT Deep Research, write a prompt that is as specific as possible. For example: “I’m building a digital dropshipping store using MRR products. Find editable digital products (spreadsheets, calculators, planners) with Master Resell Rights or PLR licenses that help niche entrepreneurs manage their finances. Start with products relevant to dog groomers or pet business owners. Only show products I’m allowed to resell, ideally ones that are fully customizable. Compare at least 3 from trusted PLR/MRR marketplaces and summarize their features, formats, and resale terms.”

ChatGPT Deep Research took 8 minutes to compare 23 sources and provide me with 3 digital product ideas for this prompt.

Use an AI tool with multi-step web research capability. These tools are able to reference multiple sources to deeply understand a digital product and whether it meets your predetermined criteria.ChatGPT Deep Research summarizes information from product pages, licensing agreements, reviews, and even Reddit discussions to give you a comprehensive overview of their recommendation.

3. Use AI for Digital Dropshipping Website Creation

Create a website to promote and sell your digital dropshipping product. AI website builder Snapps.ai creates your site without code in seconds.

In Snapps, login and choose “Build With AI 2.0” to use the AI website builder.

Add a relevant business name and explain what the business does. If you have a logo for your digital dropshipping business, add it here. Snapps has the capability to automatically take your logo colors from the file you upload and use them for your website creation.

Next, provide the AI with more details about the business, the language of your website, and your preferred tone of voice for the content.

If you don’t have a logo with your preferred branding colors already, choose a simple color palette.

Finally, choose a font and allow Snapps AI to generate a complete website for your digital dropshipping store.

The AI generates a readymade website. Customize your website further by replacing stock photos with relevant product images, enhancing the copy, and adding more pages to the website. Add your digital dropshipping product pages and connect a third-party payment processor like Stripe to enable transactions. Once the website is ready, hit “Publish” to make it live.

An AI generated dropshipping store is typically a faster and more affordable option. Building your own website with code or hiring a programmer can take months to complete. Even a basic Ecommerce website with custom development can take 5 months, with more complex projects taking up to a year or more, according to Oyova Software. Hiring a web developer for a basic Ecommerce website typically costs between $1,000-$10,000. On the other hand, an AI website creation tool like Snapps.ai only costs a few hundred dollars. It finalizes your website in a matter of hours instead of months.

4. Use AI for Digital Dropshipping Marketing

Promote your digital dropshipping products with digital marketing. Use AI for SEO, social media marketing, and paid advertising.

One of the most common ways to use AI for SEO is to generate blog posts optimized with keywords. There are many AI SEO blogging tools, including my AI content writer , Koala, Surfer SEO, and Jasper AI. These tools allow you to enter a target keyword and provide specific details on the type of article you want, like intended length and tone. Although these tools can generate publish-ready articles in just a few minutes, some human editing can make a big difference in helping the article to rank well on Google. Specifically, adding your own first person experience alongside the AI generated content boosts readability and topical authority.

AI streamlines social media marketing tasks, too. Of course, ChatGPT handles copywriting and image generation. However, you can also use AI for even more advanced social media marketing tasks, like creating custom videos for TikTok and Instagram.

AI video generation tools like Invideo AI create complete videos with just an idea. The AI videos from Invideo even come complete with subtitles and a human voiceover to boost audience engagement.

Use AI to brainstorm ad ideas, and then create the content needed for a successful PPC campaign. The AI ad spy tool, Power Ad Spy, analyzes your competitors so that you can replicate their success. You’ll see important details about each ad, like:

• the ads performance in terms of social engagement metrics like likes and shares,
• the demographics of the users clicking the ads, and
• even the ad’s landing page.

Data from Survey Monkey shows that 88% of marketers already incorporate AI into their workflow to streamline processes. 75% of marketers using AI note that it saves organizational costs, according to SEO.com. As such, leveraging AI in your digital dropshipping marketing initiatives speeds up processes and saves costs.

5. Use AI for Digital Dropshipping Customer Service

Optimize digital dropshipping website conversion rates by providing fast customer service. Implement an AI chatbot tool like Tidio, ManyChat, or Chatbase to respond to common customer queries 24/7.

To set up an AI chatbot with Chatbase, create a team and click “New AI agent”.

Next, upload your data sources to train your AI chatbot. Chatbase trains your AI by:

• Uploading files, such as product manuals or user guides
• Copying and pasting text
• Crawling your website
• Writing out answers to specific questions
• Scanning a Notion database
  

Create the agent and test its responses to a range of common customer questions in Playground mode. Fix any incorrect responses by updating the data under the Sources tab.

Once you’re ready to deploy the AI chatbot to your website, go to the Connect tab and click “Make Public”. Embed the AI chatbot into your website to set it live.

Websites with an AI chatbot have a 23% higher conversion rate than websites without, according to SoftEra Digital. That’s because AI chatbots provide immediate responses anytime of the day. Approximately 66% of potential customers expect a response within 10 minutes, according to Time To Reply. AI chatbots fulfill this desire for fast customer service.

How Much Money Do You Need to Start AI Digital Dropshipping?

You need between $300 - $1,000+ to start AI digital dropshipping. Common costs include AI tools, acquiring the rights to resell an MRR or PLR digital product, and advertising spend.

MRR and PLR products typically cost anywhere between $10-$500+ to acquire and resell. Running paid ads like Facebook Ads or Google Ads will cost another $250-$500+/month. However, ad cost isn’t always necessary. You may generate sales of your digital products through organic channels like website SEO and posting on social media.

Is Digital Dropshipping Legit?

Yes, digital dropshipping is legit. Digital dropshipping is just a fancy term for reselling MRR and PLR products. One Reddit user mentions making $3,000/month by reselling PLR products and partnering with Instagram and TikTok creators to market them.

Is AI Digital Dropshipping Passive Income?

AI digital dropshipping is not passive income . Although artificial intelligence does speed up processes, there are still many aspects that a human needs to complete.

One digital product seller on Reddit mentions that they spend time everyday marketing their digital product, so it’s not passive income.

Conclusion: Is AI Digital Dropshipping Worth It?

AI digital dropshipping can be worth it because you can efficiently sell products that other people have invested time into creating to generate online income. However, selling digital products is highly competitive and profit margins are slim because you’re just reselling a product instead of creating your own.

Local lead generation is an alternative online business that’s less competitive and has high profit margins. Local lead generation entails setting up websites that attract and sell customers to local service businesses owners. Instead of competing on a global scale like with AI digital dropshipping, you compete for visibility against a handful of small service business owners like roofers, plumbers, and electricians.

Getting a local lead generation website to rank on the first page of Google generally costs around a few hundred dollars. However, each of these websites can generate $500 - $2,500+/month in income. As such, many local lead generation website owners earn profit margins of up to 90%. Learn how to create local lead generation websites and make money online.