How to Effectively Optimize Your Dropship Business

By Rotem Gal

With internet moguls such as Amazon following the dropshipping business model for years now, it is no wonder there are so many people jumping at the shot to make a lucrative living off the same strategy.

In fact, it is estimated that 34% of Amazon’s products are actually sold through other merchants, with Amazon reaping the reward (to the tune of 15%) for playing middleman.

Amazon is one of the best dropshipping business models to date.

And, while most eCommerce business owners don’t stand a shot at becoming as successful as Amazon, there is still plenty of room to build a successful dropshipping business that rivals competitors trying to do the same thing – make a living off dropshipping.

However, it has been suggested that there are nearly 12-24 million online shops up and running at any given time. And, despite the rising trend amongst consumers looking to do all of their shopping online (51% to be exact), only 650,000 of these millions in eCommerce business owners generate more than $1,000 in revenue.

But how can that be you ask?

The truth is, with eCommerce content management platforms such as WooCommerce (WordPress), Magento Community Edition (Magento), VirtueMart (Joomla), and even Drupal Commerce (Drupal) making waves in the eCommerce world, it is easier than ever for the average website owner to build an online shop and start selling products and services.

Popular eCommerce platforms that are easily accessible to all website owners.

And all of this can happen without any prior experience, marketing knowledge, or established a presence as an online business.

While all of this does relate to online shops as a whole, and obviously not every eCommerce shop runs a dropshipping business, the truth remains – making a living off an online shop, regardless of what type, is challenging.

That’s why today we are going to take a closer look at how you can optimize your budding dropshipping business so that you can capitalize on what you have to offer, drive traffic to your business, and ultimately boost your annual revenue far past the $1,000 mark.

What is Dropshipping and What is the Appeal?

Before we jump right into optimizing your dropshipping business, let’s take a look at what exactly it means to dropship, for those that haven’t quite taken the steps to build their business yet.

Dropshipping is a product order fulfillment process by which a customer purchases a product from a business owner, and the product is delivered to that customer, not by that business owner, but by the supplier themselves.

In short, the website owner running a dropshipping business has no need to hold any inventory, has no need for a warehouse full of products, and has no need to deal with the overhead expenses of manufacturing and delivering products.

To make things super simple, let’s follow how the dropshipping process plays out when a customer comes to your website: