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Work From Home Resources

How to Work From Home as a Dropshipper

dropshipper
January 18th, 2014

Unlike majority of homebased jobs that mostly rely on intrinsic or innate skills and talents, a dropshipper (more properly known as a dropshipping specialist) relies on business acumen to make a living. In a sense, a dropshipper is a small business person. This article will provide you with information on how to work from home as a dropshipper.

Skills and Qualifications

Since a dropshipper’s job is essentially in the nature of self-employment. There are no basic or standard educational level requirements other than those which the dropshipper imposes upon himself or herself. It makes good sense, though, if a dropshipper were to have a business degree, or at least have taken up business-related short courses.

On the matter of skills, the following would be highly desirable to find in someone who works as a dropshipper:

  •  A more than average knowledge of what is involved in product promotions and product sales, particularly those that are done online. This may require some understanding about how SEO works for traffic generation purposes.
  •  Good interpersonal and business networking skills. Since the dropshipper will be operating an online retail website (and not manufacturing goods or providing services directly, other than presenting a catalog of what he or she can offer to the market), he or she needs such skills to get the wholesalers’ trust.
  •  A keen feel for the pulse of the market. The dropshipper should know what is trendy, what is in short supply but highly desired, what products need more promotions, and how much certain products go for.
  •  Sharp business judgment. This is especially helpful in the area of making business projections and calculating profit margins.

Sectors to Target

Since a dropshipper operates his own small business, he will not target employment opportunities. Rather, his goal would be the development of a loyal consumer market that could be focused only on one niche (e.g. books and other publications), or on several niches which may or may not be related to another.

Whether the dropshipper chooses to concentrate on one niche or on many kinds of niches is a personal choice that could be influenced by market demographics and the availability of suppliers.

Job Responsibilities

The dropshipper’s responsibilities consist of:

  • Operating retail websites, inclusive of creating and updating product catalogs, taking orders from customers, and placing the orders with the product manufacturing company or wholesaler.
  • Tracking orders (This depends on arrangements with the product supplier)
  • Handling all licensing requirements and permits
  • Paying all relevant taxes
  • Supplier sourcing or solicitation
  • Negotiating deals with product suppliers/wholesalers/manufacturers as the case may be
  • Handling payroll (This is only if the dropshipper has employees of his own)

Remuneration

The dropshipper has the option of paying himself a salary. For the most part though, he earns directly from business profits made.

Getting  the Competitive Edge

Rounding up this article on how to work from home as a dropshipper, remember that a passion for different kinds of consumer merchandise, a flair for sales, and excellent communication skills will give the dropshipper a competitive edge that will put him ahead of competitors.


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