It's simple as counting 123. That is correct. Dropshippers business has three steps.
The customers/buyers bought your items on your e-commerce website or auction sites. You got paid!!!
You go back to your wholesales droppshippers to order the items. The price is as a wholesales price (margin profit usually about 10%-30% depending on the products you are selling).
The droppshippers will ship your items to your customers using your company name and address.
That is a general idea of dropshippers systems. The system would help or hurt your online business depending on your wholesales distributor dropshippers. In order for the wholesale dropshippers to give you a 10% to 30% margin profit plus for them to make 10% to 30% profit, they have to get the products very cheap directly through product manufacturers. They could do this by importing the products in bulk (1 item = 1000 items; bulk does not mean 10 items. They usually import about one container) and stock at their warehouse. Thus, in saying this, the dropshippers would always have products available for you. The products ranges from paper clips to the lastest LCD tv, cellphones, mp4, and etc. Plus, you do not have to keep inventory.
The dropshippers could hurt your online business if you find a middleman who acts as a wholesale dropshippers. Unlike the real wholesale distributor dropshippers, the middleman wholesale dropshippers will charged you a delivery fees. Keep in mind, a real wholesales distributor dropshippers will not charge you a delivery fee to your customers. This is due to the fee they have incorporated with the products already. Middleman would tend to take longer to delivery your products to your customers. Since we live in a fast pace world, time is an essence. The longer shipping time tend to drive the customers away or not to return back to your e-commerce website or auction site.
Okay, enough with the talk. Give me the real deal!!! You would probably asked why not Google it. You could, but it is a never ending process.
Keep in mind the phrase "nothing is free" while searching for dropshippers. In order to make money you have to spend money. Now don't take this message in a wrong way. You don't have to spend 10 thousand dollars. The maximum you should spend is $1000 that includes buying a domain,webhosting, and e-commerce ready website if you have no knowledge of how to create e-commerce website. Here is a cheap webhosting. It is only $1.95/month.
The best place to start is joining a wholesales forum. The best forum is thewholesaleforum. I've been using this forum while searching for a potential business opportunity. The forum has dropshippers looking for potenial clients. Yes, dropshippers do looking for new business. They are using forums to communicate with their potential clients which might be you. The forum is free to sign up and use.
Another site I'm about to direct you to is directory site, wholesalepages .This site will cost money to use. It has over 800,000 wholesales & dropshippers companies. The price ranges from £3.99 to £24.99 to join the directory. Remember nothing is free. There is many other wholesales directories, but in my opinion I feel it is the best one I have used. Using this site to find a reliable dropshippers.
Dollardays has all kinds of products. Their warehouse stocks products from cleaning supplies to high tech technology to shinny jewelry. They do everything for you from e-commerce website to customer services. The only thing you do is how to run your websites, and how to advertising your website.