Put simply, drop shipping is a system where you advertise products, then a manufacturer or wholesaler agrees to ship products directly to your customers.
You should always look for a drop shipper that will ship with your return address label or no return address label (you want the package to look like it came from you).
Benefits of doing this as a business mean no stock to keep or audit, no warehouse or staff needed, no storage & insurance for stock needed. Obviously these all help to reduce costs massively! You just need to make sure you get reliable suppliers and avoid any scams.
See the links below for more info on drop shipping, and directories of wholesalers etc
http://www.dropshipprofessor.com/archive…
I know the URL looks dodgy for this one but it has some excellent info on drop shipping as a business >
http://www.real-work-at-home.co.uk/E_Sta…
http://www.wholesalepages.co.uk/
http://www.aidandtrade.com/
http://en.wikipedia.org/wiki/Dropshippin…
Hope these help you
Rebecca x