There're many drop-shipping companies to work with...I have heard that The Drop Shipping directory is a good place to start...http://www.worldwidebrands.com/ <<Taken from an article by Teresa Coffey on Sitesell.com>> On the plus side... Profit margins and earnings are generally substantially higher (varies considerably according to the product) than the typical 5-15% commissions you can typically earn on hard goods sold via an affiliate program. Many products available from drop-ship distributors are either not sold online, or not sold online via an affiliate program. This gives your business a unique edge. You stand out because you offer a product line not readily available on the Net. You decide how you will price your products (with drop shipping, you buy at wholesale prices, and then resell to your audience), giving you added flexibility when building your business. For instance, you may offer a certain product at or below cost (called a "loss-leader") to entice visitors/customers to your Web site. Once there, you can introduce them to other offers, or more expensive, upgraded versions of your "loss leader." You have greater selling flexibility -- you could, for instance, list your products on eBay (this is a common practice), as part of your monetization strategy. On the negative side... You need the ability to clear credit cards online. Your business must be properly registered, as most reputable drop-ship distributors will not work with "individuals." You need to process all orders yourself, and follow-up with both the distributor and the customer. You are responsible for all customer relations -- your client perceives you as both the merchant and shipper. That means you deal with any customer concerns (i.e., product backorders, product returns, customer complaints, damaged products, and so on). You may be subject to geographic restrictions, depending upon where you live. Only about 30% of the distributors listed in World Wide Brand's Drop Ship Directory are able to work with non-U.S. Registered businesses. Trade and export agreements are in place to prevent direct and unfair competition with distributors of the same products in other countries.
James is too modest to mention that he manages the Shopster Affiliate program which is a very easy HYBRID of a drop shipping affiliate concept. Read this thread to get all the info and discover why lots of DP affiliates are onboard and liking the Shopster program. http://forums.digitalpoint.com/showthread.php?t=38882
Thanks for the shopster info! Regarding dropshipping, test a few orders yourself and/or have orders sent to family and friends to see how things are handled. One company I dealt with actually packaged in the wholesale price with the shipments!