The idea is that you compare the drop shipper's wholesale prices + shipping fee with the current prices on ebay, pick some items you can make a profit on, and create ebay auctions/BINs for them. Once you get a buyer and payment, you place an order with the drop shipper. The drop shipper ships the item direct to the customer. You never touch the item. Nice in theory, but lots of issues in practice. One is that, even if the drop shipper isn't competing with you on ebay, someone else using the drop shipper is. So the margins are small. Also, the drop shipper may indicate that something is "in stock" right up until you try to order it. This probably gets you a neg rep on ebay. Finally, "your" customer likely gets a catalog from the drop shipper in their shipment, potentially limiting repeat sales. The ideal is to find manufacturers who'll agree to blind drop shipping.
Well this is not a bad idea, I might just order a bunch of crap on dhgate and sell it on ebay and give it a try.
Finding reputable, quality dropshippers is very difficult. I gave it up when I was asked for payment all the time for dropshipper list. What kind of company does not what to be found?