Dropshipping is one of the hottest type of retailing business tools.
Selling online or owning an online internet store could be more cost-effective, convenient and easier by using the dropshipping service.
What is dropshipping? By its term, "drop" and "ship", the retailer orders directly items from the dropshipping and wholesale company by "dropping" the order to them and they will ship the items directly to the (your) buyer.
The advantage is that, as a retailer, you do not keep inventories of products, you do not need any storage to stock up goods you sell.
You keep the mark-up price from the wholesale price by selling their products at a retail price.
Now, let's take a look at the disadvantages, you will not be in-control with the packaging, packing, shipping time, back orders, returns and exchanges and the quality of the products.
If your customer complains, you have to take care of the issues and not the dropshipping company.
What you should do?

1. Choose a reputable dropshipping company.
   Make sure you know what products you want to sell.
   And find the right company.
   
2. Be careful in buying dropshipping list.
   
3. In choosing the dropshipping company, know their policies on shipping, back orders, returns and exchange.
   
4. Choose the company that can give you higher mark-up but are of good quality products.
   
5. Be careful with joining fees.
   Many requires fees for you to join.
   I just don't understand why do you have to pay a "joining-fee" if you are to sell their products? So be sensible.
   Is it going to be worth it?

If you are thinking of doing this as a homebased retail business, make it a legal business by paying taxes as a retailer.
Get a TAX ID number.
Treat this as a serious and real business.
Protect yourself by truly running it as a real retail business.
Establish and maintain a good, mutual business interest with the dropshipping and wholesale company.