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Drop Shipping is the hottest money maker for anyone with an eBay account. The way drop shipping works is that a supplier offers products for you to sell, you sell them however you want (mainly eBay or auction sites) with a markup to the price. You then collect the money from the customer and place the order with the supplier, giving them the amount for the item and you take the difference as a profit.
The problem I have found is finding a stable and trustworthy drop shipper with low enough prices to turn a reasonable profit.
A lot of these drop shipping sites cost a fee to join, usually a monthly fee of $24.99 - $49.99. The big drop ship sites like Doba.com and Shopster.com have thousands of brand name products for you to sell. There is a free site megagoods.com I have come to find that has no monthly fees and has a good set of products to sell. The only downside is they do not accept PayPal...
There is one main problem I have found, you should see if the drop shipper accepts PayPal before signing up. This makes the whole process easier. If you sell an item on eBay and collect the money through PayPal it is a lot easier to send the cost of the item to the supplier through PayPal as well. Leaving the profit in your PayPal account.
Also watch out for shipping charges. I have had better luck getting customers to message me before they bid to get a shipping quote. I then message the supplier and get the correct charges to send to the customer. A lot of times wherever your eBay account has been set up it will say thats where the product is located... and using the built in eBay quotes it would give a very inaccurate quote and you will probably be out money by the time you pay the supplier to ship it.
The eBay market has been flooded with items over the past year, so finding unique items at the lowest price is the most important. But to be honest there is still a lot of money to made with drop shipping.
Good luck at this venture. Let me know how ya make out.