Before you start using those drop shippers. Take a look at how much they are charging you for you to sell their stuff, then take a look at their inventory and their prices that YOU HAVE TO PAY FOR, then take a look at ebay for that same inventory.
I expect you to find that majority of those products are already flooded ebay, and most of the time either dont sale at all, or way below the price that you would have to pay for. For example, say its a Flat Screen Plasma TV.
Your Price= $599.99
Suggested Retail Price= $1,200.00
So obviously you want to sell it between what you have to pay for which is $599.99 to the Suggested Retail Price.
So you go down to ebay, expecting ya, I am sure I can make at least $200 dollars on this. ANd then there it is, the same make and model New Flat Plasma TV that you have from your drop shipper. But wait what the hell is this, They are selling it for only $300.
So yes yu can set your price that low, but if you do and it sells, you are at a major loss.
Ebay Fees
Shipping Fees
Drop Shipper Fees
and now you are paying out $299 to the drop shipper since you sold it for $300, and your cost to them is 599.
So you have made no money at all, just spent money.