Q. Do I need a business and website to dropship?
A. Not really, You can do this without a website or a legal business.
Q.Which companys can i do this without these things?
A. There are very few dropshippers that will require this. Only certain smaller businesses require tax id and resell certificate. But those companies will have lower prices.
Q.What happens if i sell a product but it is no longer in stock on the dropshippers site?
A. This is a common problem when dropshipping. The best thing to do is to refund the buyers money and you can either tell them the item was out of stock. {which can make some mad}
Or just tell them you accidentally relisted an item you already sold.
{which is a more understandable excuse and most wont give you bad feedback for it}
Q.Is there a way to make money dropshipping, or is it futile? please give me a few opinions.
A. Honestly there is some money in dropshipping if you can sell a large amount, but the majority of dropshippers are in it for themselves and not you. Most of them squeeze all profit potential out of a product before you get a final price.
Q. What is the best product for dropshipping? highest markup etc? Any suggestions at all?
A. There is no best product. You will just have to research the best possible prices for you to make profit. If your selling on ebay be wary of selling high dollar items as ebay and paypal fees can eat up your profit and put you into debt on the item.
Hope this helps.