After playing around with the dropshipping model for the past month, I've come to the conclusion that there is--no free lunch. Maybe someone could correct me on this, and hopefully so. However, it would appear that the only way to make money on Amazon with dropshipping, would be:
1. Deal strictly with items that have MAP requirements. Basically securing a price bottom. You don't want to be competing on price with Amazon or other wholesalers with very deep pockets--you're going to lose. Normally you must have several trade/business references to get approved by the manufacturer to be an authorized reseller for MAP items. Kind-of a catch-22 situation for new dropshippers.
2. Only deal with wholesalers that offer free shipping with no per-item dropshipping fees. A $3.00 per-item fee on a $30 item is 10% off the top, plus shipping of at least another 10%, plus another 10-15% in Amazon fees. So you have to make about 40% just to break-even.
3. Sell items in the $100 - $300 range. Fast turnover, higher per-item margins.
4. Find a wholesaler who's prices are at least 20-30% cheaper than Amazon prices. However, It is not that hard for the wholesaler to just open an Amazon account and sell directly for near wholesale prices on Amazon either.
I haven't found any wholesalers, particularly in the customer electronics & accessories category that fit all the criteria.
If there are any members out there, that have successfully run a long-term business dropshipping on Amazon (or Ebay) I would really appreciate some additional input.