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Wholesale dropshipping is a very popular form of product sourcing because it allows you to pay only for the items that you sell.
It works like this: You find a dropshipper and set up an account. Different dropshippers have different setups but usually you can choose to credit your account, or, you can simply leave it empty and pay for each item as you sell it. Once you've created an account, all you need to do is grab the dropshipper's provided photos and product descriptions for the items you wish to sell and list them on eBay or your website.
After you make a sale and receive payment, log into your dropshipper account, select the product you have just sold and take it through the checkout and pay for it. Enter the buyer's shipping details, and the dropshipper will package it up and post it.
Basically, the big advantage of dropshipping is that the dropshipper takes all the responsibility for handling and managing stock, saving you a heck of a lot of time!
Do not hesitate to let us know if you have any further questions.