Good writeup. A few more downsides to dropshipping are no quality control ie you don't know what the customer is getting. Items comming from China show inaccurate tracking and packaging is typically ugly and dirty. Also you don't really have any control over your business ie if the supplier stops selling the item or raises prices or runs out of stock your business is done. The better way of doing it IMHO is developing a relationship with a domestic supplier who will ship quickly, provide real tracking and from whom you can actually get quality and interesting products.