Drop shipping companies are basically wholesalers who sell products to a middle man after he makes a retail sale to an end customer. The drop shipper sends or ships the goods, product or service directly to the end customer. The middle man or the company who made the actual sale, collects the money from the customer as if it’s directly sale, the funds are then divided between the drop shipper and the middle man. The middle man's profit is the difference between the whole sale price and the retail price. Drop shipping is a great way to run a home based business, if run correctly a good living could be accomplished right from the comforts of your home. There are many successful drop shipping companies available on the WEB. If you are going to do any business from home we still advise you to get a legal counselor/lawyer to help you make the best decision.