I've been reading about drop-shipping for quite time and it seems definitely achievable. One thing I'm not sure is how do you handle returns? What is someone wants to return the product back to you? Do you send it back to China or just take the lost? How do you handle the costs for shipping etc?
In some cases where the product was received damaged can't be resold a good dropshipping company should just take the hit without a return.
Depending on the shipping company in use, there may be local returns addresses in some countries that will get on forwarded, or it may be worth it for you to set something up.
Assuming you are upfront about the product coming from China I don't think it is too bad to get them to send back there, obviously in some cases a customer won't be happy and you would offer to cover the return on a case by case basis.
