Debating to offer dropshipping or not... Experiences?

So I have a couple niche products that have done really well on craigslist and ebay. I've thought about offering a dropshipping service for a couple of reasons:
1. I could focus my efforts on finding new products and order fulfillment.
2. More units would sell as more posts would go on CL and others would market in ways that I do not.

I'm also a bit concerned for a couple of reasons:
1. My margins would decrease significantly, which in and of itself is not a bad thing, but the market may become saturated quickly forcing me to find other products faster than planned.
2. It could be an open invitation for others to exploit my niche.

Am I being overly concerned?

Does anyone else have experience becoming a dropshipper and how did it work for you?

Thanks.

What you're trying to do is scale your sales up. It's smart.

IMO, making 10% on 1000 pieces sold versus making 20% on 200 pieces sold is much better.

If you can drop ship for other sellers and sell considerably more, it's a total win for you.