Ok, I may be able to shed some light onto this.
A dropshipper is a person/company that would sell/ship products on behalf of another person/company.
For example, if you are a dropshipper of paint products and you set up a deal with an online retailer called Jeff's Paint Store, everytime a person orders some paint products from Jeff's Paint Store, you will send the paint product directly to the customer and pack a label/invoice from Jeff's Paint Store.
This way the customer would believe that the paint products are shipped directly from your warehouse. In case of returns, some dropshipping companies do this using account numbers or post box numbers for their warehouse operations. Whenever a product reaches a consumer it would seem to arrive from
Jeff's Paint Store
Po Box 10101
Dropshipper's address
If any returns take place, then the dropshipper would know which account/company this is responsible for.
As for payment, the customer pays Jeff's Paint Store for product A. Jeff's Paint Store then pays you directly (using a creditcard/paypal/some other method) and then you ship it directly to the customer using the Jeff's Paint Store heading.
I'm interested in your products. Send me a list or add me on skype.