I don’t think that Amazon lets you drop ship anymore but last I heard, drop shipping was still ok on eBay. You could try your business idea over there.
I drop shipped on ebay for 4 years and made quite a lot of money at it before deciding to do Amazon full time instead. There were a few routine problems I encountered. First is that you are on the hook for whatever errors are made in the supply chain. So you have to trust the walmart warehouse employees to ship the right undamaged items, and trust the buyers to report the errors honestly. For example, if you drop ship a laptop and the buyer says that the wrong item arrived then you have no idea if its true or not and you are forced to just give them a refund.
Second, retail companies like to cancel your orders when they notice you drop shipping their merch. This can be especially inconvenient if you have 30 items that need to be shipped TODAY but the retailer refuses to approve and ship any of your orders. A single instance of this can result in 30 simultaneous negative feedbacks and put you out of business so make sure you never get overly reliant on the income. Maybe keep a few products on hand to self-ship in case of emergency or stock out.
Lastly (and least importantly), the occasional buyer gets ticked off when they receive a package from walmart instead of eBay - especially if the invoice shows the price that you paid instead of the price that the buyer paid. The thing that you mentioned about everyone winning makes sense to you and me but it doesn’t always make sense to buyers. You can explain that they got the item that they wanted for the price that they agreed to but some people just insist that the paper needs to say ebay on it instead of some other company. If you don’t mind fielding those complaints a couple times a week then maybe take a shot at it and see how it goes.
Feel free to send me a message if you want to talk more about it or ask me any questions
