Drop Ship Services: What are they worth?

You may have heard people say that it is too hard to make money through drop shipping. But what you may not know is that thousands of retailers sell millions of dollars of merchandise every month though drop shipping and make a handsome profit doing it.
Time and time again it's said from web store retailers, eBay sellers, online auction gurus, and a host of others: "You can't make any real money with drop shipping. The prices and fees that drop-ship suppliers charge eliminate your profit margins."
In fact, many of the largest retailers in the world (like Amazon, Costco) utilize drop shipping as a method to fulfill their customers' orders. For them, a drop ship product source increases their profit margins by slashing the amount of time and money they have to spend on managing inventory and packing and shipping products themselves.