Drop Shipping is a process whereby a seller takes an order and payment from a customer for an item and then raises an order for that item with a supplier (the drop shipper), who delivers the item direct to the customer.
eBay is one of the main players in the internet auction market. It has auction sites all the world and owns PayPal, Skype and several other online businesses. It was founded in 1995 as AuctionWeb but changed to eBay in 1997.