No problem.
Yes! It's against the TOS, But it's in the fine print. A lot of people don't know about it. Also Amazon doesn't enforce it often. I've heard of some people getting blocked after a while, But they just make a new account and keep going. I wouldn't consider that a very stable business LOL.

You should! I agree that shipping is bad lately. I'm on the same boat, I dropship AND I have inventory of coloring books and gel pens. I can hardly even afford it anymore. It's getting to the point I just want to clear out my inventory and just do dropshipping.