This is an accepted solution.
While building my store and editing descriptions and such I have started to wonder if I need to uncheck "This is a physical product" since I will be drop shipping and not actually shipping the item myself.
@dropship_helps is correct—if you were to uncheck This is a physical product, the system would assume you were selling a digital product. This setting essentially determines whether a product requires shipping, so please leave it checked/selected for any products that need to be physically shipped to your customers.
Even though you won't be shipping the items yourself, customers will still need to select a shipping option at checkout. It's up to you whether you'd like to offer free shipping, or set a flat rate to charge for shipping. If your suppliers charge a shipping rate, you can either include this in your product prices or set up a flat rate to cover the shipping costs. Let me know if you have any questions about that and I'd be happy to further discuss shipping strategy with you.