To woodcut you have to locate trees that can be chopped down, which are displayed
as orange dots on the mini-map. Woodcutting areas are listed below.
When the Axe is equiped, you can click the tree to start woodcutting.
From time to time, wood will drop which you can collect.
You can also chop easier by forming a party and they all wood cut and you split the wood evenly, this concept was invented by the TOP player 'Gwimster'
The Wood Processing Merchant can be found in Argent City (Ascaron) at (2260,2717). Here you can exchange (redeem) harvested wood for other items.
The following trees can be chopped down:
Lv 1 Pine Tree, drops Wood , Can be found in Ascaron , 1962,3078 or 1846,2944
Lv 2 Lavender Wood, drops Birch Wood Log , Can be found in Ascaron near Solace Haven
For all locations of all trees, please check: http://piratia.arbah.ru/en/tree (database)