An e-commerce revenue model where the seller has control over pricing but doesn't keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called:
A.Dropshipping Model✓ Correct
B.Affiliate Revenue Model
C.Transaction Fee Revenue Model
D.Agency Revenue Model
Explanation
Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party (usually a wholesaler or manufacturer) and has it shipped directly to the customer. The seller retains control over pricing and customer relationship while outsourcing inventory management and shipping. Affiliate revenue model involves earning commission for referrals. Transaction fee model charges fees per transaction. Agency model involves acting as an intermediary. Hence dropshipping correctly describes the scenario.
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