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UPSC Prelims 2026 GS Paper 1, question 87

Topic: Economy

Q87

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 :

  1. (a) Dropshipping ModelCorrect answer
  2. (b) Affiliate Revenue Model
  3. (c) Transaction Fee Revenue Model
  4. (d) Agency Revenue Model

Solution.

Answer: (a) Dropshipping Model

  1. In the dropshipping e-commerce model, the retail seller sets the storefront prices and accepts customer orders without holding physical inventory in stock.
  2. The seller forwards the order and shipping details to a third-party manufacturer or wholesaler, who ships the goods directly to the end customer.