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Q52
(IAS/2026)
Economy › Industry, Infrastructure & Investment
Official Key
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:
Result
Your answer:
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Correct:
A
Explanation
The correct answer is Dropshipping Model.
Dropshipping is an e-commerce retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third-party supplier, who then ships it directly to the customer. The seller acts as a middleman who controls the marketing, storefront, and retail pricing, but never physically handles the product or manages inventory.
- Affiliate Revenue Model: Involves promoting another company's product for a commission. The affiliate does not control the product's pricing or handle the transaction directly.
- Transaction Fee Revenue Model: A company receives a fee for facilitating or executing a transaction (e.g., payment gateways or auction sites).
- Agency Revenue Model: An agent acts on behalf of a principal to sell goods or services, typically earning a fixed commission rather than setting their own retail prices.
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