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:
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A medium Economy multiple-choice question from UPSC Prelims 2026. Attempt it above, then check the correct answer and detailed explanation below.
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Correct answer: A. Dropshipping Model
This describes the Dropshipping Model — the seller sets prices and takes orders but holds no inventory, passing orders to a third-party supplier who ships directly to the customer.
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