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Q52·GS Paper 1 · Prelims 2026

E-Commerce Supply Chain Models

EconomyDigital Economy & FintechFactual singleEasyStatic

Question

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:

Options

a

Dropshipping Model

Answer
b

Affiliate Revenue Model

c

Transaction Fee Revenue Model

d

Agency Revenue Model

Explanation

The correct answer is (a). The dropshipping configuration is a popular e-commerce retail fulfillment model where an online storefront processes orders without maintaining physical inventory or warehouse stocks. Upon receiving a customer purchase, the retailer purchases the item directly from a third-party manufacturer or wholesaler, who handles the logistics and ships the product directly to the end consumer. This allows the merchant to manage pricing and front-end transactions independently.

Question details

Year

2026

Paper

GS Paper 1

Question

Q52

Subject

Economy

Sub-topic

Digital Economy & Fintech

Type

Factual single

Difficulty

Easy

Nature

Static

Source hint

Standard Business Studies & Digital Commerce Frameworks

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