Correct answer: (a) Dropshipping Model
Explanation
- A
Dropshipping Model
Dropshipping Model. This is a retail fulfillment method where the store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer, retaining control over the final retail price.
- B
Affiliate Revenue Model
Affiliate Revenue Model. This involves a business directing traffic or sales to an external website in exchange for a commission on the resulting transactions, rather than fulfilling orders or managing inventory itself.
- C
Transaction Fee Revenue Model
Transaction Fee Revenue Model. This model involves a company charging a fee for enabling or executing a transaction between two other parties, such as payment gateways or digital marketplaces acting as intermediaries.
- D
Agency Revenue Model
Agency Revenue Model. In this model, an agent or intermediary acts on behalf of a principal to facilitate a transaction, typically earning a commission or percentage of the sale while the principal retains ownership and pricing control.
Summary. Official key is (a). The dropshipping model precisely defines a retail setup where the seller controls pricing without holding physical inventory, relying instead on a third-party supplier for direct shipment. The other options describe different digital business models—such as commissions for referrals, transaction fees for facilitation, or agency commissions—none of which match this specific inventory-less fulfillment arrangement.
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