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 :
A
Dropshipping Model
Correct answer
B
Affiliate Revenue Model
C
Transaction Fee Revenue Model
D
Agency Revenue Model
Explanation
In dropshipping, the seller lists and prices products but holds no stock. Customer orders and shipment details go to a third-party supplier, who ships directly to the customer. Affiliate models earn commission for referrals, transaction-fee models charge per sale, and agency models act for a principal without setting their own price margins.
Industry & TradeE-commerce business modelsDropshippingE-commerceInventoryThird-party supplierRevenue model