UPSC Prelims 2026 · GS Paper I
Question 87: Science and Technology
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 :
AnswerUPSC’s answer is (a).
In dropshipping, the seller sets prices and markets the product but holds no stock: order and shipping details go to a third-party supplier, who ships directly to the customer. In the affiliate model, a site earns a commission for referring buyers; in the transaction fee model, a fee is charged on each transaction processed; in the agency model, an intermediary earns a commission for bringing buyers and sellers together.
Why each option is right or wrong
- (a) Right: the seller controls price, holds no stock, and the supplier ships directly.
- (b) Wrong: the affiliate model earns commissions for referrals.
- (c) Wrong: the transaction fee model charges a fee per transaction.
- (d) Wrong: the agency model earns a commission as intermediary.
Only the provisional key (27 May 2026) was found; the final key replaces it when found.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2026, General Studies Paper I, Series A. The paper on upsc.gov.in.