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An e-commerce revenue model where the seller has no stock and instead forwards customer orders and shipment details to a third-party supplier is called:

  1. Dropshipping Model
  2. Affiliate Revenue Model
  3. Transaction Fee Revenue Model
  4. Agency Revenue Model

Explanation

Option (a) is correct
  • In the Dropshipping Model, the seller does not maintain inventory or stock. When a customer places an order, the seller forwards the order and shipping details to a third-party supplier, who then ships the product directly to the customer. The seller earns a margin on the sale without handling the inventory.
Answer: (a) Dropshipping Model; Difficulty Level: Easy
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