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CIPS L5M10 Exam - Topic 1 Question 7 Discussion

What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.
A) To reduce costs and B) To save time
C) To simplify billing
D) To avoid import duty

CIPS L5M10 Exam - Topic 1 Question 7 Discussion

Actual exam question for CIPS's L5M10 exam
Question #: 7
Topic #: 1
[All L5M10 Questions]

What is the purpose of the 'drop ship' customer fulfilment strategy? Select TWO.

Show Suggested Answer Hide Answer
Suggested Answer: A, B

Comprehensive and Detailed Explanation From Exact Extract:

Drop shipping delivers goods directly from the manufacturer or wholesaler to the customer, bypassing retailer warehouses. This saves time (faster delivery) and cost (less handling and storage). Billing remains unchanged; import duty avoidance is not a design aim.

(Reference: CIPS L5M10 Study Guide, Customer fulfilment strategies, p. 7)


by Tawna at Jan 05, 2026, 05:16 AM

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Pansy
4 months ago
Avoiding import duty could be a reason too, but not the main one.
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Theron
4 months ago
Simplifying billing seems less relevant to drop shipping.
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Della
4 months ago
Yeah, saving time is also a big factor!
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Alberto
5 months ago
I think it's mainly to reduce costs.
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Theodora
5 months ago
Yeah, cutting costs is a big win with drop shipping!
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Gracia
5 months ago
Wait, can it really help avoid import duty? Sounds too good to be true.
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Reuben
5 months ago
I thought it was mainly for simplifying billing?
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Laine
5 months ago
B) Totally agree, it saves time too!
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Rory
5 months ago
A) To reduce costs is definitely one reason!
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Kristel
6 months ago
Drop shipping, the ultimate hack for lazy entrepreneurs who hate dealing with physical products. A and B all the way!
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Jacinta
6 months ago
Haha, C and D? What is this, a trick question? A and B are the only logical answers.
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Kattie
6 months ago
C and D? Really? That's like trying to fit a square peg in a round hole. A and B are the obvious choices here.
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Reuben
7 months ago
I agree, A and B are the key reasons. Plus, it's a great way to avoid the hassle of managing inventory.
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Hillary
7 months ago
A and B are definitely the right answers. Drop shipping is all about efficiency and cost-saving.
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Marguerita
7 months ago
I thought drop shipping was mostly about saving time and maybe reducing costs, but I could be mixing it up with another strategy.
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Ardella
7 months ago
I feel like reducing costs is definitely one of the purposes, but I'm not clear on the second option.
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Theola
7 months ago
I remember practicing a question similar to this, and I think it was about avoiding import duty and simplifying billing.
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Deandrea
8 months ago
I think the drop ship strategy is mainly about reducing costs and saving time, but I'm not entirely sure.
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Candida
8 months ago
Alright, time to put my strategic thinking hat on. I've got a good feeling about this question if I can just recall the main advantages of drop shipping.
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Van
8 months ago
Ugh, I'm a bit lost on this question. What exactly is the purpose of drop shipping again? I need to review my notes.
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Annett
8 months ago
Ah, drop shipping - I remember learning about this in class. I'm pretty confident I can nail this one.
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Jesus
8 months ago
Okay, let's see. I know drop shipping helps with costs and speed, but I'm not sure about the other options. Gotta think this through carefully.
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Graciela
8 months ago
Hmm, this one seems straightforward. I think the key is to focus on the main benefits of drop shipping.
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Maynard
2 months ago
Simplifying billing doesn't really fit with drop shipping, right?
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Rikki
2 months ago
Yeah, saving time is also a big advantage!
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Fernanda
4 months ago
I believe it's mainly to reduce costs.
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