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.

ATo reduce costs

BTo save time

CTo simplify billing

DTo avoid import duty

Show Suggested 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

20 days ago

Avoiding import duty could be a reason too, but not the main one.

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Theron

26 days ago

Simplifying billing seems less relevant to drop shipping.

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Della

1 month ago

Yeah, saving time is also a big factor!

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Alberto

1 month ago

I think it's mainly to reduce costs.

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Theodora

1 month ago

Yeah, cutting costs is a big win with drop shipping!

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Gracia

2 months ago

Wait, can it really help avoid import duty? Sounds too good to be true.

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Reuben

2 months ago

I thought it was mainly for simplifying billing?

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Laine

2 months ago

B) Totally agree, it saves time too!

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Rory

2 months ago

A) To reduce costs is definitely one reason!

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Kristel

2 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

2 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

3 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

3 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

3 months ago

A and B are definitely the right answers. Drop shipping is all about efficiency and cost-saving.

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Marguerita

4 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

4 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

4 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

4 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

4 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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