Chapter 9 -INTRODUCTION TO ELECTRONIC-COMMERCE

 Chapter  9 -INTRODUCTION TO ELECTRONIC-COMMERCE

WHAT IS E- COMMERCE?

 

E-commerce (Electronic Commerce) refers to the buying and selling of goods and services over the Internet. It involves transactions between businesses, organizations, and individuals using electronic channels, such as email, online marketplaces, and websites. E-commerce includes a wide range of activities, from the purchase of physical goods to the trading of stocks and securities, and the provision of services such as online banking, travel booking, and entertainment. The growth of e-commerce has made it easier and more convenient for consumers to access goods and services from anywhere in the world, and for businesses to reach new customers and markets.

DEFINITIONS: E-COMMERCE

 

E-commerce refers to the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. This type of commerce has dramatically increased in recent years with the advent of the Internet, mobile devices, and online payment systems. E-commerce allows consumers to electronically exchange goods and services with no barriers of time or distance, and businesses to offer their products and services to a global customer base.

 

APPLICATION OF E-COMMERCE

 

E-commerce refers to the buying and selling of products or services through the internet. It has a wide range of applications, including:

 

Online Shopping: Customers can purchase products or services from online stores or marketplaces, such as Amazon or eBay.

 

Digital Downloads: E-commerce allows for the sale of digital products such as music, software, and e-books.

 

Business-to-Business (B2B): E-commerce allows businesses to purchase products and services from other businesses online.

 

Mobile Commerce: E-commerce has expanded to mobile devices, allowing customers to make purchases using their smartphones or tablets.

 

Social Commerce: Social media platforms, such as Facebook and Instagram, have integrated e-commerce features, allowing businesses to sell products directly to customers through their social media presence.

 

Subscription Services: E-commerce platforms can be used to sell recurring services, such as monthly subscription boxes or online memberships.

 

Auction Sites: E-commerce platforms can be used for online auctions, such as eBay, where buyers can bid on items for sale.

 

Overall, e-commerce has revolutionized the way businesses and customers interact, providing more convenience and accessibility for both parties.

 

HISTORY OF E-COMMERCE

 

The history of e-commerce can be traced back to the early days of the internet, when early adopters of the technology began exploring ways to use it to buy and sell goods and services. One of the earliest examples of e-commerce was the sale of books through Amazon.com, which was founded in 1994 as an online bookstore. Over the following years, the growth of the internet and advancements in technology led to the rapid expansion of e-commerce, with businesses of all sizes leveraging the technology to reach new customers, streamline their operations, and improve the overall customer experience. Today, e-commerce has become a multi-trillion dollar industry, with online sales accounting for a significant portion of retail sales around the world.

 

ELEMENTS OF E-COMMERCE

 

The elements of e-commerce include:

 

Online marketplace: A platform where buyers and sellers can interact and transact with each other.

 

Payment system: A secure payment system to enable transactions to take place online.

 

Shopping cart: A virtual cart where customers can add items for purchase.

 

Inventory management: A system to manage and track the availability of products and services.

 

Shipping and delivery: A system to manage and process orders, shipping and delivery of products.

 

Customer service: A system to handle customer inquiries, complaints and provide support.

 

Marketing and advertising: A system to reach out to customers and promote products and services.

 

Mobile commerce: The ability to conduct e-commerce transactions using mobile devices.

 

Social commerce: The use of social media platforms to conduct e-commerce transactions.

 

These elements work together to provide a seamless e-commerce experience for customers, and to help businesses manage and grow their online sales.

 

FUNCTIONS/BENEFITS/IMPORTANCE/NEED OF E-COMMERCE

 

E-commerce refers to the buying and selling of goods and services over the internet. The functions, benefits, importance and need of e-commerce are:

 

Functions:

 

E-commerce provides a platform for businesses to reach a wider audience and increase their customer base.

It enables customers to purchase products and services from the comfort of their homes.

E-commerce provides real-time data, analytics, and insights to businesses to better understand their customers and make informed decisions.

Benefits:

 

Convenience: E-commerce provides the ability to shop 24/7, without having to physically visit a store.

 

Wide Selection: E-commerce offers a wide range of products and services, allowing customers to compare and choose the best options.

 

Lower Costs: Online retailers often have lower overhead costs, which they pass on to customers in the form of lower prices.

 

Importance:

 

Economic Growth: E-commerce has revolutionized the way businesses operate, leading to increased economic growth and job creation.

 

Customer Satisfaction: E-commerce provides a convenient and seamless shopping experience, resulting in higher customer satisfaction.

Increased Competition: E-commerce has leveled the playing field, allowing small businesses to compete with larger ones.

 

Need:

 

Changing Consumer Behaviors: With the rise of mobile and internet usage, consumers are increasingly looking for convenient, online shopping options.

Globalization: E-commerce allows businesses to reach a global audience, thereby increasing their reach and potential for growth.

 

Technological Advancements: The continued advancement of technology has made it possible for businesses to efficiently manage and grow their online presence.

 

1. Benefits to customers

 

of e-commerce:

 

Convenience: E-commerce allows customers to shop from the comfort of their own homes, at any time of the day or night.

 

Wide Selection: Online shopping offers a wider range of products, including items that may not be available in local stores.

 

Competitive Pricing: E-commerce websites often offer competitive pricing, as they have lower overhead costs compared to physical stores.

 

Reviews and Ratings: Online shoppers can easily access customer reviews and ratings, which can help them make informed purchasing decisions.

 

Personalization: E-commerce websites can use customer data to personalize their shopping experience and suggest products that may interest them.

 

Fast Delivery: Many e-commerce websites offer fast shipping and delivery options, so customers can receive their purchases quickly.

 

2. ADVANTAGE TO ORGANIZATIONS

 

Advantages to organizations using e-commerce include:

 

Increased reach: E-commerce allows organizations to reach a wider market, including customers in different countries.

 

24/7 availability: Online stores are open 24/7, allowing customers to make purchases at any time.

 

Lower costs: E-commerce eliminates the need for physical stores, reducing costs such as rent, utilities, and staffing.

 

Improved efficiency: Automated systems and processes in e-commerce can increase efficiency, reduce errors and speed up transactions.

 

Increased sales: By providing customers with a convenient and accessible shopping experience, e-commerce can increase sales and revenue.

 

Better customer data: E-commerce collects data about customer preferences, behaviors, and purchases, which can be used to improve marketing and sales efforts.

 

Better supply chain management: E-commerce can improve supply chain management by providing real-time visibility into inventory levels and facilitating direct communication with suppliers.

 

Overall, e-commerce provides organizations with a flexible, cost-effective and scalable way to reach customers and grow their business.

 

3. BENEFITS TO THE SOCIETY

 

The benefits of e-commerce to society include:

 

Increased Convenience: E-commerce allows customers to shop and make purchases from the comfort of their own homes, 24/7.

 

Greater Accessibility: E-commerce websites and mobile apps provide access to a wider range of products and services, regardless of physical location.

 

Enhanced Competition: E-commerce platforms allow small businesses and startups to compete with larger companies, increasing competition and providing customers with more choice.

 

Improved Delivery: E-commerce platforms often have faster and more efficient delivery systems, providing customers with quicker access to their purchased items.

 

Increased Employment Opportunities: E-commerce creates new job opportunities in fields such as online marketing, web design, and customer service.

 

Boosted Economic Growth: E-commerce contributes to economic growth by providing a new channel for businesses to reach customers, leading to increased revenue and economic activity.

 

LIMITATIONS OF E- COMMERCE

 

The limitations of e-commerce include:

 

Security concerns: Online transactions are vulnerable to hacking and fraud, which can compromise the security of personal and financial information.

Lack of human interaction: E-commerce lacks the personal touch and face-to-face interaction of traditional retail, which can impact customer satisfaction.

Limited product information: Online product descriptions and images may not provide enough information for customers to make informed decisions.

Technical problems: Technical difficulties, such as slow loading times or website crashes, can impact the customer experience and discourage online shopping.

Delivery and return issues: Shipping and handling costs, as well as the inconvenience of returns and exchanges, can deter customers from shopping online.

Digital divide: Not everyone has access to the internet, which limits the reach and potential customer base of e-commerce businesses.

 

E-COMMERCE PRACTICES VS.TRADITIONAL PRACTICES

 

E-commerce practices are different from traditional commerce practices in several ways. Some of the key differences include:

 

Convenience: E-commerce allows customers to shop from the comfort of their homes or office, without the need to physically visit a store.

 

Increased access to information: In e-commerce, customers can access a wealth of information about products and services, including reviews and ratings, before making a purchase.

 

Speed and efficiency: Transactions in e-commerce are often processed much faster than traditional commerce, with orders being fulfilled and delivered quickly.

 

Global reach: E-commerce eliminates geographical barriers, allowing businesses to reach customers from all over the world.

 

Personalization: E-commerce can be more personalized, with targeted advertisements and recommendations based on customer preferences and past purchases.

 

In contrast, traditional commerce practices typically involve a physical store, face-to-face interactions with sales representatives, and limited access to product information. However, traditional commerce may offer a more hands-on experience, allowing customers to touch, feel and try products before making a purchase.

 

SCOPE OF E-COMMERCE

 

The scope of e-commerce refers to the potential opportunities and growth areas for e-commerce businesses. It covers various aspects of e-commerce such as buying and selling products and services, conducting financial transactions, providing customer support, and marketing activities. Some of the areas in which the scope of e-commerce is expanding include mobile commerce, social commerce, cloud computing, and digital marketing. The increasing use of the internet and the proliferation of mobile devices has also broadened the reach of e-commerce, making it accessible to a wider audience. The growth of e-commerce has also created new business models and opportunities, such as online marketplaces, subscription services, and online shopping platforms.

 

BASIC MODELS/TYPES OF E-COMMERCE

 

E-commerce refers to the buying and selling of goods and services over the internet. There are several basic models or types of e-commerce, including:

 

Business-to-Consumer (B2C): This model involves businesses selling products directly to consumers through an online platform.

 

Consumer-to-Consumer (C2C): This model refers to individuals selling goods and services to other individuals, such as through an online marketplace.

 

Business-to-Business (B2B): This model involves businesses selling products and services to other businesses, typically through electronic data exchange.

 

Consumer-to-Business (C2B): This model refers to consumers offering goods or services to businesses, such as through a bidding process on a project management platform.

 

Business-to-Government (B2G): This model involves businesses selling products and services to government organizations.

 

Government-to-Consumer (G2C): This model involves government organizations providing services directly to consumers, such as through online portals for tax payments and license renewals.

 

PROXY SERVICES

 

A proxy service is an intermediary entity that acts as a middleman between a client and a server. In the context of e-commerce, a proxy service may be used to provide additional security, privacy, or accessibility for online transactions. The proxy service may perform functions such as filtering out unwanted traffic, encrypting data transmitted between the client and the server, or providing access to restricted resources on the server. For example, an e-commerce website may use a proxy service to filter out traffic from malicious bots, protect customer data transmitted over the internet, or allow customers to access the site using a virtual private network (VPN).

 

Processing of information in E-business

 

The processing of information in e-business involves the collection, storage, and analysis of data to make informed decisions and improve business operations. This information can come from a variety of sources, such as customer data, sales data, marketing data, and website analytics. The data is then processed through various software and technologies, such as customer relationship management (CRM) systems, data warehousing and mining, and business intelligence tools. The processed information is used for tasks such as customer segmentation, market analysis, and product development. The goal is to help e-businesses make informed decisions and improve their overall performance.

 

Batch Processing

 

Batch Processing is a computer programming method where a large amount of data is processed in groups, or "batches", rather than being processed one record at a time. The process is usually initiated by a scheduling program, which runs at a specified time and executes a series of jobs in a specific sequence. Batch Processing is used to automate repetitive and time-consuming tasks, such as data backups, data entry, data manipulation, and report generation.

For example, a company might use batch processing to generate a monthly report on sales. The data from the company's sales database is processed in a batch and a report is generated, which is then sent to management for review. This process is much faster and more efficient than manually generating the report, and reduces the risk of human error.

Batch Processing is particularly useful when dealing with large amounts of data, as it allows for efficient and fast processing. The method can also handle complex operations, such as sorting and aggregating data, and it can be easily integrated into a company's existing IT infrastructure. However, batch processing is not well-suited to real-time processing, as it operates on a set schedule and may not be able to process data as soon as it becomes available.

 

Real-time processing

 

Real-time Processing is a type of data processing where transactions are processed as they occur, without any delay. In other words, it is a process where transactions are processed immediately and the results are available immediately. Real-time processing is used in various applications such as online payment systems, real-time stock trading, and online gaming. In these applications, transactions must be processed quickly to ensure that the results are available in real-time, for the users. Real-time processing requires high processing power and fast communication networks, to ensure that the transactions are processed quickly. This type of processing helps organizations to make informed decisions quickly, improve customer satisfaction and increase the efficiency of operations.

 

PRECAUTIONS FOR SECURE E-COMMERCE

 

Precautions for Secure E-commerce:

 

Strong Passwords: Use strong passwords containing a combination of letters, numbers, and symbols for all your e-commerce accounts and change them regularly.

 

Use Secure Payment Options: Always use secure payment options like PayPal or secure credit card processing services to ensure the safety of your personal and financial information.

 

SSL Certificates: Look for e-commerce websites that have SSL (Secure Socket Layer) certificates, which encrypt information transmitted between the customer and the website.

 

Avoid Public Wi-Fi: Avoid using public Wi-Fi networks for online shopping or banking transactions as they may not be secure.

 

Keep Your Computer Secure: Keep your computer secure by installing anti-virus and anti-malware software and keeping it updated.

 

Check the Website's Privacy Policy: Read the website's privacy policy to ensure they are committed to protecting your personal and financial information.

 

Be Careful with Email Requests: Be cautious of email requests asking for personal or financial information, especially if you did not initiate the request.

 

Verify the Website's Identity: Check the website's identity before entering any personal or financial information by looking for a padlock symbol in the address bar or a URL that starts with "https".

 

Keep Records: Keep records of all your online transactions, including the date, the website, and the amount, for your own protection.

 

By taking these precautions, you can ensure that your e-commerce transactions are secure and protect your personal and financial information from being compromised.

 

Demonetization and its impact on e-business

 

Demonetization refers to the sudden withdrawal of a certain currency denomination as legal tender. This can have significant impact on e-business, as it can directly affect the purchasing power of consumers, and hence their ability to transact online.

In India, for example, the government's demonetization in 2016 resulted in a temporary cash crunch, which made it difficult for people to pay for their online purchases. This had a significant impact on e-commerce companies, which saw a drop in sales and an increase in abandoned carts.

Additionally, demonetization can also impact the online payment systems that are used for e-commerce transactions. If the currency being demonetized is widely used as a means of payment in these systems, it can cause confusion and uncertainty, and may result in a decrease in trust in these systems.

Overall, demonetization can have a significant impact on e-business, and companies need to be prepared to adapt and adjust to changing conditions in order to continue to thrive. This may include diversifying their payment methods, offering alternative payment options, and ensuring that they have robust systems in place to protect against fraud and security breaches.

 

Effect of denomination of currency notes on e-business

 

The demonetization of currency notes is a process of discontinuing the use of old currency notes and replacing them with new ones. In the context of e-business, demonetization has had both positive and negative effects.

 

Positive effects:

 

Increased usage of digital payment methods: With the shortage of cash in circulation, people have been forced to switch to digital payment methods, leading to an increase in the usage of e-wallets, mobile banking, and online payment gateways.

Boost to e-commerce industry: The increase in the use of digital payment methods has led to a corresponding boost in the e-commerce industry.

Increased transparency: With the shift to digital transactions, it has become easier to track and trace financial transactions, leading to increased transparency in the system.

Negative effects:

 

Initial disruptions: The sudden discontinuation of the old currency notes caused initial disruptions in the market as people struggled to exchange old notes for new ones. This led to a temporary slowdown in the e-commerce industry.

Impact on small businesses: Small businesses that relied heavily on cash transactions were badly affected by the demonetization.

Technical issues: The sudden surge in digital transactions led to technical issues and congestion in the digital payment systems, causing inconvenience to customers.

In conclusion, while demonetization has had its share of challenges, its long-term impact on e-business is expected to be positive.

 

Answer the following questions in 1-15 words. Each question carries one mark.

 

Q.1. What stands for B2C?

Ans. B2C stands for Business-to-Consumer, which refers to e-commerce transactions between a business and an end consumer.

 

Q.2. What stands for B2B?

Ans. B2B stands for Business-to-Business, it refers to transactions between two businesses, such as wholesalers, suppliers, or manufacturers, rather than between a business and an individual consumer.

 

Q.3. What stands for C2C?

Ans. C2C stands for Consumer-to-Consumer. It refers to a type of e-commerce transaction in which individuals buy and sell goods and services directly to each other, usually through an online marketplace or platform.

 

Q.4. What do you mean by EDI?

Ans. EDI stands for Electronic Data Interchange, a standard format for exchanging business data electronically between organizations. EDI replaces traditional paper-based methods of communication, such as fax and mail, with digital transmission of data between computer systems. The EDI standard defines the structure, content, and format of messages exchanged between trading partners, allowing for seamless and automated data exchange. EDI is widely used in various industries, such as finance, healthcare, retail, and logistics, to improve data exchange efficiency, reduce errors and processing times, and enhance supply chain management.

 

Q.5. Where can EDI be use?

Ans. Electronic Data Interchange (EDI) can be used in a variety of industries and organizations for exchanging business data electronically between two organizations. It is commonly used in supply chain management, healthcare, finance, and government for the exchange of invoices, purchase orders, shipping notices, and other types of business transactions. By using EDI, organizations can reduce the time and costs associated with manual data entry, improve accuracy and security, and streamline their business processes.

 

Q.6. What is meant by e-commerce?

Ans. E-commerce refers to the buying and selling of goods or services over the internet, typically through websites and online marketplaces.

 

Q.7. What are the various components of e-commerce?

Ans. The various components of e-commerce include:

 

1. Website and Online Storefronts

2. Payment Systems

3. Shopping Carts

4. Customer Relationship Management (CRM) Systems

5. Inventory Management Systems

6. Order Management Systems

7. Logistics and Shipping

8. Marketing and Promotion

9. Customer Service and Support

10. Security and Data Protection.

 

Q.8. Which is the most common type of e-commerce?

Ans. The most common type of e-commerce is B2C (Business-to-Consumer), where businesses sell products or services directly to consumers online.

 

Q.9. What is demonetization?

Ans. Demonetization is the act of stripping a currency unit of its status as legal tender. It involves the replacement of a currency with another currency or the discontinuation of the use of a specific currency. This is often done by governments to control inflation, counterfeit currency, or other issues with the current currency. Demonetization usually causes a temporary shortage of the currency being replaced, as people rush to exchange their old currency for the new one.

 

The answer to these questions should be given in 5-10 lines.

 

Q.1. Define E-Commerce?

Ans. E-commerce refers to the buying and selling of goods and services over the internet, using electronic devices such as computers, smartphones, and tablets. It involves the use of electronic payment systems, electronic data interchange (EDI), and other electronic technologies to facilitate transactions between businesses and customers.

 

Q.2. What are the types of E-Commerce?

Ans. There are four main types of e-commerce:

 

B2C (Business-to-Consumer) - Transactions between businesses and consumers

B2B (Business-to-Business) - Transactions between businesses

C2C (Consumer-to-Consumer) - Transactions between consumers through platforms like eBay or Amazon

C2B (Consumer-to-Business) - Transactions where consumers sell goods or services to businesses.

 

Q.3. What is B2C Commerce?

Ans. B2C stands for Business-to-Consumer e-commerce, where businesses sell their products or services directly to consumers over the internet. This type of e-commerce involves retail sales of products or services to individual customers through websites, mobile applications, or other online platforms. B2C e-commerce typically focuses on consumer products, such as clothing, electronics, beauty products, or groceries.

 

Q.4. What is B2B Commerce?

Ans. B2B (Business-to-Business) Commerce refers to electronic transactions between companies, rather than between a company and individual consumer. It involves the sale of goods, services, or information from one company to another company, through various online platforms such as e-marketplaces, electronic data interchange (EDI) systems, or private websites. B2B e-commerce transactions usually involve larger transactions and higher volumes of goods, and are aimed at improving efficiency, reducing costs, and increasing speed in business dealings.

 

Q.5. What is C2C Commerce?

Ans. C2C (Consumer-to-Consumer) Commerce refers to the transactions that occur between two individuals or consumers. It is a type of e-commerce where the buyers and sellers are both consumers, and the transactions take place without intermediaries or middlemen. Examples of C2C commerce platforms are eBay, Amazon Marketplace, etc. where individuals can buy and sell goods and services to each other.

 

Q.6. Explain P2P model?

Ans. P2P, or Peer-to-Peer, is a type of e-commerce model where individuals can transact directly with each other, without the need for intermediaries like businesses or marketplaces. In this model, the individuals are the sellers and exchange goods, services, or digital products with each other directly. Examples of P2P e-commerce include eBay, Craigslist, and Airbnb. This model is gaining popularity because it eliminates the need for middlemen and often results in lower prices for both buyers and sellers.

 

Q.7. What the meaning of E-Governance?

Ans. E-Governance refers to the use of information and communication technology (ICT) to improve government services and enhance transparency, accountability and citizen engagement in the decision-making process. The goal of e-Governance is to provide citizens with efficient, convenient and accessible public services, as well as to improve the overall effectiveness and efficiency of the government. This is achieved by automating government processes, streamlining communication between citizens and government agencies, and increasing public access to government information and services.

 

Q.8. Write any two benefits/uses of e-commerce?

Ans. Increased Convenience: E-commerce offers customers the ability to shop from the comfort of their homes or from anywhere with an internet connection, at any time of day. This eliminates the need for physical travel to a store and saves time for the customer.

 

Wider Reach: E-commerce provides businesses with a platform to reach a larger customer base, both locally and globally, without the limitations of physical storefronts. This allows for increased sales and profits for the business.

 

Q.9. Give any two differences between E-Commerce an Traditional Commerce?

Ans. Location: E-commerce operates through the internet, making it possible for people to purchase goods and services from anywhere in the world, while traditional commerce operates through brick and mortar stores and is limited by geographical location.

 

Availability: E-commerce is available 24/7, allowing customers to purchase items at any time, while traditional commerce has set business hours and is closed during certain times of the day and week.

 

Payment Methods: E-commerce allows for a wider range of payment options, including online payment systems, credit and debit cards, and electronic money transfers, while traditional commerce mostly relies on cash transactions.

 

Customer Service: E-commerce relies heavily on online customer service, such as live chat and email, while traditional commerce relies on in-person customer service, such as sales associates.

 

Q.10. Write any two problems in the area of E-Commerce?

Ans. Security Concerns: One of the biggest challenges in e-commerce is ensuring the security of sensitive information such as credit card numbers, personal information, and financial data. Hackers and cybercriminals constantly target e-commerce sites and can easily steal sensitive information if the site's security measures are not adequate.

 

Lack of Trust: Another challenge in e-commerce is building trust with consumers. As e-commerce transactions take place online and typically involve shipping goods to customers, consumers may be hesitant to provide sensitive information or purchase goods online. They may be worried about fraud, theft, or the possibility of receiving defective or low-quality products. Building trust is critical for the success of e-commerce and requires companies to implement measures to protect consumers' information and provide transparent and efficient customer service.

 

Q.11. What are the reasons of doing business through E-Commerce? Give any two reasons?

Ans. Two reasons for conducting business through e-commerce are:

 

Increased Reach: E-commerce allows companies to reach a global customer base with a click of a button, thereby expanding their customer base and increasing their sales.

 

Convenience: E-commerce provides a convenient and easy shopping experience for customers, as they can shop from the comfort of their own home without having to physically visit a store. This can lead to increased customer satisfaction and loyalty.

 

Q.12. What are proxy services?

Ans. Proxy services are intermediary servers that act as a gateway between a client computer and the internet. They are used to provide security, anonymity, and access control to online resources and services. When a client makes a request to access a web page or other online resource, the request is first sent to the proxy server, which then makes the request on behalf of the client. The response is then sent back through the proxy server to the client, providing an extra layer of security and privacy. This makes proxy services useful for users who want to bypass firewalls or content filters, access restricted websites, or hide their online activities from monitoring.

 

Q.13. Demerits of E-Commerce?

Ans. E-Commerce has some demerits or disadvantages which include:

 

Security Concerns: One of the major concerns for e-commerce is the security of sensitive information like credit card details and personal information. This can lead to identity theft and financial frauds.

 

Technical Issues: Technical issues like website downtime, slow loading times, and compatibility issues can cause frustration for customers and lead to loss of sales.

 

Limited Customer Interaction: E-commerce transactions lack the personal touch and interaction of traditional brick-and-mortar shopping, which can lead to dissatisfaction among customers.

 

Dependence on Technology: E-commerce is heavily reliant on technology and the internet, making it vulnerable to power cuts, internet outages, and other technical difficulties.

 

Shipping and Delivery Challenges: Shipping and delivery can pose a significant challenge for e-commerce businesses, especially in terms of cost, time, and reliability.

 

Competition: The e-commerce industry is highly competitive, making it difficult for new businesses to establish themselves and compete with established players.

 

Q.14. What is Batch Processing?

Ans. Batch processing is a method of processing large volumes of data in a single, non-interactive operation. This type of processing is usually performed at a specific time or during a specific time period and is used to perform large-scale, routine tasks such as updating a database, generating reports, or processing transactions. Batch processing is commonly used in a variety of applications, including accounting, payroll, and inventory management. The main advantage of batch processing is that it can handle large amounts of data efficiently and accurately, reducing the amount of manual work involved.

 

Q.15. What is Real Time Processing?

Ans. Real-time processing refers to a type of information processing system in which the computer processes data as soon as it is received, without waiting for a batch of data to be collected. In real-time processing, data is processed immediately, and the results are provided without delay. This allows for rapid response to changing conditions and the ability to make timely decisions based on the most current information available. Examples of real-time processing include online financial transactions, real-time stock quotes, and real-time weather updates.

 

Q.16. What do you understand by G2b?

Ans. G2B (Government-to-Business) refers to a type of e-commerce transaction in which government organizations interact with businesses over the internet. The goal of G2B is to make government processes more efficient, transparent, and accessible for businesses. This may involve the government providing services such as procurement, payments, or licensing to businesses through its website, or it may involve businesses accessing government data or information. The objective is to streamline and automate government processes, reduce costs and improve the speed and quality of service delivery to businesses.

 

Q.17. Briefly explain G2c?

Ans. G2C stands for Government-to-Citizen, which refers to the use of technology by government organizations to provide online services and information directly to citizens. This model is aimed at improving the efficiency, transparency, and accessibility of government services, and providing citizens with more convenient and secure ways to interact with government agencies. Some examples of G2C services include online tax filing, passport and visa applications, and access to public records.

 

Q.18. What is G2G?

Ans. G2G stands for Government-to-Government. It refers to the digital interactions and transactions that occur between different government agencies or departments, either within a single country or between different countries. The purpose of G2G e-commerce is to streamline and automate various administrative processes and to improve communication, collaboration and information sharing among different government entities. Examples of G2G e-commerce activities include procurement, revenue collection, inter-agency collaboration, and the exchange of data and information between different government agencies.

 

The answer of these questions should be given in 15-20 lines.

 

Q.1. What do you mean by e-commerce? Write any 4 benefits of e-commerce.

Ans. E-commerce refers to the buying and selling of goods and services over the internet. The four benefits of e-commerce are:

 

Convenience: E-commerce allows consumers to shop from anywhere, at any time, without having to physically visit a store.

 

Increased reach: E-commerce websites and platforms offer businesses the opportunity to reach a global audience, potentially increasing their customer base.

 

Reduced costs: By reducing the need for physical storefronts and inventory storage, e-commerce can reduce the overall costs of doing business.

 

Improved data collection and analysis: E-commerce systems often collect data on customer behavior and purchasing patterns, allowing businesses to gain valuable insights and make informed decisions.

 

Q.2. Explain features of e-commerce?

Ans. E-commerce refers to the buying and selling of goods and services through an electronic medium, usually the Internet. The following are the key features of e-commerce:

 

Convenience: E-commerce offers the convenience of shopping from anywhere, at any time, and with just a few clicks.

 

Access to a Wider Market: E-commerce opens up opportunities for businesses to reach customers globally, beyond geographical barriers.

 

Personalization: E-commerce allows businesses to personalize the shopping experience for customers by using data and analytics to suggest products based on their browsing and purchase history.

 

Cost-effective: E-commerce reduces the cost of doing business as it eliminates the need for physical stores and inventory management.

 

Faster Processing: E-commerce transactions are processed much faster than traditional commerce transactions, allowing for quick and efficient order fulfillment.

 

24/7 Availability: E-commerce businesses are open 24 hours a day, seven days a week, and can reach customers anytime, anywhere.

 

Automation: E-commerce allows for the automation of several processes, such as order processing, payment processing, and inventory management, making it more efficient.

 

Q.3. Give any four differences between e-commerce and traditional commerce?

Ans. Convenience: E-commerce provides 24/7 convenience for customers to shop from anywhere, whereas traditional commerce has limited operating hours and is dependent on physical location.

 

Reach: E-commerce has a wider reach as it can cater to customers globally, while traditional commerce is limited to a local market.

 

Personalization: E-commerce provides personalized recommendations and advertisements based on customer behavior and data, while traditional commerce relies on in-store promotions and customer service interactions.

 

Cost: E-commerce eliminates the need for physical storefronts and reduces overhead costs, making it more cost-effective for businesses compared to traditional commerce.

 

Speed and Efficiency: E-commerce transactions can be processed faster and more efficiently due to automated systems, while traditional commerce can be hindered by manual processes and a lack of technology.

 

Data and Analytics: E-commerce provides access to valuable data and analytics on customer behavior and sales trends, while traditional commerce relies on less robust reporting mechanisms.

 

Q.4. Explain elements of e-commerce.

Ans. The elements of e-commerce are the components that form the foundation of any e-commerce business. These elements are:

 

Website: The website is the primary channel for an e-commerce business to reach its customers and sell its products or services online.

 

Shopping Cart: A shopping cart is a software application that enables customers to add products or services to a virtual cart, and then make a payment for the items in the cart.

 

Payment Gateway: A payment gateway is a secure platform that enables merchants to process payments from customers. This is a critical component for e-commerce businesses, as it ensures the safe and secure transfer of funds between the customer and the merchant.

 

Inventory Management System: An inventory management system is a software tool that helps e-commerce businesses manage their stock levels and product information. This system helps businesses keep track of products, manage stock levels, and monitor sales trends.

 

Delivery and Logistics: A reliable and efficient delivery and logistics system is crucial for e-commerce businesses, as it enables them to fulfill orders and get products to customers quickly and cost-effectively.

 

These elements are essential for building an effective e-commerce platform, and they play a key role in driving sales and building customer loyalty.

 

Q.5. What are the benefits of e-commerce to organizations?

Ans. There are several benefits that organizations can derive from e-commerce:

 

Increased Reach: E-commerce allows organizations to reach a global audience and sell their products or services to customers located anywhere in the world.

 

Improved Customer Experience: E-commerce provides customers with a convenient and efficient shopping experience, enabling them to purchase products or services quickly and easily.

 

Reduced Costs: By automating many processes, e-commerce can help organizations to reduce costs and improve their bottom line.

 

Increased Sales and Revenues: E-commerce can help organizations to increase their sales and revenues by providing customers with easy access to their products and services.

 

Improved Data Collection and Analytics: E-commerce allows organizations to collect and analyze data on customer behavior and preferences, which can be used to improve marketing strategies and enhance customer satisfaction.

 

Better Inventory Management: E-commerce provides organizations with real-time visibility into their inventory levels, helping them to manage stock more effectively and reduce waste.

 

Increased Efficiency: E-commerce helps organizations to streamline processes and reduce manual labor, leading to increased efficiency and productivity.

 

Q.6. Explain working of e-commerce?

Ans. E-commerce, also known as electronic commerce, is the buying and selling of goods and services through the internet. The basic process of e-commerce working involves the following steps:

 

Website Development: Organizations set up an e-commerce website, which acts as the online store for their customers. The website should be user-friendly, secure, and optimized for search engines.

 

Product Listing: Organizations list their products or services on the e-commerce website with detailed descriptions, images, and pricing information.

 

Customer Acquisition: Organizations use various digital marketing strategies to attract customers to their website, including search engine optimization (SEO), social media marketing, and email marketing.

 

Payment Processing: When a customer makes a purchase, the payment is processed through a secure payment gateway. The payment gateway acts as a bridge between the customer's bank and the merchant's bank.

 

Order Fulfillment: Once the payment is processed, the order is fulfilled, which may involve picking and packing the product, and shipping it to the customer.

 

Customer Service: Organizations should have a system in place to handle customer queries and complaints, and provide after-sales support.

 

These steps form the basic process of e-commerce, and organizations can add or remove steps depending on their specific requirements.

 

Q.7. What is history of e-commerce?

Ans. The history of e-commerce can be traced back to the 1960s when electronic data interchange (EDI) was first used to transfer business documents between companies. However, e-commerce as we know it today, where consumers can purchase goods and services online, emerged in the 1990s with the growth of the Internet. In 1994, the first online shopping website, Amazon, was launched, followed by eBay in 1995. Over the next few years, more and more retailers started to sell their products online, and e-commerce became an increasingly important part of the global economy. Today, e-commerce is a multibillion-dollar industry and continues to grow as more and more consumers shift towards online shopping.

 

Q.8. State the limitations of e-commerce?

Ans.  E-commerce, or electronic commerce, refers to the buying and selling of goods or services over the internet. It has become increasingly popular in recent years, with more and more businesses adopting online platforms to reach customers and expand their operations. While e-commerce has many benefits, such as convenience, increased reach, and reduced costs, there are also some limitations that must be taken into account.

 

Lack of personal touch: One of the biggest limitations of e-commerce is the lack of personal interaction between buyers and sellers. Customers cannot see or touch the product before purchasing it, and they may not be able to receive personalized advice or support from a salesperson. This can lead to dissatisfaction or misunderstandings, particularly if the customer receives a product that does not meet their expectations.

 

Security concerns: Another limitation of e-commerce is the potential for security breaches or fraud. Customers may be hesitant to provide personal information such as credit card numbers, as there is always a risk that this information could be stolen or misused. Businesses must take extra steps to ensure the security of their customers' information, which can be costly and time-consuming.

 

Technical issues: E-commerce relies heavily on technology, and any technical issues such as server crashes or website downtime can have a significant impact on sales and customer satisfaction. Businesses must invest in reliable infrastructure and maintenance to minimize the risk of technical issues.

 

Shipping and logistics: While e-commerce has made it easier to reach customers in different locations, shipping and logistics can still be a challenge. Businesses must ensure that they have efficient and cost-effective shipping solutions in place, and they may need to navigate complex international regulations and customs processes.

 

Lack of physical presence: E-commerce businesses do not have a physical presence in the same way as traditional brick-and-mortar stores. This can make it more difficult to establish brand recognition and trust, particularly for new businesses. It can also limit the types of products that can be sold, as certain items may require a physical store or warehouse.

 

Cultural and linguistic barriers: E-commerce businesses that operate in multiple countries or regions may need to navigate cultural and linguistic barriers. This can include language differences, currency exchange rates, and different legal and regulatory requirements. Businesses must be able to adapt to these differences to effectively serve customers in different regions.

 

In conclusion, while e-commerce offers many advantages, it also has limitations that must be taken into consideration. These limitations include the lack of personal interaction, security concerns, technical issues, shipping and logistics challenges, lack of physical presence, and cultural and linguistic barriers. Businesses that are able to effectively navigate these limitations can still thrive in the e-commerce landscape.

 

Q.9. Write any four precautions to be taken in the area of e-commerce?

Ans. E-commerce has become an increasingly popular way for businesses to sell their products and services online. While there are many benefits to e-commerce, such as increased sales and expanded customer reach, there are also several precautions that businesses and consumers should take to protect themselves from potential risks. Here are four important precautions to consider when dealing with e-commerce:

 

Secure payment processing: One of the biggest concerns with e-commerce is the risk of fraud and identity theft. To mitigate this risk, it's important to ensure that payment processing is secure. This can be done by using a trusted payment gateway, such as PayPal or Stripe, that encrypts all financial data and has strong security measures in place to protect against fraud.

 

Protect personal information: E-commerce transactions often require customers to provide personal information, such as their name, address, and credit card number. It's important to ensure that this information is protected and kept confidential. Businesses should use secure servers and encryption to protect customer data and ensure that it is not shared with third parties without consent.

 

Verify the legitimacy of online sellers: With the rise of online marketplaces and third-party sellers, it's important to verify the legitimacy of online sellers before making a purchase. Consumers should check seller ratings, reviews, and feedback to ensure that they are dealing with a reputable seller. Businesses should also conduct due diligence when working with new suppliers or vendors to ensure that they are legitimate and trustworthy.

 

Read the terms and conditions: When using e-commerce platforms, it's important to read and understand the terms and conditions. This includes understanding the refund policy, delivery times, and any fees or charges that may be associated with the transaction. Consumers should also be aware of any hidden fees or charges that may be added to the purchase price, such as shipping or handling fees.

 

Overall, e-commerce can be a convenient and efficient way to buy and sell products and services online. However, it's important to take precautions to protect personal and financial information, verify the legitimacy of online sellers, and understand the terms and conditions of any e-commerce transaction.

 

Q.10. Explain the origin of e-commerce?

Ans. Electronic commerce, commonly known as e-commerce, refers to the buying and selling of products and services over the internet. E-commerce has revolutionized the way businesses operate and has become an integral part of modern-day commerce. The origin of e-commerce can be traced back to the early days of the internet.

 

The first known online transaction took place in 1994 when a man named Dan Kohn sold a Sting CD to a friend over the internet using a credit card. However, the concept of e-commerce started much earlier. In 1979, a British inventor named Michael Aldrich connected a television set to a computer and a phone line, creating what he called “teleshopping”. He used this technology to connect with supermarkets and allow customers to purchase groceries from their homes. Aldrich’s invention was the first step towards the development of e-commerce.

 

In the 1980s, several companies, including CompuServe, Prodigy, and America Online, introduced online services that provided users with access to news, weather, and other information. These services also allowed users to communicate with each other through chat rooms and email. However, e-commerce was still in its infancy at this stage.

 

In the 1990s, the World Wide Web was developed, making it easier to access and navigate the internet. This led to the creation of online marketplaces such as Amazon and eBay, which allowed users to buy and sell products online. In 1995, Amazon launched as an online bookstore, and in 1998, eBay went public, becoming the first e-commerce company to achieve a billion-dollar valuation.

 

The early 2000s saw a significant growth in e-commerce, with the development of secure payment systems and the introduction of mobile devices. E-commerce began to expand beyond just buying and selling products to include online banking, online auctions, and online ticketing.

 

Today, e-commerce has become an integral part of modern-day commerce, and it continues to evolve with advancements in technology. The origin of e-commerce may be traced back to the early days of the internet, but its impact on the global economy is immense and will continue to grow in the future.

 

ESSAY TYPE QUESTIONS

 

Q.1. Define e-commerce. Explain its need and importance?

Ans. E-commerce, also known as electronic commerce, refers to the buying and selling of goods and services over the internet or other digital platforms. It involves the use of electronic communication and digital technologies to conduct business transactions and exchange information between buyers and sellers.

The need for e-commerce has arisen due to the increasing use of the internet and the growing trend of online shopping. E-commerce offers several benefits over traditional brick-and-mortar stores, such as convenience, accessibility, and a wider range of products and services. With e-commerce, customers can shop from the comfort of their homes or offices, browse through a vast selection of products, and make purchases at any time of the day or night. Additionally, e-commerce offers benefits to businesses, including lower overhead costs, expanded customer reach, and increased sales potential.

The importance of e-commerce lies in its ability to transform the way businesses operate and interact with customers. E-commerce has enabled businesses to overcome geographic barriers and reach customers around the world, allowing for increased revenue and growth opportunities. E-commerce also offers businesses the ability to collect and analyze customer data, enabling them to better understand their customers' needs and preferences and tailor their products and services accordingly.

Furthermore, e-commerce has played a crucial role in the development of the digital economy, driving innovation and technological advancements in areas such as payment systems, logistics, and supply chain management. E-commerce has also created new business models and opportunities for entrepreneurs and small businesses, enabling them to compete with larger companies on a global scale.

In summary, e-commerce is a vital component of the modern economy, offering numerous benefits and opportunities for businesses and consumers alike. Its ability to connect businesses with customers, streamline transactions, and foster innovation and growth make it an essential tool for businesses of all sizes in today's digital age.

 

Q.2. What are various types of e-commerce? Explain in detail.

Ans. There are several types of e-commerce, each with its unique characteristics and business models. Here are the most common types of e-commerce:

 

Business-to-Business (B2B) E-commerce:

This type of e-commerce involves transactions between two or more businesses. B2B e-commerce is characterized by a large volume of transactions, high order values, and long-term contracts. The transactions usually take place between manufacturers, wholesalers, and distributors.

 

Business-to-Consumer (B2C) E-commerce:

This type of e-commerce involves transactions between businesses and consumers. B2C e-commerce is the most common type of e-commerce and includes online retail stores, service providers, and other businesses that sell products or services directly to consumers. B2C e-commerce is characterized by high competition, low margins, and high customer acquisition costs.

 

Consumer-to-Consumer (C2C) E-commerce:

C2C e-commerce involves transactions between consumers, where one consumer sells products or services to another consumer. This type of e-commerce is facilitated by online marketplaces such as eBay, Etsy, and Craigslist. C2C e-commerce is characterized by low transaction values, high volumes, and low entry barriers.

 

Consumer-to-Business (C2B) E-commerce:

C2B e-commerce involves transactions where consumers offer products or services to businesses. This type of e-commerce is facilitated by online marketplaces where businesses can post jobs or projects, and consumers can bid on them. C2B e-commerce is characterized by low transaction values, high volumes, and low entry barriers.

 

Business-to-Government (B2G) E-commerce:

B2G e-commerce involves transactions between businesses and government agencies. This type of e-commerce includes government procurement of goods and services from businesses, and online tax filing services. B2G e-commerce is characterized by long-term contracts, high transaction values, and complex procurement processes.

 

Consumer-to-Government (C2G) E-commerce:

C2G e-commerce involves transactions between consumers and government agencies. This type of e-commerce includes online payment of taxes, fees, and fines. C2G e-commerce is characterized by low transaction values, high volumes, and low entry barriers.

 

Mobile Commerce (M-Commerce):

M-commerce involves e-commerce transactions that take place using mobile devices such as smartphones and tablets. M-commerce has gained popularity in recent years due to the widespread use of mobile devices and the increasing availability of mobile applications.

 

In conclusion, the different types of e-commerce have their unique characteristics and business models, which cater to different types of customers and industries. It is essential for businesses to understand the various types of e-commerce to develop effective e-commerce strategies that align with their business objectives.

 

Q.3. Give differences between e-commerce and traditional commerce?

Ans. E-commerce and traditional commerce are two different ways of conducting business transactions. The main differences between them are as follows:

 

Technology: E-commerce uses internet-based technologies to conduct business transactions, while traditional commerce relies on physical transactions conducted through face-to-face interactions or via postal mail, telephone, or fax.

 

Global Reach: E-commerce has a wider global reach compared to traditional commerce, as it allows businesses to reach customers from different parts of the world, while traditional commerce has a limited reach and can only target customers in the local market.

 

Convenience: E-commerce is more convenient for customers as they can shop online anytime, anywhere, and have access to a wide range of products and services. On the other hand, traditional commerce requires customers to physically visit the store during business hours to make a purchase.

 

Cost: E-commerce is often more cost-effective for businesses as it eliminates the need for physical store infrastructure and reduces overhead costs. Traditional commerce requires businesses to have a physical store, which can be expensive to rent or purchase.

 

Payment: E-commerce allows for various payment options such as credit cards, PayPal, and online banking, while traditional commerce is often limited to cash or check payments.

 

Customer Relationship: E-commerce provides businesses with an opportunity to build long-term relationships with customers through email marketing, newsletters, and social media. Traditional commerce does not offer these kinds of direct communication channels.

 

Security: E-commerce transactions are often more secure as they are conducted through secure payment gateways and encrypted communication channels. Traditional commerce is more vulnerable to theft and fraud as cash transactions can be easily stolen.

 

Overall, e-commerce and traditional commerce have different advantages and disadvantages. While e-commerce provides convenience, global reach, and cost-effectiveness, traditional commerce offers personal interactions, immediate product satisfaction, and reliability.

 

Q.4. Explain meaning of e-commerce. Also explain scope of e-commerce.

Ans. E-commerce, also known as electronic commerce, refers to the buying and selling of goods and services using electronic means such as the internet, mobile devices, and other computer networks. It involves transactions that occur electronically, without physical contact between the buyer and seller. E-commerce encompasses a wide range of activities such as online shopping, electronic banking, online auctions, and digital content distribution.

 

The scope of e-commerce has expanded significantly over the years, thanks to advancements in technology and the growing popularity of the internet. Today, e-commerce has become an integral part of many businesses across various industries, and it has transformed the way people buy and sell goods and services.

 

The scope of e-commerce can be broadly categorized into the following areas:

 

Business to Consumer (B2C) - This refers to the type of e-commerce in which businesses sell products or services directly to individual consumers. B2C e-commerce includes online shopping websites such as Amazon, Flipkart, and eBay.

 

Business to Business (B2B) - This type of e-commerce involves transactions between businesses. In B2B e-commerce, companies sell products or services to other businesses. Examples of B2B e-commerce include online marketplaces such as Alibaba and wholesale trading platforms such as Tradeindia.

 

Consumer to Consumer (C2C) - In this type of e-commerce, consumers sell products or services directly to other consumers. C2C e-commerce includes online auction sites such as eBay and classified websites such as Craigslist.

 

Consumer to Business (C2B) - This type of e-commerce involves transactions in which individuals sell products or services to businesses. C2B e-commerce includes platforms such as freelance marketplaces and crowdsourcing platforms.

 

Government to Citizen (G2C) - This type of e-commerce involves transactions between government organizations and citizens. Examples of G2C e-commerce include online portals for paying taxes, booking appointments for government services, and accessing government information.

 

The scope of e-commerce also includes other emerging areas such as mobile commerce (m-commerce), social commerce, and collaborative commerce. M-commerce involves conducting transactions using mobile devices such as smartphones and tablets. Social commerce refers to e-commerce activities that take place on social media platforms such as Facebook and Instagram. Collaborative commerce involves transactions between individuals or businesses that collaborate to create new products or services.

In conclusion, the scope of e-commerce is constantly evolving, and it encompasses a wide range of activities that are transforming the way businesses operate and people conduct transactions. E-commerce provides various benefits such as convenience, cost-effectiveness, and global reach, making it an attractive option for businesses and consumers alike

 

Q.5. What do you mean by e-commerce? Explain its uses?

Ans. E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet or other digital channels. E-commerce has become increasingly popular over the past few decades as more and more consumers have turned to the internet to purchase products and services. E-commerce includes a range of transactions, from business-to-consumer (B2C) transactions where businesses sell directly to consumers, to business-to-business (B2B) transactions where businesses sell to other businesses.

 

Some of the uses of e-commerce include:

 

Online shopping: E-commerce allows customers to shop for products and services online, from the convenience of their own homes. Online shopping has become increasingly popular in recent years, with many consumers preferring to shop online rather than in physical stores.

 

Digital products: E-commerce also includes the sale of digital products, such as ebooks, music, and software. These products can be downloaded directly from the internet, without the need for physical distribution.

 

Online banking: Many banks now offer online banking services, allowing customers to manage their accounts, transfer funds, and pay bills online.

 

Auctions: E-commerce has also made online auctions possible, allowing consumers to bid on items from anywhere in the world.

 

B2B transactions: E-commerce also includes business-to-business transactions, where businesses buy and sell products and services to each other. This can include the purchase of raw materials, supplies, and finished products.

 

The scope of e-commerce is constantly expanding as more and more businesses and consumers turn to the internet for buying and selling products and services. With the continued growth of technology and the internet, it is likely that e-commerce will continue to be an important part of the global economy for years to come.

 

Q.6. Write features of e-commerce.

Ans. The features of e-commerce are as follows:

 

Global Reach: E-commerce offers businesses the ability to reach customers worldwide. It enables businesses to sell their products and services beyond geographical boundaries, thereby increasing their customer base.

 

24/7 Availability: E-commerce provides businesses with an opportunity to be available to customers 24 hours a day, seven days a week. This means customers can access the online store at any time that is convenient for them.

 

Convenient and Easy: E-commerce provides customers with a convenient and easy way to shop from the comfort of their homes or offices. Customers can purchase products and services with just a few clicks, without the need to physically visit a store.

 

Cost-effective: E-commerce is cost-effective compared to traditional brick-and-mortar stores. It eliminates the need for a physical storefront, reduces overhead costs, and allows businesses to offer their products at competitive prices.

 

Personalization: E-commerce allows businesses to personalize the shopping experience for their customers. By collecting customer data, businesses can create personalized product recommendations, offers, and promotions to improve customer satisfaction.

 

Secure Payment Options: E-commerce platforms provide secure payment options, making online transactions safe and reliable for both customers and businesses. They use secure encryption technology to protect customer information from hackers and cybercriminals.

 

Scalability: E-commerce platforms are scalable, meaning they can easily adapt to the changing needs of businesses as they grow. Businesses can easily add new products, expand their customer base, and introduce new features to their online store.

 

Analytics and Insights: E-commerce platforms provide businesses with real-time data and analytics about their customers and their online store performance. This data helps businesses make informed decisions about their products, promotions, and marketing strategies.

 

Multiple Channels: E-commerce allows businesses to sell their products and services through multiple channels, such as websites, social media, and mobile apps. This enables businesses to reach customers through different channels and increase their sales.

In summary, the features of e-commerce offer businesses numerous benefits that help them increase sales, improve customer satisfaction, and reduce costs.

 

Q.7. What are the elements of e-commerce? Write its working.

Ans. Elements of e-commerce:

 

Business to Business (B2B): This type of e-commerce involves transactions between two businesses or companies. For example, a manufacturer and a wholesaler.

 

Business to Consumer (B2C): This type of e-commerce involves transactions between businesses and individual consumers. For example, online shopping websites like Amazon and Flip kart.

 

Consumer to Consumer (C2C): This type of e-commerce involves transactions between individual consumers. For example, online marketplaces like eBay and Craigslist.

 

Consumer to Business (C2B): This type of e-commerce involves transactions where individual consumers sell their products or services to businesses. For example, freelance websites like Up work and Fiverr.

 

Working of e-commerce:

 

Website creation: The first step in e-commerce is creating a website that can showcase the products or services offered by a business.

 

Product or service listing: The next step is to list the products or services on the website with appropriate descriptions, prices, and images.

 

Online payments: E-commerce websites integrate secure online payment gateways to enable customers to pay for their purchases using various methods like credit/debit cards, net banking, and digital wallets.

 

Order processing: Once a customer places an order, the e-commerce website processes the order, sends an order confirmation email, and notifies the customer about the estimated delivery date.

 

Shipping and delivery: The e-commerce business ships the product to the customer’s address and provides tracking details to the customer.

 

Customer support: E-commerce businesses provide customer support services to handle any issues or queries related to the products or services offered on their website.

 

Overall, the elements of e-commerce and its working enable businesses to reach a wider audience, increase their sales, and provide convenience to their customers.

 

Q.8. explain importance/benefits and need of e-commerce.

Ans. E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. There are several important benefits and needs of e-commerce that have made it an increasingly popular method of conducting business.

 

Increased reach: E-commerce allows businesses to reach a wider audience beyond their local or regional markets. With an online presence, businesses can sell their products or services to customers anywhere in the world.

 

Convenience: E-commerce provides a convenient shopping experience for customers. They can shop from anywhere at any time and have their purchases delivered right to their doorstep.

 

Cost-effective: E-commerce can be cost-effective for businesses as it eliminates the need for physical storefronts and reduces the cost of inventory management. This allows businesses to pass on the cost savings to their customers.

 

Improved customer experience: E-commerce provides a personalized and interactive shopping experience for customers. They can browse products, read reviews, and make purchases with just a few clicks.

 

Increased sales and revenue: E-commerce has the potential to generate more sales and revenue for businesses as it allows them to reach a wider audience and sell more products.

 

Improved marketing opportunities: E-commerce provides businesses with a range of digital marketing tools to reach and engage with their target audience. This includes email marketing, social media marketing, and search engine optimization.

 

Real-time analytics: E-commerce platforms provide businesses with real-time analytics that can be used to track customer behavior, analyze sales trends, and optimize marketing strategies.

 

Enhanced competitiveness: E-commerce has leveled the playing field for small and large businesses alike, providing equal opportunities to compete in the market.

 

Overall, e-commerce has become an essential part of modern-day business as it provides numerous benefits to businesses and customers alike.

 

Q.9. Write is the meaning of e-commerce? Explain various types of e-commerce.

Ans. E-commerce, short for electronic commerce, refers to the buying and selling of goods and services through the internet or other electronic means. It involves transactions that occur online and can include business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) interactions.

 

There are several different types of e-commerce:

 

B2B (Business-to-Business) E-commerce: This type of e-commerce involves transactions between two or more businesses. It can involve the exchange of products, services, or information between companies. Examples include a manufacturer buying raw materials from a supplier or a business purchasing software from a technology vendor.

 

B2C (Business-to-Consumer) E-commerce: This type of e-commerce involves transactions between businesses and consumers. It is the most well-known type of e-commerce and includes online shopping through websites such as Amazon, Walmart, and other online retailers.

 

C2C (Consumer-to-Consumer) E-commerce: This type of e-commerce involves transactions between consumers, typically facilitated by a third-party platform. Examples include online marketplaces such as eBay, Etsy, and Craigslist where individuals can buy and sell goods to other consumers.

 

C2B (Consumer-to-Business) E-commerce: This type of e-commerce involves transactions where individuals sell their products or services to businesses. Examples include freelance writers, graphic designers, and other independent contractors who offer their services to businesses on platforms such as Upwork or Fiverr.

 

B2G (Business-to-Government) E-commerce: This type of e-commerce involves transactions between businesses and government entities. Examples include companies bidding on government contracts or providing services to government agencies.

 

Each type of e-commerce has its own unique characteristics and requirements. Understanding the differences between them is important for businesses to determine which types of e-commerce they should focus on and how to tailor their e-commerce strategies to best suit their needs.

 

Q.10. What is the meaning of e-commerce? Explain various types of e-commerce.

Ans. E-commerce refers to the buying and selling of goods and services over the internet. It involves the use of electronic means to conduct business transactions, such as the transfer of funds and the exchange of data. E-commerce has become a popular alternative to traditional commerce due to its convenience, accessibility, and global reach.

 

There are several types of e-commerce, including:

 

Business-to-Consumer (B2C) e-commerce: This involves the sale of products or services from a business to individual customers. B2C e-commerce is perhaps the most well-known type of e-commerce and includes popular platforms such as Amazon and eBay.

 

Business-to-Business (B2B) e-commerce: This involves the sale of products or services between businesses. B2B e-commerce is typically focused on bulk orders and is often used by wholesalers and manufacturers.

 

Consumer-to-Consumer (C2C) e-commerce: This involves the sale of products or services between individual customers. C2C e-commerce is typically facilitated by online marketplaces such as Craigslist and Etsy.

 

Consumer-to-Business (C2B) e-commerce: This involves the sale of products or services from individual customers to businesses. C2B e-commerce is often used in situations where businesses need to source products or services from individual suppliers.

 

Business-to-Government (B2G) e-commerce: This involves the sale of products or services from businesses to government entities. B2G e-commerce is often used for procurement purposes, such as when a government agency needs to purchase supplies or equipment.

 

Government-to-Business (G2B) e-commerce: This involves the sale of products or services from government entities to businesses. G2B e-commerce is often used for situations where businesses need to obtain licenses, permits, or other forms of government approval.

 

Mobile commerce (m-commerce): This involves the buying and selling of goods and services through mobile devices such as smartphones and tablets. M-commerce is becoming increasingly popular due to the widespread use of mobile devices and the convenience they offer.

 

Overall, the various types of e-commerce provide businesses and consumers with a range of options for conducting transactions online, and have transformed the way that people buy and sell goods and services.

 

Q.11. What do you mean by e-commerce? Narrate various benefits of e-commerce.

Ans. E-commerce refers to the buying and selling of goods and services over the internet. It involves electronic transactions that are conducted between businesses, consumers, or a combination of both. The concept of e-commerce has revolutionized the way people shop and do business by providing a more convenient and efficient way of conducting transactions.

 

Some of the key benefits of e-commerce include:

 

Convenience: E-commerce allows customers to shop from the comfort of their own homes or offices, without the need to physically visit a store. This saves time and effort, making it a more convenient option for customers.

 

Global reach: E-commerce has no geographical boundaries, allowing businesses to reach customers in different parts of the world. This provides businesses with access to a larger customer base and the potential to increase sales.

 

Reduced costs: E-commerce eliminates the need for physical stores, reducing the costs associated with rent, utilities, and staffing. This allows businesses to offer products at lower prices, making them more competitive.

 

24/7 availability: E-commerce websites are available 24/7, allowing customers to shop at any time of the day or night. This increases convenience for customers and provides businesses with the potential to generate sales around the clock.

 

Increased customer data and insights: E-commerce provides businesses with access to valuable customer data, including purchasing behavior, preferences, and demographics. This data can be used to improve marketing strategies, product offerings, and customer experiences.

 

Faster transaction processing: E-commerce transactions are processed electronically, reducing the time and effort required to complete a transaction. This allows businesses to process more transactions in less time, increasing efficiency and reducing wait times for customers.

 

In summary, e-commerce provides businesses with a powerful tool for reaching customers, reducing costs, and increasing efficiency. It also provides customers with a more convenient and efficient way of shopping, making it a win-win situation for both businesses and consumers.

 

Q.12. What are basic models of e-commerce? Explain these models.

Ans. There are several basic models of e-commerce, including:

 

Business-to-Business (B2B) Model:

This model involves transactions between businesses, such as between a wholesaler and a retailer. B2B e-commerce focuses on streamlining supply chain management, reducing transaction costs, and improving efficiency. This type of e-commerce generally involves larger transactions, longer sales cycles, and a smaller number of customers.

 

Business-to-Consumer (B2C) Model:

This model involves transactions between a business and individual consumers. B2C e-commerce is what most people think of when they hear the term "e-commerce." It involves online retailers selling products directly to customers through their website or mobile app. B2C e-commerce generally involves smaller transactions, shorter sales cycles, and a larger number of customers.

 

Consumer-to-Consumer (C2C) Model:

This model involves transactions between individual consumers, such as in online marketplaces like eBay or Craigslist. C2C e-commerce relies on a platform that connects buyers and sellers, but the platform operator does not own the goods being sold. This type of e-commerce can be either auction-based or fixed-price.

 

Consumer-to-Business (C2B) Model:

This model involves transactions where the consumer provides a product or service to a business. This type of e-commerce is less common than the other models, but is becoming more popular in the gig economy. Examples of C2B e-commerce include freelancing websites like Up work or Fiverr, where individuals offer their services to businesses.

 

Business-to-Government (B2G) Model:

This model involves transactions between businesses and government agencies. B2G e-commerce can be used for procurement, bid submission, and other government-related transactions. This type of e-commerce is typically highly regulated and involves strict compliance with government regulations.

 

Government-to-Business (G2B) Model:

This model involves transactions where government agencies provide services to businesses. Examples of G2B e-commerce include online business registration, tax filing, and procurement portals.

 

Government-to-Consumer (G2C) Model:

This model involves transactions where government agencies provide services directly to consumers. Examples of G2C e-commerce include online portals for paying taxes, renewing driver's licenses, and accessing government services.

 

Overall, these e-commerce models have transformed the way business is conducted, making it easier for businesses to reach customers and increasing the convenience of online shopping for consumers.

 

Q.13. In November 2016, the Indian Government demonetized the old notes R. 500/-and R. 1000/- Which accounted for approximately 86% of the country’ s cash supply. The R. 500/- note was replaced with new one while a new note of R. 2000/- was introduced. What was impact of this demonetization on the e-business in India?

Ans. The demonetization of old notes R. 500/- and R. 1000/- by the Indian government in November 2016 had a significant impact on the e-business industry in India. Here are some of the effects:

 

Increase in digital transactions: Demonetization led to a cash crunch in the country, which forced people to switch to digital modes of payment. E-commerce companies and online marketplaces saw a significant increase in the number of digital transactions during this period.

 

Adoption of e-wallets: With cash becoming scarce, people started using e-wallets to make digital payments. Companies like Paytm, Mobikwik, and Freecharge witnessed a surge in the number of users during this period.

 

Boost in online sales: As people were unable to use cash to make purchases, they turned to online marketplaces like Amazon, Flipkart, and Snapdeal to buy goods and services. This led to a significant increase in online sales during this period.

 

Challenges for small businesses: Demonetization had a significant impact on small businesses in India, many of which rely on cash transactions. With cash becoming scarce, small businesses struggled to survive, and many had to shut down.

 

Infrastructure challenges: The sudden increase in digital transactions led to infrastructure challenges, such as network connectivity issues, slow internet speeds, and server crashes. This affected the user experience and led to frustration among customers.

 

Overall, demonetization had a mixed impact on the e-business industry in India. While it led to a boost in digital transactions and online sales, it also posed challenges for small businesses and highlighted the need for better digital infrastructure.

 

Q.14. What are the precautions which should be taken for secure e-commerce?

Ans. There are several precautions that should be taken to ensure secure e-commerce. Some of these precautions are:

 

Use a secure website: It is important to ensure that the website you are transacting on is secure. Look for "https" at the beginning of the website URL, which indicates that the website is secure.

 

Use strong passwords: When creating an account on an e-commerce website, use a strong password that includes a mix of letters, numbers, and symbols. Do not use the same password for multiple websites.

 

Keep software up-to-date: Keep your operating system, web browser, and anti-virus software up-to-date to ensure that you are protected against the latest security threats.

 

Use trusted payment methods: Use trusted payment methods such as credit cards or PayPal, which provide additional layers of security and protection against fraud.

 

Avoid public Wi-Fi: Avoid using public Wi-Fi when making online purchases as it is not secure and can make you vulnerable to hackers.

 

Be cautious of suspicious emails: Be cautious of emails that ask for personal or financial information. Do not click on links in these emails and do not provide any personal or financial information.

 

Check your bank statements regularly: Regularly check your bank statements to ensure that there are no unauthorized transactions.

 

By taking these precautions, you can help to ensure secure e-commerce transactions and protect your personal and financial information from theft and fraud.

 

Q.15. G2B, g2C and G2G models of e-commerce bring transparency, enhance efficiency and reduce costs of governments’ transaction. Comment.

Ans. G2B, G2C, and G2G models of e-commerce refer to different forms of electronic transactions between government entities and other stakeholders. These models have the potential to bring significant benefits to the government and the public. Here are some ways in which these models can help:

 

Transparency: Electronic transactions under these models can increase transparency in government operations by providing easy access to information and reducing the scope for corruption and rent-seeking. For example, G2C services such as online tax filing or passport application can reduce the need for intermediaries and reduce corruption.

 

Efficiency: E-commerce can enhance the efficiency of government transactions by reducing paperwork, improving communication, and speeding up processes. For example, G2B services such as online tendering and procurement can streamline the bidding process and make it more efficient.

 

Cost Reduction: Electronic transactions can significantly reduce the costs associated with government transactions. For example, G2G models such as electronic payment of taxes and bills can reduce the need for manual processing and the associated costs.

 

In summary, the G2B, G2C, and G2G models of e-commerce can bring transparency, enhance efficiency, and reduce costs of government transactions. This can lead to better governance, increased citizen participation, and economic growth.

 

Multiple Choice Questions:

 

1. In E-Commerce, mode of information exchange is :

(a) Via communication network (b) Via physical presence

(c) Both of these (d) None of these

E-Commerce typically uses a variety of methods for information exchange such as email, messaging, and web forms. "None of these" would not be an accurate statement.

 

2. E-Commerce includes :

(a) Internet (b) E-mail

(c) Electronic data interchange (d) All of these

E-Commerce includes buying and selling of goods and services, electronic fund transfer, online transaction processing, supply chain management, electronic data interchange, and automated data collection systems.

 

3. E-commerce includes :

(a) E-banking (b) E-trading

(c) E-marketing (d) All of the above

E-commerce generally includes buying and selling goods and services online, electronic fund transfer, online marketing and advertising, online transaction processing, inventory management, and electronic data interchange (EDI). It encompasses a wide range of activities and can involve various types of business models such as B2B, B2C, C2C, and G2C. Additionally, it also involves the use of various technologies such as the internet, mobile devices, and other digital platforms to facilitate the exchange of goods and services.

 

4. Which of the following is not a requirement of E-Commerce ?

(a) Internet enabled computer

(b) A website to show the product

(c) A method to receive the payment

(d) A middleman

An internet enabled computer is a requirement for E-commerce, as it allows the user to access the internet and interact with online businesses and marketplaces. Without a computer, or some other internet-enabled device, the user would not be able to participate in e-commerce transactions.

 

5.  E-Commerce helps to prospective customer to :

(a) Purchase goods anywhere and anytime

(b) Purchase goods during working hours

(c) Purchase goods on holidays

(d) None of the above

compare prices and products, and read reviews before making a purchase. It also allows businesses to reach a wider customer base, increase efficiency and reduce costs.

 

6. Which of the following is not a type of E-Commerce model :

(a) D2C (b) B2B

(c) C2C (d) B2C

D2C (Direct to Consumer) is not a commonly used term in E-Commerce and does not refer to a specific E-Commerce model. It is not a standard model of e-commerce.

 

7. E-Commerce has expanded the business or its coverage is :

(a) Local only (b) State only

(c) National only (d) Global

e-commerce has expanded the coverage of businesses by allowing them to reach customers on a global scale through the internet. This has opened up new markets and opportunities for businesses to grow and expand their customer base.

 

 

What does e-commerce refer to?

a) Buying and selling of goods and services over the Internet

b) Selling goods and services through physical stores

c) Buying and selling goods and services through telecommunication networks

d) All of the above

 

Q.1. Which of the following is not an application of e-commerce?

a) Online shopping

b) Business-to-business (B2B) transactions

c) Physical stores

d) Social commerce

 

Q.2. Which of the following is a benefit of e-commerce to customers?

A. Increased economic growth

B. Real-time data and analytics

C. Ability to shop 24/7

D. Use of social media platforms for transactions

 

Q.3. Early example of e-commerce

Which of the following was one of the earliest examples of e-commerce?

A. eBay

B. Amazon.com

C. Walmart.com

D. Target.com

 

Q.4. Elements of e-commerce

Which of the following is an element of e-commerce?

A. Cash payment system

B. Physical shopping cart

C. Social commerce

D. Salesperson management system

Q.5. Need for e-commerce

What is one of the reasons there is a need for e-commerce?

A. Increase in physical store locations

B. Decrease in mobile and internet usage

C. Change in consumer behaviors

D. Decrease in technological advancements

 

Q.6. Functions of e-commerce

What is one of the functions of e-commerce?

A. Providing a secure payment system

B. Managing and processing orders for shipping and delivery

C. Handling customer inquiries and complaints

D. Conducting e-commerce transactions using mobile devices

 

Q.7. What is the benefit of competitive pricing in e-commerce?

a) It allows customers to shop from the comfort of their own homes

b) It offers a wider range of products

c) It helps organizations to reach a wider market

d) It helps e-commerce websites to personalize the shopping experience

 

Q.8. What advantage does e-commerce offer to organizations in terms of supply chain management?

a) Real-time visibility into inventory levels

b) Automated systems and processes to increase efficiency

c) 24/7 availability of the online store

d) Easy access to customer reviews and ratings

 

Q.9. What is one of the limitations of e-commerce?

a) Lack of personal touch and face-to-face interaction

b) Slow loading times or website crashes

c) Increased access to information

d) More job opportunities in online marketing

 

Q.10. What is one of the benefits of e-commerce to society?

a) Lack of human interaction

b) Limited product information

c) Enhanced competition

d) Technical problems

 

Q.11. What is a key difference between e-commerce and traditional commerce?

a) Limited access to product information in e-commerce

b) No face-to-face interaction in traditional commerce

c) Transactions being processed slower in e-commerce

d) Geographical barriers in traditional commerce

 

Q.12. Traditional commerce may offer a more hands-on experience, allowing customers to touch, feel and try products before making a purchase.

a) Lack of personal touch and face-to-face interaction

b) Slow loading times or website crashes

c) Increased access to information

d) More job opportunities in online marketing

 

Q.13. What is one of the benefits of e-commerce to society?

a) Lack of human interaction

b) Limited product information

c) Enhanced competition

d) Technical problems

 

Q.14. What is a key difference between e-commerce and traditional commerce?

a) Limited access to product information in e-commerce

b) No face-to-face interaction in traditional commerce

c) Transactions being processed slower in e-commerce

d) Geographical barriers in traditional commerce

 

Q.15. Which of the following is a benefit of e-commerce to society?

a) Increased competition

b) Lack of human interaction

c) Limited product information

d) Technical problems

 

Q.16. Which of the following is a limitation of e-commerce?

a) Enhanced customer satisfaction

b) Increased employment opportunities

c) Security concerns

d) Increased product information

 

Q.17. What is a key difference between e-commerce practices and traditional commerce practices?

a) Limited access to product information in e-commerce

b) More personalized experience in traditional commerce

c) Transactions processed faster in traditional commerce

d) Global reach in traditional commerce

 

Q.18. What does the scope of e-commerce refer to?

a) Potential opportunities and growth areas for e-commerce businesses

b) Physical stores and face-to-face interactions

c) Technical problems and website crashes

d) Lack of human interaction and customer satisfaction

 

Q.19. Which of the following areas is the scope of e-commerce expanding into?

a) Traditional commerce

b) Brick-and-mortar stores

c) Mobile commerce

d) In-person sales

 

Q.20. Which of the following refers to the model in which individuals sell goods and services to other individuals?

a. Business-to-Consumer (B2C)

b. Consumer-to-Consumer (C2C)

c. Business-to-Business (B2B)

d. Consumer-to-Business (C2B)

e. Business-to-Government (B2G)

 

Q.21. Which of the following models involves businesses selling products and services to government organizations?

a. Business-to-Consumer (B2C)

b. Consumer-to-Consumer (C2C)

c. Business-to-Business (B2B)

d. Consumer-to-Business (C2B)

e. Business-to-Government (B2G)

 

Q.22. Which of the following is NOT a function of a proxy service in the context of e-commerce?

a. Filtering out unwanted traffic

b. Encrypting data transmitted between the client and the server

c. Providing access to restricted resources on the server

d. Providing additional bandwidth to the server

e. Protecting customer data transmitted over the internet

 

Q.23. Which of the following is NOT a use of processed information in e-business?

a. Customer segmentation

b. Market analysis

c. Product development

d. Data backups

e. Business performance improvement

 

Q.24. Which of the following computer programming methods involves processing a large amount of data in groups or "batches" rather than processing it one record at a time?

a. Batch processing

b. Real-time processing

c. Stream processing

d. Sequential processing

e. Parallel processing

 

Q.25. What is the main advantage of using batch processing?

a. It allows for real-time processing of data.

b. It is well-suited to handle small amounts of data.

c. It reduces the risk of human error.

d. It is not affected by the size of the data.

e. It can handle complex operations, such as sorting and aggregating data.

 

Q.26. Which of the following is an example of using batch processing in a company?

a. Generating a daily sales report

b. Monitoring website traffic in real-time

c. Responding to customer inquiries via email

d. Updating inventory levels as sales occur

e. Providing immediate customer support through chat.

 

Q.27. What is Real-time Processing?

a) A type of data processing where transactions are processed with a delay

b) A type of data processing where transactions are processed immediately and the results are available immediately

c) A type of data processing where transactions are not processed

 

Q.28. Which of the following applications use real-time processing?

a) Online gaming

b) Real-time stock trading

c) Online payment systems

d) All of the above

 

Q.29. What is SSL certificate?

a) A certificate that encrypts information transmitted between the customer and the website

b) A type of payment option

c) A type of password

 

Q.30. Which of the following precautions should you take for secure e-commerce?

a) Use strong passwords

b) Use public Wi-Fi networks for online shopping

c) Don't keep records of all your online transactions

d) None of the above

 

Q.31. What is demonetization?

a) The sudden withdrawal of a certain currency denomination as legal tender

b) The replacement of old currency notes with new ones

c) The discontinuation of e-commerce transactions

 

Q.32. How did demonetization impact the e-commerce industry in India in 2016?

a) It led to a temporary cash crunch, resulting in a drop in sales and an increase in abandoned carts

b) It led to an increase in digital payment methods, leading to a boost in the e-commerce industry

c) It had no impact on the e-commerce industry

 

Q.33. What are the positive effects of demonetization on e-business?

a) Increased transparency

b) Increased usage of digital payment methods

c) Boost to the e-commerce industry

d) All of the above

 

Q.34. What are the negative effects of demonetization on e-business?

a) Initial disruptions

b) Impact on small businesses

c) Technical issues

d) All of the above

 

 

 

 

True or False

 

1. E-commerce does not help customers to do transaction or shop on 24x30x12x365 basis

from any location.  False

E-commerce allows customers to do transactions or shop on a 24x7x365 basis from any location with an internet connection.

 

 2.Interaction between government and its citizens is called G2G E-commerce.  False

G2G (Government-to-Government) e-commerce refers to the interaction between            government and its citizens, including services such as online tax filing, government  procurement, and access to government information.

 

3. Proxy servers provide packet filtering service.  True

While proxy servers can provide packet filtering service, their primary function is to act as an intermediary between a client and a server. They can be used for a variety of purposes such as caching, security, and anonymity.

 

4. E-commerce cannot deliver goods at lower prices. False

E-commerce can often offer lower prices due to reduced overhead costs and increased competition. Additionally, e-commerce can also offer a wider range of products and services, making it easier for customers to find the best deals.

 

1. E-commerce refers to the buying and selling of goods and services over the Internet. (True/False)

 

2. E-commerce only involves transactions between businesses using electronic channels. (True/False)

 

3. The growth of e-commerce has made it easier for businesses to reach new customers and markets. (True/False)

 

4. E-commerce has expanded to mobile devices, allowing customers to make purchases using their smartphones or tablets. (True/False)

 

5. Subscription services cannot be sold through e-commerce platforms.(True/False)

 

6. E-commerce has led to increased economic growth and job creation. (True)

 

7. E-commerce can help organizations to increase sales and revenue. (True)

 

8. Online shoppers cannot access customer reviews and ratings in e-commerce.

      (False)

 

9. E-commerce creates new job opportunities in fields such as online marketing, web design, and customer service. (True/False)

 

10. E-commerce lacks the personal touch and face-to-face interaction of traditional retail. (True/False)

 

11. Traditional commerce may offer a more hands-on experience, allowing customers to touch, feel and try products before making a purchase. (True/False)

 

12. True or False: Batch processing is well-suited for processing data in real-time.

    (True/False)

 

13. True or False: Proxy services can be used in e-commerce to provide additional security and privacy for online transactions.(True/False)

 

14. True or False: The processing of information in e-business only involves analyzing customer data. (True/False)

 

   

 

A.       One Word or one Line questions

 

Q. 1. What is meant by E-Commerce ?

Ans. E-commerce is the use of electronic transmission media to engage in buying and

selling of goods or services physically or digitally.

E-Commerce refers to the buying and selling of goods and services over the internet. It includes activities such as online shopping, online banking, and online money transfers. E-Commerce also includes the exchange of information and data through electronic means, such as email and online messaging. It allows businesses and consumers to conduct transactions without the need for physical interaction, making it a convenient and efficient way of conducting business.

Q. 2. What are the various components of E-Commerce that go hand in hand ?

Ans. Components of E-Commerce that go hand in hand are—E-Banking, E-Security, ETrading,

E-Marketing etc.

The various components of E-Commerce that go hand in hand include:

Online storefronts or e-tailers: These are websites where customers can purchase products or services. Payment systems: These are the methods by which customers can pay for their purchases, such as credit cards, PayPal, etc. Shopping cart software: This allows customers to add products to their virtual shopping cart and keep track of their purchases. Inventory management systems: These are used to track and manage the inventory of products available for sale. Order fulfillment systems: These manage the process of shipping and delivering products to customers.Marketing and advertising: This includes using various online channels to promote products and services, such as search engine optimization, social media marketing, email marketing, etc.Customer service: This includes providing assistance to customers, such as through email, phone, or live chat support.Analytics and data analysis: This includes tracking website and sales data in order to gain insights into customer behavior and improve the e-commerce experience.

Q. 3. What are the various types of E-Commerce ?

Ans. Various types of E-commerce are B2B, B2C, C2C, G2G, G2C, G2E and P2P.

The various types of e-commerce include:

Business-to-Business (B2B) e-commerce: This type of e-commerce involves transactions between businesses, such as wholesalers selling to retailers or manufacturers selling to distributors. Business-to-Consumer (B2C) e-commerce: This type of e-commerce involves transactions between businesses and consumers, such as online retail sales. Consumer-to-Consumer (C2C) e-commerce: This type of e-commerce involves transactions between consumers, such as online marketplace platforms like eBay or Amazon. Consumer-to-Business (C2B) e-commerce: This type of e-commerce involves transactions where consumers provide goods or services to businesses, such as freelance work or stock photography. Mobile e-commerce: This type of e-commerce involves transactions through mobile devices such as smartphones or tablets.Social media e-commerce: This type of e-commerce involves transactions through social media platforms such as Facebook, Instagram, or Tik Tok.

Q. 4. B2B stands for ......

Ans. Business to Business.

Business-to-Business

Q. 5. C2C stands for .....

Ans. Consumer to consumer.

C2C stands for Consumer-to-Consumer. It refers to transactions made between individuals rather than between a business and a consumer. This can include buying, selling, or trading goods and services through online marketplaces, social media platforms, and other online channels.

Q. 6. B2C stands for .......

Ans. Business to Consumer.

B2C stands for Business-to-Consumer. It refers to the type of e-commerce where businesses sell products or services directly to consumers.

Q. 7. Which is the most common type of E-Commerce ?

Ans. The most common type of E-commerce is B2C, from business to customer e.g.

Banking, Insurance, Health care.

B2C (Business to Consumer) is the most common type of E-Commerce. It involves the sale of goods and services directly to consumers through online platforms such as e-commerce websites and mobile apps.

Q. 8. Where EDI can be used ?

Ans. It is used in stock trading, travel reservation, retail traders and funds transfer etc.

EDI (Electronic Data Interchange) can be used in various industries for the exchange of business documents such as invoices, purchase orders, and shipping notices between organizations. It is commonly used in industries such as manufacturing, retail, finance, and healthcare.

Q. 9. What are Proxy Services ?

Ans. Proxy Services means uploading facilities, fulfilling some requests of clients by

themselves and forwarding some of the requests to real servers.

Proxy services refer to a server or a system that acts as an intermediary between a client and another server, usually for the purpose of security, anonymity, or to improve network performance by caching frequently-requested resources. In a web context, a proxy service can intercept and process web requests on behalf of the client, and return the results to the client. This can be used to filter out unwanted content, to hide the client's identity, or to bypass geographical restrictions on accessing certain websites.

B Fill in the blanks

1.        E-commerce is the process of doing business online.

E-commerce refers to buying and selling goods and services over the internet, using electronic means such as websites, mobile apps, and online marketplaces. It also includes other business activities such as online banking, online ticketing, and online reservations.

2.        E-commerc  allows you to approach even those people who are sitting at the other end of theglobe.

E-commerce allows for a wider customer reach and the ability to conduct business transactions online, making it convenient for both the business and the customer. This includes buying and selling goods and services, as well as transferring money and data. Some common components of e-commerce include online marketplaces, payment systems, and digital marketing. Types of e-commerce include B2B (business-to-business), B2C (business-to-consumer), and C2C (consumer-to-consumer). B2C is the most common type of e-commerce and it refers to transactions between a business and individual consumers. EDI (Electronic Data Interchange) is used to transfer data between different computer systems, and it can be used in various industries such as finance, healthcare, and manufacturing. Proxy Services are intermediary services that act as a go-between for clients seeking resources from other servers.

3. E-commerce means any kind of commerce, where buyers and sellers interact for goods

and services through . Internet

E-commerce typically refers to buying and selling goods and services online through the use of the internet and electronic devices such as computers, smartphones, and tablets. This type of commerce allows for easy and convenient transactions between buyers and sellers, regardless of their physical location.

     4.E-commerce provides Anytime anywhere  service.     

E-commerce provides Anytime anywhere service, allowing customers to shop and conduct business at any time and from any location with an internet connection.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

     5.In e-commerce data is not entered at multiple points so it reduces the data errors.

E-commerce typically uses automated systems to process and record transactions, reducing the chance for errors that can occur when data is manually entered multiple times.

      6.E-marketing is a network of relationships.

E-marketing is the process of promoting, selling, and distributing a product or service through electronic channels, such as the internet, email, and mobile devices. It involves creating and executing marketing strategies and tactics to reach and engage customers online. E-marketing includes various activities like search engine optimization, social media marketing, email marketing, and online advertising. It is a network of relationships where businesses interact with their customers and other stakeholders through digital channels to achieve their marketing goals.

Ans. 1. E-commerce, 2. E-commerce, 3. Internet, 4. anywhere, 5. reduces, 6. Network

C. True or False

1. E-commerce does not help customers to do transaction or shop on 24x30x12x365 basis

from any location.  False

E-commerce allows customers to do transactions or shop on a 24x7x365 basis from any location with an internet connection.

    2.Interaction between government and its citizens is called G2G E-commerce.  False

    G2G (Government-to-Government) e-commerce refers to the interaction between            government and its citizens, including services such as online tax filing, government  procurement, and access to government information.

3.        Proxy servers provide packet filtering service.  True

While proxy servers can provide packet filtering service, their primary function is to act as an intermediary between a client and a server. They can be used for a variety of purposes such as caching, security, and anonymity.

4.        E-commerce cannot deliver goods at lower prices. False

E-commerce can often offer lower prices due to reduced overhead costs and increased competition. Additionally, e-commerce can also offer a wider range of products and services, making it easier for customers to find the best deals.

           Ans. 1. False, 2. False, 3. True, 4. False.

D. MCQ

1. In E-Commerce, mode of information exchange is :

(a) Via communication network (b) Via physical presence

(c) Both of these (d) None of these

E-Commerce typically uses a variety of methods for information exchange such as email, messaging, and web forms. "None of these" would not be an accurate statement.

2. E-Commerce includes :

(a) Internet (b) E-mail

(c) Electronic data interchange (d) All of these

E-Commerce includes buying and selling of goods and services, electronic fund transfer, online transaction processing, supply chain management, electronic data interchange, and automated data collection systems.

4. E-commerce includes :

(a) E-banking (b) E-trading

(c) E-marketing (d) All of the above

E-commerce generally includes buying and selling goods and services online, electronic fund transfer, online marketing and advertising, online transaction processing, inventory management, and electronic data interchange (EDI). It encompasses a wide range of activities and can involve various types of business models such as B2B, B2C, C2C, and G2C. Additionally, it also involves the use of various technologies such as the internet, mobile devices, and other digital platforms to facilitate the exchange of goods and services.

3. Which of the following is not a requirement of E-Commerce ?

(a) Internet enabled computer

(b) A website to show the product

(c) A method to receive the payment

(d) A middleman

An internet enabled computer is a requirement for E-commerce, as it allows the user to access the internet and interact with online businesses and marketplaces. Without a computer, or some other internet-enabled device, the user would not be able to participate in e-commerce transactions.

4. E-Commerce helps to prospective customer to :

(a) Purchase goods anywhere and anytime

(b) Purchase goods during working hours

(c) Purchase goods on holidays

(d) None of the above

compare prices and products, and read reviews before making a purchase. It also allows businesses to reach a wider customer base, increase efficiency and reduce costs.

5. Which of the following is not a type of E-Commerce model :

(a) D2C (b) B2B

(c) C2C (d) B2C

D2C (Direct to Consumer) is not a commonly used term in E-Commerce and does not refer to a specific E-Commerce model. It is not a standard model of e-commerce.

6. E-Commerce has expanded the business or its coverage is :

(a) Local only (b) State only

(c) National only (d) Global

e-commerce has expanded the coverage of businesses by allowing them to reach customers on a global scale through the internet. This has opened up new markets and opportunities for businesses to grow and expand their customer base.