UNIT 1: INTRODUCTION TO E-COMMERCE
STATE 'TRUE' OF 'FALSE": 1 MARKS:
(i ) E-Commerce can't be conducted without technology. (True)
(ii) The physical transfer of assets and property through the internet can be referred to as RRED. (True)
(iii) Printed forms are used to generate invoices in E-Commerce (False)
(iv) Customer's physical existence is not required in E-Commerce. (False)
(v) In case of E-Commerce, there is no increase of sale and cost. (False)
( vi) Website is one of the main elements of E-Commerce. (True)
QUESTION HAVING 2 MARKS:
1.Given two definition of eCommerce.
Ans: The two definitions of eCommerce are
(i) National Association of Software and Service Companies ("NASSCOM") defines e- commerce to be transactions where both the offer for sale and the acceptance of offer are made electronically.
(ii) According to Dr NL. Mitra of the National Law School of India, Bangalore University in e-commerce, offer and acceptance is done through the Internet, almost like mail order or telephone order
2.Give two examples of B2C transaction involving information goods.
Ans: B2C examples involving information goods are:
(i) E-Trade,
(ii) Travelocity.
3. State the important characteristics C2C business transaction.
Ans: The important characteristics of C2C business transaction are:
1.Direct Interaction: C2C transactions involve direct interactions between individual consumers, bypassing traditional business intermediaries.
2.Platform Facilitation: These transactions often occur through online platforms or marketplaces where consumers can list, buy, or sell goods and services directly to/from each other.
3.User-generated Content: Content such as product descriptions, images, and reviews are typically generated by the users themselves, contributing to the authenticity and diversity of offerings.
4. Peer-to-Peer Trust: Trust plays a significant role in C2C transactions as consumers rely on the reputation and feedback of other users to assess the reliability and quality of sellers.
5. Informal Nature: C2C transactions are often informal and may lack the legal and regulatory framework associated with traditional B2C (Business-to-Consumer) transactions, requiring users to exercise caution and due diligence.
4. Mention different types of eCommerce.
Ans: The different types of eCommerce are :-
Business to Business (B2B), Business to Customer (B2C), Business to Government ( B2G), Customer to Customer (C2C), Customer to Business (C2B), Government to Business ( G2B), Government to Citizen (G2C), Peer to Peer (P2P), etc.
5 . Mention two requirements of eCommerce.
Ans: Following are the two requirements of e-Commerce:
(i) Computer having internet facility,
(ii) A website to represent a product.
6. Write two objectives of eCommerce.
Ans: Two objectives of eCommerce are: (i) Prompt and quick supply of product and services, (ii) To take advantage of the global market
7. Mention two functions of eCommerce.
Ans: Following are the two functions of eCommerce (1) Communicating with the prospective customers, (ii) Managing the transaction conducted by the business
8. Write two disadvantages of eCommerce.
Ans: The two disadvantages of eCommerce are:
(i) Possibility of increasing frad and deception ,
(ii) No belief and trust on the part of the customer
9. Name two areas of abligation of eCommerce.
Ans: The two areas of obligation of eCommerce are:
(i) Online banking, (ii) Online marketitng.
10. Write major forces behind eCommerce.
Ans: (i) Market Force (ii) Economic Force (iii ) Technological forces, (iv) Societal and environmental forces.
11. Write the principles of Telnet.
Ans: The Following are the principles of Telnet :-
Remote Access: Telnet allows a user to remotely access another computer or device over a network.
Text-Based Communication: Telnet facilitates communication between the client and server through text-based commands and responses.
Client-Server Model: Telnet follows the client-server architecture, where a client initiates a connection to a server.
Port 23: Telnet typically uses TCP port 23 for communication between the client and server.
QUESTION HAVING 5 MARK:
1. Write a brief note on the history of eCommerce.
Ans:- E-commerce, short for electronic commerce, has roots dating back to the 1960s with the advent of electronic data interchange (EDI), allowing businesses to exchange documents electronically. However, the true beginnings of e-commerce as we know it today can be traced to the 1990s with the rise of the internet and advancements in technology.
In 1994, Jeff Bezos founded Amazon.com, initially an online bookstore, which quickly expanded into a diverse e-commerce platform. Shortly after, in 1995, eBay was founded, introducing the concept of online auctions. These pioneering ventures paved the way for the widespread adoption of online shopping.
The dot-com bubble of the late 1990s brought significant investments in e-commerce startups, leading to both successes and failures. Despite the bubble burst, e-commerce continued to grow steadily.
The early 2000s saw the emergence of payment gateways like PayPal, improving online transaction security and convenience. The proliferation of smartphones in the late 2000s further fueled e-commerce growth, enabling shopping on-the-go.
Today, e-commerce is ubiquitous, encompassing various models such as business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C). With the rise of social media and artificial intelligence, e-commerce continues to evolve, offering personalized shopping experiences and driving global commerce in new directions.
2. What is M-Commerce? Write few words on the relevance of M-Commerce?
Ans:- M-Commerce, short for Mobile Commerce, refers to the buying and selling of goods and services through mobile devices like smartphones and tablets. It encompasses various activities such as mobile banking, mobile ticketing, mobile money transfers, and mobile shopping. M-Commerce leverages the convenience and ubiquity of mobile devices, allowing consumers to make transactions anytime and anywhere with internet access.
The relevance of M-Commerce lies in its ability to cater to the growing trend of mobile usage. With the widespread adoption of smartphones and increasing internet penetration, more people are turning to their mobile devices for various tasks, including shopping. M-Commerce provides businesses with an opportunity to reach a larger audience and offer a seamless shopping experience. It enables personalized marketing strategies based on user behavior and location data, leading to increased customer engagement and loyalty. Additionally, M-Commerce opens up new avenues for innovation, such as mobile payment technologies and augmented reality shopping experiences, shaping the future of retail and commerce.
3. Write shortly the forces that are fueling eCommerce?
Ans:- The forces fueling eCommerce include:
1. Digitalization: Increasing internet penetration and accessibility worldwide have made online shopping more convenient and accessible.
2. Mobile technology: The proliferation of smartphones and tablets has enabled people to shop on the go, contributing to the growth of mobile commerce.
3. Convenience: eCommerce offers the convenience of shopping from home, avoiding physical stores' limitations such as opening hours and geographical constraints.
4. Changing consumer behavior: Shifts in consumer preferences towards online shopping, driven by factors like convenience, variety, and competitive pricing, have fueled eCommerce growth.
5. Technological advancements: Innovations in payment processing, logistics, and personalized shopping experiences have enhanced the eCommerce ecosystem, attracting more consumers and businesses.
6. Globalization: eCommerce allows businesses to reach customers worldwide, breaking down geographical barriers and expanding market opportunities.
7. Social media influence: Integration of social media platforms with eCommerce has facilitated product discovery and peer recommendations, driving online sales.
4. What is E-Model? Write four functions conducted by E-Model for eCommerce.
Ans:-The "E-Model" refers to the business model adopted by eCommerce ventures to operate and generate revenue online. Four functions conducted by the E-Model for eCommerce are:
1. Online Marketing: E-Model eCommerce businesses utilize various digital marketing strategies such as search engine optimization (SEO), social media marketing, email marketing, and pay-per-click advertising to attract potential customers and drive traffic to their online platforms.
2. E-Commerce Platform: E-Model eCommerce ventures provide a user-friendly online platform where customers can browse, select, and purchase products or services. This platform typically includes features such as product catalogs, shopping carts, secure payment gateways, and customer support.
3.Supply Chain Management: E-Model eCommerce businesses manage the supply chain efficiently to ensure timely delivery of products or services to customers. This involves inventory management, order fulfillment, shipping logistics, and vendor relationships to streamline the process and meet customer expectations.
4. Customer Relationship Management (CRM): E-Model eCommerce ventures focus on building and maintaining strong relationships with customers through effective CRM strategies. This includes personalized communication, customer feedback mechanisms, loyalty programs, and post-purchase support to enhance customer satisfaction and loyalty.
5. Write the importance of eCommerce in modern business work.
Ans:- The importance of eCommerce in modern business is profound, manifesting in various aspects:
1. Global Reach: eCommerce transcends geographical boundaries, allowing businesses to reach a global audience without the need for physical storefronts. This expansive reach opens up new markets and opportunities for growth.
2. 24/7 Accessibility: Unlike traditional brick-and-mortar stores, eCommerce platforms are accessible 24/7, enabling customers to shop at their convenience, leading to increased sales and revenue.
3. Cost Efficiency: eCommerce eliminates the need for expensive overhead costs associated with maintaining physical stores, such as rent, utilities, and staffing. This cost efficiency allows businesses to offer competitive pricing and invest in other areas like marketing and product development.
4. Data-Driven Insights: eCommerce platforms generate vast amounts of data on customer behavior, preferences, and purchasing patterns. Businesses can leverage this data to optimize their marketing strategies, improve product offerings, and enhance the overall customer experience.
5. Scalability: eCommerce offers scalability, allowing businesses to quickly adapt to fluctuations in demand and easily expand their operations as needed. This flexibility is particularly advantageous for startups and small businesses looking to grow rapidly.
6. Innovation and Differentiation: eCommerce fosters innovation by providing a platform for businesses to experiment with new products, services, and business models. This environment encourages creativity and differentiation, enabling businesses to stand out in crowded markets.
7. Convenience for Customers: eCommerce provides unparalleled convenience for customers, allowing them to browse and purchase products from the comfort of their homes or on the go. This convenience factor contributes to customer satisfaction and loyalty.
Overall, eCommerce has become an indispensable component of modern business work, offering unparalleled opportunities for growth, efficiency, and innovation in today's digital economy.
6 . What are the ways of conducting transaction online?
Ans:- There are several ways of conducting transactions online:
1. Credit/Debit Cards: Customers can make purchases online using credit or debit cards. They enter their card information on the website's checkout page, and the payment is processed securely through a payment gateway.
2. Digital Wallets: Digital wallet services like PayPal, Apple Pay, Google Pay, and Venmo allow users to store their payment information securely and make online purchases with just a few clicks or taps.
3. Bank Transfers: Customers can initiate bank transfers directly from their bank accounts to complete online transactions. This method often involves entering bank account details or using online banking services.
4. Cryptocurrencies: Some online merchants accept cryptocurrencies like Bitcoin, Ethereum, or Litecoin as payment for goods and services. Customers can transfer cryptocurrency from their digital wallets to the merchant's wallet address.
5. Electronic Funds Transfer (EFT): This method involves transferring funds electronically from one bank account to another. It is commonly used for online bill payments and business-to-business transactions.
6. Mobile Payments: Mobile payment apps like Square Cash, Zelle, and Samsung Pay allow users to make payments using their smartphones. These apps may utilize QR codes, Near Field Communication (NFC), or other technologies for secure transactions.
7. Prepaid Cards: Prepaid cards, such as prepaid debit cards or gift cards, can be used for online purchases. Customers load funds onto the card and use it to make payments on websites that accept the card's payment network (e.g., Visa, Mastercard).
These methods offer varying levels of convenience, security, and accessibility, catering to different preferences and needs of consumers and businesses conducting transactions online.
7. What are the merits accrued from eCommerce?
Ans:- Merits accrued from eCommerce include:
1. Expanded Market Reach: eCommerce allows businesses to reach a global audience, breaking down geographical barriers and expanding market opportunities.
2. Increased Sales Potential: With 24/7 accessibility and convenience, eCommerce platforms can lead to increased sales volumes compared to traditional brick-and-mortar stores.
3. Cost Efficiency: Operating an eCommerce business often incurs lower overhead costs compared to physical retail stores, including reduced expenses on rent, utilities, and staffing.
4. Targeted Marketing: eCommerce platforms enable businesses to gather data on customer preferences and behaviors, allowing for targeted marketing campaigns that can result in higher conversion rates and customer engagement.
5. Enhanced Customer Experience: Through personalized recommendations, easy navigation, and efficient customer support, eCommerce businesses can provide a superior shopping experience, leading to greater customer satisfaction and loyalty.
6. Flexibility and Scalability: eCommerce platforms offer flexibility for businesses to adapt quickly to changing market trends and scale their operations as needed without the constraints of physical infrastructure.
7. Accessibility: eCommerce provides convenience for customers, allowing them to shop anytime, anywhere, using various devices such as smartphones, tablets, and computers.
Overall, eCommerce offers numerous benefits for businesses, including increased market reach, cost efficiency, targeted marketing, enhanced customer experience, and flexibility, making it an essential component of modern commerce.
8. Write 5 benifits derrived from eCommerce.
Ans:-Five benefits derived from eCommerce are:
1. Increased Market Reach: eCommerce allows businesses to reach a global audience, breaking down geographical barriers and expanding market opportunities beyond traditional physical storefronts.
2. Cost Efficiency: Operating an eCommerce business typically incurs lower overhead costs compared to brick-and-mortar stores, including reduced expenses on rent, utilities, and staffing.
3. Enhanced Customer Experience: Through personalized recommendations, easy navigation, and efficient customer support, eCommerce businesses can provide a superior shopping experience, leading to greater customer satisfaction and loyalty.
4. Flexibility and Scalability: eCommerce platforms offer flexibility for businesses to adapt quickly to changing market trends and scale their operations as needed without the constraints of physical infrastructure.
5. Accessibility: eCommerce provides convenience for customers, allowing them to shop anytime, anywhere, using various devices such as smartphones, tablets, and computers.
9. What are the challenges faced by eCommerce at present day business work?
Ans:- Some of the challenges faced by eCommerce in present-day business work include:
1. Intense Competition: The eCommerce landscape is highly competitive, with numerous businesses vying for customers' attention. Standing out in such a crowded market requires strategic differentiation and effective marketing tactics.
2. Cybersecurity Threats: eCommerce platforms are susceptible to cybersecurity threats such as data breaches, hacking, and fraud. Protecting sensitive customer information and maintaining secure transactions are constant challenges for online businesses.
3. Fulfillment and Logistics: Efficient order fulfillment and logistics management are critical for eCommerce success. Challenges such as inventory management, shipping delays, and last-mile delivery issues can impact customer satisfaction and retention.
4. Customer Expectations: With rising expectations for fast shipping, seamless shopping experiences, and responsive customer support, meeting and exceeding customer expectations poses a significant challenge for eCommerce businesses.
5. Technology Integration: Keeping up with rapidly evolving technology trends and integrating new technologies such as AI, AR/VR, and blockchain into eCommerce operations can be complex and resource-intensive.
6. Regulatory Compliance: eCommerce businesses must navigate a complex landscape of regulations and compliance requirements, including data protection laws, tax regulations, and consumer protection policies, which vary by region and jurisdiction.
7. Fraud Prevention: Preventing fraudulent transactions, chargebacks, and identity theft presents ongoing challenges for eCommerce businesses, requiring robust fraud detection and prevention measures.
Addressing these challenges requires strategic planning, investment in technology and infrastructure, and a customer-centric approach to business operations.
10. What is eCommerce web technology? Also, write the uses of web technology in moden business.
Ans:-eCommerce web technology refers to the tools, platforms, and programming languages used to create and operate online stores and facilitate electronic transactions over the internet. This includes website development frameworks, content management systems (CMS), payment gateways, database management systems, and security protocols tailored to the needs of eCommerce businesses.
The uses of web technology in modern business extend beyond eCommerce and include:
1. Website Development: Web technology enables businesses to create dynamic, user-friendly websites to showcase products, services, and company information, enhancing brand visibility and customer engagement.
2. Online Marketing: Web technology powers digital marketing strategies such as search engine optimization (SEO), social media marketing, email marketing, and content marketing, helping businesses attract and retain customers online.
3. Customer Relationship Management (CRM): Web-based CRM systems allow businesses to manage customer interactions, track leads, and analyze customer data to improve sales and marketing efforts, enhance customer satisfaction, and drive loyalty.
4. Collaboration and Communication: Web technology facilitates collaboration and communication within organizations through tools such as project management platforms, video conferencing software, and cloud-based document sharing, improving productivity and efficiency.
5. Data Analytics: Web technology enables businesses to collect, analyze, and visualize data from various sources to gain insights into customer behavior, market trends, and business performance, informing strategic decision-making and driving growth.
6. eCommerce: Web technology powers online shopping platforms, payment processing systems, inventory management software, and order fulfillment solutions, enabling businesses to sell products and services online and reach a global audience.
7. Supply Chain Management: Web-based supply chain management systems help businesses streamline procurement, inventory management, logistics, and distribution processes, optimizing efficiency and reducing costs.
Overall, web technology plays a central role in modern business operations, facilitating communication, collaboration, marketing, sales, customer service, and strategic decision-making across various industries and sectors.