Very Short Question and Answers - E-Commerce

Q 1.

What is E-Commerce?

Ans:

E-Commerce or Electronic Commerce refers to buying and selling of goods or services over the internet, including the transfer of money, funds, and data.

Q 2.

Name the four main models of E-Commerce.

Ans:

The four main models of E-Commerce are Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer (C2C), and Consumer to Business (C2B).

Q 3.

Which E-Commerce model involves transactions only between companies?

Ans:

Business to Business (B2B) model involves transactions only between companies, such as manufacturers, wholesalers, and retailers.

Q 4.

Give two examples of companies using the Business to Consumer (B2C) model.

Ans:

Amazon and Flipkart are examples of companies using the Business to Consumer (B2C) E-Commerce model.

Q 5.

In which E-Commerce model do consumers sell directly to other consumers?

Ans:

In the Consumer to Consumer (C2C) model, consumers sell directly to other consumers.

Q 6.

What is the Consumer to Business (C2B) model in E-Commerce?

Ans:

In the Consumer to Business (C2B) model, consumers provide goods or services to businesses, such as freelancers selling their services to companies.

Q 7.

Mention any two examples of E-Commerce platforms.

Ans:

Two examples of E-Commerce platforms are eBay and OLX.

Q 8.

List one main advantage of E-Commerce for sellers.

Ans:

One main advantage for sellers is global reach, allowing them to access buyers worldwide without location barriers.

Q 9.

How does E-Commerce benefit buyers regarding convenience?

Ans:

E-Commerce allows buyers to shop 24/7, providing

convenience

as websites are functional at all times.

Q 10.

What impact does E-Commerce have on transaction costs?

Ans:

E-Commerce helps lower transaction costs by eliminating many fixed expenses of physical shops.

Q 11.

Explain how E-Commerce improves customer service.

Ans:

E-Commerce allows quick delivery of goods and rapid response to customer complaints, saving time and effort.

Q 12.

How does E-Commerce facilitate direct communication between customers and businesses?

Ans:

E-Commerce removes intermediaries, allowing direct and quick communication and transactions between customers and businesses.

Q 13.

State one disadvantage of E-Commerce related to its initial setup.

Ans:

A major disadvantage is the high start-up cost for setting up hardware, software, training, and ongoing maintenance.

Q 14.

What is a potential risk associated with E-Commerce businesses?

Ans:

There is a high risk of failure in E-Commerce businesses despite the advantages.

Q 15.

Why can E-Commerce feel impersonal to customers?

Ans:

E-Commerce lacks the warmth of personal interaction, making it feel impersonal for certain services and products.

Q 16.

Give an example of a product or service where personal touch is important and E-Commerce can be a disadvantage.

Ans:

Personal touch is important in services like interior designing or in the jewelry business, where E-Commerce can be a disadvantage.

Q 17.

Name a major security concern in E-Commerce.

Ans:

A major security concern is credit card theft and identity theft during online transactions.

Q 18.

What are fulfillment problems in E-Commerce?

Ans:

Fulfillment problems refer to issues like shipping errors, late deliveries, or mix-ups that can make customers dissatisfied.

Q 19.

How does E-Commerce reduce barriers related to place?

Ans:

E-Commerce removes place barriers by enabling sellers and buyers to meet virtually, regardless of their location.

Q 20.

What is meant by 'global reach' in the context of E-Commerce?

Ans:

'Global reach' means the ability of sellers and buyers to interact and conduct transactions worldwide through E-Commerce platforms.

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