Detailed Answers to Important E-Commerce Questions

1. Advantages and Disadvantages of E-Commerce

Advantages:

 Convenience: E-commerce allows customers to shop from anywhere at any time,

eliminating the constraints of time and location.
 Wider Reach: Businesses can reach customers globally, expanding their market beyond
geographical boundaries.
 Cost Efficiency: Reduces the need for physical stores, thus lowering overhead costs like
rent, utilities, and salaries.
 Faster Transactions: Online transactions are quick and efficient, saving time for both
buyers and sellers.
 Personalized Services: Customer data allows for personalized marketing and better
customer service.

Disadvantages:

 Security Risks: Data breaches, hacking, and payment fraud can compromise customer
information.
 Lack of Personal Touch: Customers cannot physically inspect products, which may lead
to dissatisfaction.
 Delivery Issues: Late deliveries, damaged goods, or logistic failures can harm customer
experience.
 Technical Problems: Website downtime or slow loading can disrupt business
operations.
 Dependence on Internet: E-commerce is not accessible without internet connectivity.

2. Difference Between E-Commerce and E-Business

Basis E-Commerce E-Business

Scope Buying/selling of goods/services All online business processes
Activities Transaction-based Includes CRM, SCM, ERP
Example Amazon selling products Infosys offering IT solutions
Focus External (customers) Internal and external

3. Challenges and Barriers in E-Commerce

 Security Concerns: Fear of data theft deters customers.

 Legal and Regulatory Issues: Lack of consistent laws across countries.
 Limited Internet Access: Especially in rural or remote areas.
 Trust Deficit: Customers may not trust online sellers.
 Logistics and Delivery Problems: Timely delivery and return logistics are critical.
 High Competition: Saturated markets make it difficult to stand out.
 Technological Infrastructure: Requires constant upgrades.
4. Different Types/Models of E-Commerce with Examples

 B2B (Business to Business): Transactions between businesses (e.g., Alibaba).

 B2C (Business to Consumer): Businesses sell directly to consumers (e.g., Amazon).
 C2C (Consumer to Consumer): Consumers sell to other consumers (e.g., OLX).
 C2B (Consumer to Business): Individuals offer products/services to companies (e.g.,
Upwork).
 B2A (Business to Administration): Online services between companies and public
administration (e.g., government tenders).
 B2E (Business to Employee): Companies provide services/products to their employees
online.
 B2B2C: Businesses collaborate to serve consumers (e.g., Swiggy connects restaurants
and customers).

5. Major Factors for Growth of E-Commerce in India

 Internet and Smartphone Penetration

 Digital India and Start-Up India Initiatives
 Low-Cost Data Plans
 Young Demographic Profile
 Improved Payment Systems (UPI, wallets)
 Government Support for Digital Transactions

6. How India is Ready for E-Commerce

 Improved Infrastructure: Better internet access and smartphone use.

 Digital Payments Adoption: UPI, BHIM, and wallets.
 Start-Up Ecosystem: Booming tech start-ups.
 Government Push: Policies promoting digital transactions.
 Urbanization and Lifestyle Changes: Increased online buying behavior.

7. Difference Between Traditional Commerce and E-Commerce

Basis Traditional Commerce E-Commerce

Platform Physical stores Digital websites/apps
Timing Fixed business hours 24/7 availability
Cost Higher due to infrastructure Lower operational costs
Communication One-way (ads) Two-way (feedback, chatbots)
Reach Local/limited Global

8. What is EPS? Types of EPS

Electronic Payment System (EPS): A system that enables electronic transactions between
buyers and sellers.

Types of EPS:
  Credit Card
 Debit Card
 Net Banking
 E-Wallets (Paytm, PhonePe)
 UPI (BHIM, Google Pay)
 Smart Cards
 Cryptocurrency (e.g., Bitcoin)

9. Requirements for Digital Payments

 Bank Account
 Mobile Device or PC
 Internet Connection
 Secure Payment Gateway
 Authentication Method (OTP, PIN)
 Digital Literacy

10. Short Notes on Payment Modes

 Credit Card: Allows users to borrow money from the bank to pay for purchases.
 Debit Card: Deducts money directly from the user's bank account.
 Net Banking: Online platform to conduct transactions and payments.
 E-Money: Stored in digital wallets, used for quick payments.

11. Short Note on E-Money

E-Money is money stored electronically in banking or payment systems. It is used for online
purchases or fund transfers. Examples include Paytm, PhonePe, and Amazon Pay. It is
convenient and fast but depends on internet availability and cybersecurity.

12. Infrastructure Issues and Risks in E-Commerce

 Weak Internet Access in Rural Areas

 High Cost of Technology Upgrades
 Poor Logistic Networks
 Security Vulnerabilities
 Fraud and Phishing Attacks
 Data Storage and Processing Delays

13. Encryption and Decryption in E-Commerce

 Encryption: The process of converting data into coded format to prevent unauthorized
access.
 Decryption: Reverses encryption to restore data to its original form.
 Role in E-Commerce: Protects credit card and personal details during online
transactions.
  Example: HTTPS protocol encrypts website data.

14. Difference Between Public and Private Key

Key Public Key Private Key

Usage Encrypt data Decrypt data
Visibility Available to everyone Kept secret
Use Case Sent to sender Used by receiver

15. Ethical Issues in E-Commerce

 Privacy Concerns: Unauthorized use of personal data.

 Intellectual Property Theft: Use of copyrighted materials without permission.
 Cyberbullying and Harassment
 Fake Reviews and Misleading Ads
 Invasion of Privacy through Cookies

16. Cryptography and Digital Signature

 Cryptography: Science of securing data using encryption.

 Digital Signature: Electronic validation of identity used to authenticate the sender and
ensure document integrity.
 Used in: Legal agreements, e-invoices, online contracts.

17. Short Note on Mobile Commerce

Mobile Commerce (M-Commerce) involves conducting commercial transactions through mobile

devices. Examples include shopping apps (Flipkart), mobile banking, and UPI payments. It is
fast, flexible, and widely adopted due to mobile penetration.

18. Security Threats in E-Commerce

 Phishing Attacks
 Hacking and Unauthorized Access
 Identity Theft
 Credit Card Fraud
 Denial of Service (DoS) Attacks
 Spoofing and Email Scams

19. Emerging Trends in E-Commerce

 AI and Machine Learning for Personalization

 Voice-Assisted Shopping (Alexa, Google Assistant)
 Drone and Same-Day Deliveries
 Augmented Reality (AR) for Virtual Try-On
 Blockchain-Based Transactions
  Omnichannel Retailing
 Sustainable E-Commerce Practices

Detailed Answers to Important E-Commerce Questions (Updated for June 2024 Paper)

Q1. Write short notes on any FOUR of the following:

a) HTML Forms and Control

HTML forms are essential in e-commerce for data collection from users. They include input
fields, checkboxes, radio buttons, and dropdowns to capture customer data, product searches, or
payment details. Controls help validate inputs and streamline user interaction.

b) Encryption and Decryption in E-Commerce

Encryption encodes data to protect it during transmission (e.g., card info). Decryption converts it
back to readable form. Ensures secure transactions in HTTPS websites.

c) Mobile Commerce
Also called M-Commerce, it includes buying and selling via smartphones. Apps like Flipkart,
Amazon, and UPI platforms like Google Pay are examples. It offers convenience and speed.

d) Electronic Payment Systems (EPS)

EPS allows online payments through cards, UPI, net banking, wallets. Types: Credit card, debit
card, e-wallets, cryptocurrency. Crucial for fast and secure transactions.

e) Regulatory and Ethical Issues

Include privacy, data misuse, spamming, fake reviews, IPR violations. Regulations like IT Act
2000, GDPR, and RBI guidelines safeguard consumer rights.

f) Indian Readiness for E-Commerce

India is prepared with Digital India, UPI, smartphone penetration, startup ecosystem, GST
simplification, and a growing middle-class.

g) E-Commerce Environment
Consists of technical infrastructure, laws, payment gateways, logistics, internet access, and
customer trust. Determines success of e-commerce operations.

h) Electronic Fund Transfer (EFT)

EFT is the electronic transfer of money from one account to another. Used in banking (NEFT,
RTGS) and e-commerce transactions.

Q2. Advantages and Disadvantages of E-Commerce + Types of E-Commerce

Advantages: Global reach, low cost, convenience, speed, personalized marketing.

Disadvantages: Security risks, trust issues, tech dependence, return logistics.
Types:

 B2B – Business to Business (e.g., Alibaba)

 B2C – Business to Consumer (e.g., Amazon)
 C2C – Consumer to Consumer (e.g., OLX)
 C2B – Consumer to Business (e.g., Freelancers)
 B2G – Business to Government

Q3. Models of E-Commerce + Challenges in E-Commerce

Models: B2B, B2C, C2C, C2B, B2G, B2B2C (explained above).

Challenges:

 Data security and hacking

 Logistics and delivery
 Legal framework
 Rural internet access
 Payment gateway failures

Q4. Importance of HTML in E-Commerce + Multimedia Role

HTML helps structure web content: product pages, forms, catalogs.

Multimedia (images, video, audio) enhances product presentation, user engagement, and
decision-making.

Q5. Webpage Layout + Features

A typical layout includes:

 Header (logo, search bar)

 Navigation bar (menus)
 Product listings (with images, prices)
 Footer (contact, links)

HTML Features:

 Hyperlinks for navigation

 Frames for layout
 Text formatting: bold, color, fonts for emphasis
Q6. Infrastructure Issues and Risks in EPS + Mitigation

Issues/Risks:

 Server downtime
 Data theft
 Slow transaction speed
 Insecure payment gateways

Mitigation:

 Use SSL encryption

 Backup systems
 Two-factor authentication
 RBI compliance

Q7. E-Commerce Security Environment + Threats and Remedies

Threats:

 Phishing, malware, DoS attacks, spoofing, data breach

Remedies:

 Firewall, antivirus
 SSL encryption
 Regular audits
 User awareness training

Q8. E-Commerce Applications in Industries + Benefits

Retail: Online shopping (Flipkart)

Banking: Net banking, UPI
Travel: Ticket booking (IRCTC)
Healthcare: Online consultations (Practo)

Benefits:

 24/7 availability
 Low operational cost
  Wider reach
 Better customer engagement

Q9. Mobile Commerce Impact + Economic & Social Consideration

Impact: Revolutionized how people shop, pay, and interact.

Example: UPI apps allow instant payments.

Economic: Boosts digital economy, creates jobs, reduces cash usage.

Social: Empowers rural users, promotes financial inclusion, and improves access to services.