Ch 4- E- commerce

1.      Fill in the blanks with the appropriate words:

a.E-commerce is the activity of buying and selling goods.
b. E-commerce is conducted using the internet.
c. E-commerce saves our time and effort.
d. E-commerce provides various services such as electronic fund transfer, Internet marketing, buying and selling goods, services, etc.
e. In the C2C model of e-commerce, a consumer can sell its goods using a website.
f. In Nepal, online payment service is provided by eSewa.

2.      Write the full forms of the following:

a.B2C: Business to Consumer
b. C2C: Consumer to Consumer
c. B2B: Business to Business
d. WAP: Wireless Application Protocol

3.      State whether the following statements are True or False.

a.The backbone of e-commerce is the Internet. True
b. It is not possible to run a business 24 hours through e-commerce. False
c. E-commerce provides efficient quality service at a low cost. True
d. In e-commerce, there is geographical limitation for the business. False
e. E-commerce reduces the cost of expenditure. True
f. M-commerce is buying and selling goods and services through wireless devices. True
g. Online payment system can be used without the Internet. False

4.      Write the correct technical terms for the following:

a.Activity of buying and selling goods and services: E-commerce
b. E-commerce model where a company can sell its product to the intermediate buyer through the website and then he sells the same product to the final customer: B2B (Business to Business)
c. E-commerce model in which a consumer can sell goods to another consumer using a website: C2C (Consumer to Consumer)
d. A model of e-commerce that creates a relationship between a business organization and a consumer: B2C (Business to Consumer)
e. Viewing bank statements through mobile: Mobile Banking
f. Transferring money to the service provider using the devices connected to the Internet: Online Payment

5.      Write short notes on:

 a. Online Payment

Online payment refers to the electronic transfer of money for goods and services purchased over the internet. It is a convenient and fast method of payment that requires a secure internet connection.

 b. M-commerce

 M-commerce, or mobile commerce, is the buying and selling of goods and services through mobile devices like smartphones and tablets. It allows users to shop, bank, and make payments on the go.

6.      Answer the following questions:

 a. Define e-commerce. Write any three advantages and disadvantages of e-commerce.

E-commerce is the buying and selling of goods and services over the internet.

- Advantages:

  1. Convenience: Shop anytime, anywhere.

  2. Wider Selection: Access to products globally.

  3. Lower Costs: Often cheaper due to reduced overhead.

- Disadvantages:

  1. Security Issues: Risk of fraud and data breaches.

  2. Lack of Personal Interaction: No face-to-face customer service.

  3. Delivery Time: Takes time to receive products.

 

 b. Mention the important models of e-commerce. Explain the consumer-to-consumer model in brief.

- Important Models of E-commerce:

  1. B2B (Business to Business)

  2. B2C (Business to Consumer)

  3. C2C (Consumer to Consumer)

- Consumer-to-Consumer (C2C) Model: This model involves transactions between consumers, usually through a third-party platform like eBay, where individuals buy and sell products to each other.

 c. What is m-commerce? Write some uses of it.

- M-commerce (Mobile Commerce): M-commerce is the buying and selling of goods and services through mobile devices like smartphones and tablets.

- Uses of M-commerce:

  1. Mobile Shopping: Purchasing products via mobile apps.

  2. Mobile Banking: Managing bank accounts and transactions.

  3. Mobile Payments: Paying bills or transferring money through mobile apps.

 d. What is the B2B model of e-commerce? Explain in short.

- B2B (Business to Business) Model: The B2B model involves transactions between businesses, such as a manufacturer selling products to a wholesaler or a wholesaler selling to a retailer.

 e. Explain the B2C model of e-commerce.

- B2C (Business to Consumer) Model: The B2C model involves transactions between businesses and consumers, where businesses sell products or services directly to individual customers through online platforms.

 f. Write any two advantages and disadvantages of m-commerce.

- Advantages:

  1. Convenience: Easy access to shopping and services on the go.

  2. Speed: Fast transactions using mobile devices.

- Disadvantages:

  1. Security Risks: Vulnerable to hacking and fraud.

  2. Limited Screen Size: Smaller screens can make browsing difficult.

 g. What is online payment? Write any two advantages and disadvantages.

- Online Payment: Online payment refers to the electronic transfer of funds for goods and services purchased over the internet.

- Advantages:

  1. Speed: Instant transactions and confirmations.

  2. Convenience: Pay from anywhere with an internet connection.

- Disadvantage:

  1. Security Concerns: Risk of cyber-attacks and fraud.

Notes

1. Introduction to E-commerce

Definition: E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It also includes online transactions and electronic data interchange

Types of E-commerce:

• B2B (Business to Business): Transactions between businesses.
• B2C (Business to Consumer): Transactions between businesses and consumers.
• C2C (Consumer to Consumer): Transactions between consumers, usually facilitated by a third party.
• C2B (Consumer to Business): Transactions where consumers offer products or services to businesses.

2. Advantages of E-commerce

• Convenience: Customers can shop 24/7 from anywhere with internet access.
• Wider Selection: E-commerce allows access to a global marketplace, offering more choices.
• Lower Costs: Reduced overhead costs compared to physical stores, often leading to lower prices.
• Personalized Shopping Experience: Data collected through e-commerce can be used to personalize customer experiences.
• Efficient Transactions: Digital transactions are faster and more efficient, with immediate payments and confirmations.

3. Disadvantages of E-commerce

• Security Issues: Risks of data breaches, fraud, and cyber-attacks.
• Lack of Personal Interaction: Absence of face-to-face communication may deter some customers.
• Dependence on Technology: E-commerce relies heavily on the internet and digital infrastructure, which can be a disadvantage in areas with poor connectivity.
• Delivery Time: Unlike instant purchases in physical stores, e-commerce requires time for product delivery.
• Return and Refund Issues: Handling returns and refunds can be more complicated and time-consuming.

4. E-commerce Platforms

• Online Marketplaces: Websites like Amazon, eBay, and Alibaba that connect buyers and sellers.
• E-commerce Websites: Dedicated websites created by businesses to sell their products directly to consumers.
• Social Media Platforms: Using social media channels like Facebook, Instagram, and WhatsApp to promote and sell products.

5. E-payment Systems

• Definition: E-payment systems allow users to pay for goods and services electronically.
• Types of E-payment Systems:
• Credit/Debit Cards: Commonly used for online purchases.
• Digital Wallets: Mobile apps like PayPal, Google Pay, and Apple Pay that store payment information.
• Net Banking: Direct transfers from a customer's bank account to the seller.
• Cryptocurrency: Digital currency like Bitcoin used for transactions.

6. E-commerce Security

• Security Measures:
• SSL Certificates: Ensure secure communication between the user's browser and the website.
• Encryption: Protects sensitive data during transactions.
• Two-Factor Authentication (2FA): Adds an extra layer of security by requiring a second form of verification.
• Firewalls: Prevent unauthorized access to a website’s servers.
• Regular Audits: Ensures the e-commerce platform complies with security standards.

7. Legal and Ethical Issues in E-commerce

• Privacy Concerns: Protecting consumer data from unauthorized use.
• Intellectual Property Rights: Respecting copyrights, trademarks, and patents in online content and products.
• Consumer Protection: Ensuring fair trade practices and resolving disputes in online transactions.
• Taxation: Properly accounting for and paying taxes on e-commerce transactions.

8. Future of E-commerce

• Mobile Commerce (M-commerce): The growth of mobile device usage for shopping and transactions.
• Artificial Intelligence: Personalized recommendations, chatbots for customer service, and automation of processes.
• Omnichannel Retailing: Integration of online and offline channels to provide a seamless shopping experience.
• Global Expansion: E-commerce businesses expanding their reach to international markets.

M-commerce (Mobile Commerce)

1. Introduction

• Definition: Mobile commerce, or M-commerce, refers to the buying and selling of goods and services through mobile devices such as smartphones and tablets. It is a subset of e-commerce and is facilitated by mobile applications, websites, and SMS.

2. Types of M-commerce

• Mobile Shopping: Using mobile apps or websites to purchase products and services.
• Mobile Banking: Conducting banking transactions, such as transfers, bill payments, and account management, through mobile devices.
• Mobile Payments: Making payments using mobile devices, including through apps like Google Pay, Apple Pay, and mobile wallets.
• Mobile Ticketing: Purchasing and storing tickets for events, transportation, and other services directly on mobile devices.

3. Advantages of M-commerce

• Convenience: Allows users to shop, bank, and pay bills on the go, anytime, and anywhere.
• Personalization: Mobile apps can use data to offer personalized recommendations and deals based on user preferences and behavior.
• Accessibility: Expands access to online services for people in regions where mobile devices are more prevalent than computers.
• Quick Payments: Mobile payments are fast and often more secure, thanks to technologies like biometrics and NFC (Near Field Communication).

4. Challenges of M-commerce

• Security Concerns: Mobile devices are vulnerable to hacking, phishing, and malware, making secure transactions a priority.
• Limited Screen Size: The small screen size of mobile devices can make navigation and product viewing more challenging.

Model Questions

Short answer questions.

1. Define E-Commerce.

E-Commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. It involves various online transactions, such as online shopping, electronic payments, and online banking

2. What is the business done through the internet?

The business conducted through the internet encompasses a wide range of activities, including online retail, digital services, advertising, content creation, and more.

3. Mention the benefits and limitations of E-Commerce.

Benefits of E-Commerce include global reach, convenient shopping, reduced overhead costs, and the ability to operate 24/7. However, it also has limitations like security concerns, lack of physical interaction, and potential technical issues.

4.List the different types of E-Commerce.

There are several types of E-Commerce: 

B2C (Business-to-Consumer), 

B2B (Business-to-Business), 

C2C (Consumer-to-Consumer)

5.What is M-Commerce? Give some examples.

M-Commerce, or mobile commerce, refers to E-Commerce transactions conducted through mobile devices. Examples include mobile banking, mobile ticketing, and in-app purchases.

6.What is Online Payment? Write the different forms of e-payment in Nepal.

Online payment involves electronic transactions to pay for products or services. 

In Nepal, various forms of e-payment include bank transfers, mobile wallets like Khalti and eSewa, credit/debit card payments, and online banking.