E-commerce 101

Question 1

What is e-commerce?

Answer 1

The buying and selling of goods and services electronically over the Internet.

Question 2

What are the different types of e-commerce?

Answer 2

B2B (Business-to-Business): Businesses selling goods and services to other businesses (e.g., wholesale suppliers).
B2C (Business-to-Consumer): Businesses selling goods and services directly to consumers (e.g., online retailers).
C2C (Consumer-to-Consumer): Consumers selling goods and services directly to other consumers (e.g., online marketplaces like eBay).
B2B2C (Business-to-Business-to-Consumer): A business model where one business facilitates the sale of another business’s products or services to consumers (e.g., online travel agencies selling hotel stays).

Question 3

What is an e-commerce marketplace?

Answer 3

An online platform where multiple sellers can list and sell their products (e.g., Amazon, Etsy, eBay).

Question 4

What is an online storefront?

Answer 4

A website where a business directly sells its products or services to customers.

Question 5

What are some of the benefits of e-commerce for businesses?

Answer 5

Wider customer reach
Lower overhead costs
24/7 operations
Data-driven insights

Question 6

What are some benefits of e-commerce for consumers?

Answer 6

Convenience and time-saving
Broader product selection
Price comparisons
Ability to shop from anywhere

Question 7

What is a shopping cart?

Answer 7

Software on an e-commerce site that allows customers to select and accumulate items before purchasing.

Question 8

What is a payment gateway?

Answer 8

A secure service that processes online payments, handling credit card information and transactions.

Question 9

What is the role of shipping and logistics in e-commerce?

Answer 9

Shipping and logistics ensure the physical delivery of products from the seller to the buyer.

Question 10

What is search engine optimization (SEO)?

Answer 10

The practice of optimizing website content to rank higher in search engine results, increasing visibility.

Question 11

What is email marketing?

Answer 11

A form of direct marketing using email to promote products, send offers, and retain customers.

Question 12

What does customer service look like in e-commerce?

Answer 12

Includes live chat, email support, FAQs, help centers, and social media engagement.

Question 13

Why is website design crucial in e-commerce?

Answer 13

A well-designed website builds trust, provides good user experience (UX), and drives sales.

Question 14

What is the importance of product descriptions and images?

Answer 14

High-quality descriptions and images inform customers and influence buying decisions.

Question 15

What role does social media play in e-commerce?

Answer 15

Increases brand awareness, drives traffic to the website, and facilitates customer interactions.

Question 16

Why are online reviews and ratings important?

Answer 16

They build social proof, influence purchase decisions, and provide feedback for improvement.

Question 17

Why are security measures essential for e-commerce?

Answer 17

To protect customer data from breaches, ensure secure online transactions, and maintain customer trust.

Security measures include:
SSL certificates for encrypting data transmission
Secure payment gateways to handle sensitive financial information
Firewalls to prevent unauthorized access to website and servers
Data protection policies outlining how customer data is collected, stored, and used

Question 18

How is data analytics used in e-commerce?

Answer 18

To understand customer behavior, personalize marketing, and optimize sales strategies.

Question 19

What are some emerging trends in e-commerce?

Answer 19

Mobile commerce, social commerce, subscription models, personalization.

Question 20

What is dropshipping?

Answer 20

An e-commerce model where the seller doesn’t stock inventory but partners with a supplier who ships directly to the customer.

Question 21

What are some popular e-commerce platforms?

Answer 21

Shopify, Magento, WooCommerce, BigCommerce, OSCommerce, Wix, Squarespace.

Question 22

What is omnichannel e-commerce?

Answer 22

The integration of different sales channels (online store, social media, brick-and-mortar store) to create a seamless customer experience.

Question 23

What is a conversion rate?

Answer 23

The percentage of website visitors who complete a desired action (e.g., purchase, signup).

Question 24

What are some ways to improve e-commerce conversion rates?

Answer 24

Clear call-to-actions (e.g., “Buy Now”)
Easy website navigation
Fast loading speeds
Optimized checkout process
Use of high-quality product images and videos

Question 25

What is an abandoned cart?

Answer 25

When a customer adds items to their shopping cart but leaves the website without purchasing.

Question 26

What are some strategies for recovering abandoned carts?

Answer 26

Send abandoned cart reminder emails Offer discounts or incentives Retargeting ads to remind customers about their abandoned items

Question 27

What is A/B testing in e-commerce?

Answer 27

Testing two versions of a webpage or campaign to see which performs better with customers.

Question 28

What is the difference between marketing and advertising for e-commerce?

Answer 28

Marketing: the broader, strategic process of building relationships with customers throughout their journey. Advertising: a paid component of marketing focusing on getting your message to a specific audience.

Question 29

What is social commerce?

Answer 29

Using social media platforms to directly sell products (e.g., shoppable posts on Instagram, Facebook Shops).

Question 30

What is influencer marketing?

Answer 30

Partnering with influencers (people with strong online followings) to promote products or services.

Question 31

What is affiliate marketing?

Answer 31

Paying affiliates (bloggers, websites, etc.) a commission when they promote products and generate sales.

Question 32

What is customer acquisition cost (CAC)?

Answer 32

The average cost of acquiring a new paying customer.

Question 33

What is customer lifetime value (CLV)?

Answer 33

The total amount of money a customer is expected to spend on a business throughout their relationship.

Question 34

Why is customer retention important for e-commerce?

Answer 34

It is often more cost-effective to retain existing customers than to acquire new ones.

Question 35

What are some customer retention strategies for e-commerce?

Answer 35

Loyalty programs, personalized offers, excellent customer support, and email marketing campaigns.

Question 36

What is the churn rate?

Answer 36

The percentage of customers who stop doing business with a company over a period of time.

Question 37

What are KPIs for e-commerce?

Answer 37

Key Performance Indicators: Metrics like traffic, conversion rate, average order value, and cart abandonment rate that measure the success of an e-commerce business.

Question 38

What is cross-selling?

Answer 38

Recommending complementary products to a customer during their purchase journey. (e.g., "Customers also bought...")

Question 39

What is upselling?

Answer 39

Encouraging a customer to buy a more expensive or upgraded version of a product.

Question 40

What are some post-purchase strategies in e-commerce?

Answer 40

Send thank you emails Request product reviews Offer additional product recommendations Provide excellent customer support after the sale