E-Commerce Flashcards
What is E-commerce? Give some examples.
E-commerce is the process of buying and selling of information, products and services via digital networks.
Examples: www.amazon.com and www.daraz.com.np
What is M-commerce? Give some examples.
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as mobile computing devices.
Examples: Amazon Mobile and eBay Mobile
Write the application of M-commerce.
The applications of M-commerce are:
a) Mobile Shopping
b) Mobile Payments
c) Mobile Banking
d) Mobile Ticketing
e) Mobile Wallets
f) Mobile Food Ordering and Delivery
Write features or characteristics of online payment.
The features of online payment are:
a) Applicability
b) Convenience
c) Security
d) Reliability
e) Trust
f) Scalability
g) Convertibility
Write down the benefits and limitations of E-commerce.
Four benefits of e-commerce are:
i) Faster buying/selling procedure, as well as easy to find products.
ii) Buying/selling anytime and anywhere
iii) As there are no geographical limitations, can deliver service globally
iv) Does not require physical stores
v) Low operational costs and better quality of services
vi) No need of physical company set-ups.
vii) Easy to start and manage a business. One can sell online through social media as well.
viii) Customers can review the comments and compare in different sites without moving around physically.
Four limitations of e-commerce are:
i) Lack of personal touch. We cannot touch the goods physically
ii) We cannot do any transaction without Internet access device. So, it is heavily dependent on Internet technologies
iii) Not all goods can be purchased online
iv) Easy to set up so anyone can start e-commerce site. We need to be careful about the quality of product and service delivery
v) Security issues of customer’s information
vi) Not everyone is connected to the Internet so we cannot accommodate all the people
vii) Technical failures can cause unpredictable effects on the total processes
Explain the different types of E-commerce.
E-commerce can be run in different models. Here are three basic types of E-Commerce:
i) Business-to-Consumer (B2C): Establishes electronic business relationships between a business organization and final consumers. Example: Amazon.com.
ii) Business-to-Business (B2B): Conducted between companies. Example: Alibaba.com.
iii) Consumer-to-Consumer (C2C): Conducted between consumers, typically through a third party. Example: Hamrobazaar.com.
Differentiate between traditional commerce and e-commerce.
Traditional Commerce vs E-commerce:
Definition: Physical buying and selling of goods vs Buying and selling of goods and services electronically.
Location: Brick-and-mortar stores vs Online platforms.
Accessibility: Restricted to local area vs Global accessibility.
Operating Hours: Limited by store hours vs 24/7 availability.
Inventory: Physical inventory vs Digital inventory.
Customer Interaction: In-person vs Remote interactions.
Overhead Costs: Higher costs vs Lower costs.
Product Display: Physical displays vs Digital images.
Payment: Cash/checks vs Online payment methods.
Security: Physical security vs Digital security measures.
Personalized Experience: Face-to-face vs Data-driven recommendations.
What is mobile commerce? What are its benefits?
M-commerce (Mobile commerce) refers to the process of buying and selling of goods and services through wireless handheld devices.
Benefits of mobile commerce are:
i) Added customer retention.
ii) More convenience for customers.
iii) Wider variety of products and services.
iv) Automates a businesses’ point of customer contact and sales.
Explain any four features of mobile commerce.
The four features of mobile commerce are:
a) Applicability: Extent of acceptance as payment.
b) Easy to use: System should be simple.
c) Security: Resistance to attacks and regulation of value.
d) Reliability: Smooth operation without bugs.
What is online payment? Explain the transaction of your account and merchant’s account in the bank.
Online payment or E-payment refers to the payment for buying goods or services through the Internet.
Transaction process:
i) Customer enters card details and clicks ‘pay’.
ii) Payment service provider (PSP) verifies card details and funds.
iii) PSP initiates transfer of funds to merchant account.
iv) PSP sends transaction notification.
Write the benefits of online payment.
Benefits of online payment are:
i) Instant Payment.
ii) Higher payment security.
iii) Better customer convenience.
iv) Transparency.
v) Contactless payments.
Write down the advantages and disadvantages of m-commerce.
Advantages of M-Commerce:
a) Convenient and easy to use.
b) Wider variety of products and services.
c) Saves time and energy.
d) Reduces business costs.
Disadvantages of M-commerce:
a) High start-up costs.
b) Dependence on internet access.
c) Security issues of private information.
d) Limited mobile payment options.
List out the disadvantages of online payment.
Disadvantages of online payment:
a) Third-party payment service charges.
b) Not all shops accept online payment.
c) Potential privacy issues.
d) Risk of hacking and misuse of funds.
Differentiate between e-commerce and m-commerce.
m-Commerce vs e-Commerce:
Devices: Mobile devices vs Desktop/laptop computers.
Design: Smaller screens vs Larger screens.
Portability: Highly portable vs Less portable.
Payment Methods: Mobile wallets vs Credit/debit cards.
Notifications: Push notifications vs Email notifications.
Optimization: Mobile OS vs Web browsers.
