E-commerce Basics

Questions and Answers

What does the term 'E-commerce' refer to?

The exchange of goods between two businesses without payment.

The selling of goods through traditional retail stores.

The transfer of ownership of goods from one consumer to another.

The buying and selling of goods and services over the internet. (correct)

Which type of E-commerce involves transactions between two businesses?

B2C (Business to Consumer)

C2C (Consumer to Consumer)

C2B (Consumer to Business)

B2B (Business to Business) (correct)

What is one of the key components of E-commerce?

Manual payment processing.

Physical storefronts.

Home delivery without tracking.

Online Stores. (correct)

Which of the following is NOT a benefit of E-commerce?

Reduced need for online security measures. Signup and view all the answers

What challenge does E-commerce face regarding customer interaction?

Establishing trust in a virtual environment. Signup and view all the answers

Which trend in E-commerce focuses on using smartphones for shopping?

Mobile Commerce (m-commerce) Signup and view all the answers

What is a potential downside of E-commerce related to competition?

An oversaturated market with many retailers. Signup and view all the answers

What technology trend enhances online shopping experiences by allowing virtual try-ons?

Augmented Reality (AR) Signup and view all the answers

Study Notes

Commerce

E-commerce

Definition: E-commerce refers to the buying and selling of goods and services over the internet.
Types of E-commerce:
1. B2B (Business to Business): Transactions between businesses, such as manufacturers and wholesalers.
2. B2C (Business to Consumer): Direct transactions from businesses to consumers, like online retail.
3. C2C (Consumer to Consumer): Transactions between consumers, facilitated by platforms (e.g., eBay, Craigslist).
4. C2B (Consumer to Business): Individuals sell products or services to businesses, such as freelancing platforms.
Key Components:
- Online Stores: Websites or apps where products are displayed and sold.
- Payment Gateways: Secure transaction processing systems (e.g., PayPal, Stripe).
- Logistics and Supply Chain: Management of inventory, shipping, and delivery services.
Benefits:
- Convenience: 24/7 access to products and services.
- Wider Reach: Ability to sell to a global audience.
- Lower Costs: Reduced overhead compared to traditional brick-and-mortar stores.
- Personalization: Use of data analytics to tailor user experience and recommendations.
Challenges:
- Security Risks: Cybersecurity threats including data breaches and fraud.
- Competition: High competition among online retailers.
- Customer Trust: Building trust in a virtual environment can be difficult.
- Logistical Issues: Managing shipping and handling efficiently.
Trends:
- Mobile Commerce (m-commerce): Increasing use of smartphones for shopping.
- Social Commerce: Selling directly through social media platforms.
- Subscription Services: Monthly or periodic delivery of products (e.g., streaming services, meal kits).
- Augmented Reality (AR): Enhancing online shopping experiences with AR technology for virtual try-ons.
Regulations: Must comply with legal standards regarding online transactions, data protection (e.g., GDPR), and consumer rights.
Future Outlook: Continued growth expected, driven by technological advancements and changing consumer behaviors.

E-commerce

Definition: Buying and selling of goods and services over the internet.

Types of E-commerce

B2B: Transactions between businesses, such as manufacturers and wholesalers.
B2C: Direct transactions from businesses to consumers, like online retail.
C2C: Transactions between consumers, facilitated by platforms (e.g., eBay, Craigslist).
C2B: Individuals sell products or services to businesses, such as freelancing platforms.

Key Components of E-commerce

Online Stores: Websites or apps where products are displayed and sold.
Payment Gateways: Secure transaction processing systems (e.g., PayPal, Stripe).
Logistics and Supply Chain: Management of inventory, shipping, and delivery services.

Benefits of E-commerce

Convenience: 24/7 access to products and services.
Wider Reach: Ability to sell to a global audience.
Lower Costs: Reduced overhead compared to traditional brick-and-mortar stores.
Personalization: Use of data analytics to tailor user experience and recommendations.

Challenges of E-commerce

Security Risks: Cybersecurity threats including data breaches and fraud.
Competition: High competition among online retailers.
Customer Trust: Building trust in a virtual environment can be difficult.
Logistical Issues: Managing shipping and handling efficiently.

E-commerce Trends

Mobile Commerce (m-commerce): Increasing use of smartphones for shopping.
Social Commerce: Selling directly through social media platforms.
Subscription Services: Monthly or periodic delivery of products (e.g., streaming services, meal kits).
Augmented Reality (AR): Enhancing online shopping experiences with AR technology for virtual try-ons.

E-commerce Regulations

Must comply with legal standards regarding online transactions, data protection (e.g., GDPR), and consumer rights.

Future Outlook of E-commerce

Continued growth expected, driven by technological advancements and changing consumer behaviors.