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E-commerce has changed the way businesses sell products and services. Customers can browse, compare and buy online, and businesses can reach a larger market with lower operational costs. Along with e-commerce, digital payments (UPI, cards, wallets, net banking) have become common, enabling fast and cashless transactions.
For exam and business understanding, we need to know:
E-commerce (Electronic Commerce) means buying and selling of goods and services using electronic networks, mainly the internet. It includes online shopping, online ticket booking, digital subscriptions, and online service delivery.
Exam tip: write full form + one example for each.
Platform connects buyers and sellers. The platform earns commission, listing fees or delivery fees.
The company owns inventory and sells directly to customers. It manages warehousing and delivery.
Customer pays periodically (monthly/yearly) for continuous service/product access (OTT, software, memberships).
Service is delivered on request (food delivery, cab booking, home services).
Business point: the system updates stock, generates invoice, and tracks shipment status automatically.
Online (digital) marketing means promoting products/services using digital channels to reach customers. The goal is to create awareness, generate leads and increase sales.
Improving website content and structure so it ranks higher in organic search results. Key ideas: keywords, quality content, page speed, mobile-friendly design, backlinks.
Paid advertising on search engines to appear on top results for certain keywords.
Using platforms to engage customers and run targeted ads. Useful for brand building and customer support.
Sending professional emails to customers for offers, updates, and relationship building (must follow consent and avoid spam).
Digital payment means paying electronically without using physical cash. It includes UPI transfers, card payments, net banking, wallets, etc.
UPI connects bank accounts through an app. User authorizes payment by entering UPI PIN; funds transfer happens instantly (IMPS rails).
E-commerce platforms usually provide:
For digital payments, banks/apps provide dispute handling for:
Marketplace connects buyers and sellers and earns commission, while inventory model owns products and sells directly, controlling pricing and stock.
Online payments are fast but scams are common. Strong passwords, not sharing OTP/PIN, verifying UPI details, and quick reporting reduce financial loss.
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E-commerce has changed the way businesses sell products and services. Customers can browse, compare and buy online, and businesses can reach a larger market with lower operational costs. Along with e-commerce, digital payments (UPI, cards, wallets, net banking) have become common, enabling fast and cashless transactions.
For exam and business understanding, we need to know:
E-commerce (Electronic Commerce) means buying and selling of goods and services using electronic networks, mainly the internet. It includes online shopping, online ticket booking, digital subscriptions, and online service delivery.
Exam tip: write full form + one example for each.
Platform connects buyers and sellers. The platform earns commission, listing fees or delivery fees.
The company owns inventory and sells directly to customers. It manages warehousing and delivery.
Customer pays periodically (monthly/yearly) for continuous service/product access (OTT, software, memberships).
Service is delivered on request (food delivery, cab booking, home services).
Business point: the system updates stock, generates invoice, and tracks shipment status automatically.
Online (digital) marketing means promoting products/services using digital channels to reach customers. The goal is to create awareness, generate leads and increase sales.
Improving website content and structure so it ranks higher in organic search results. Key ideas: keywords, quality content, page speed, mobile-friendly design, backlinks.
Paid advertising on search engines to appear on top results for certain keywords.
Using platforms to engage customers and run targeted ads. Useful for brand building and customer support.
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E-commerce provides 24×7 availability, so customers can purchase anytime. It offers wider reach and convenience, allowing customers to shop from anywhere and compare prices easily. It supports faster order processing and paperless transactions like e-invoices and online receipts. (Any three points can be written.)
In marketplace model, the platform connects buyers and multiple third‑party sellers and earns commission/fees, whereas in inventory model the company owns stock and sells directly to customers. Marketplace model has wider seller variety and the platform mainly manages the technology and delivery support, whereas inventory model controls pricing, inventory and warehousing fully. In marketplace, responsibility of product listing and stock is mainly with sellers, whereas in inventory model it is with the company itself. (Any three differences can be written.)
An e-commerce transaction follows a systematic process from selecting a product to delivering it to the customer.
First, the customer visits an e-commerce website or app, searches for the product, compares features/prices and selects the required item. The customer then adds the product to the cart.
Next, during checkout, the customer enters delivery address, chooses delivery option and confirms the order details. After that, the customer selects a payment method such as UPI, debit/credit card, net banking, wallet or cash on delivery. Once payment is successful, the system generates an order confirmation and invoice/receipt.
After confirmation, the seller or warehouse processes the order. The product is picked, packed and handed over to the delivery partner. The shipment is tracked through order tracking updates until the product is delivered to the customer.
Finally, if there is any issue like wrong item, damage or size problem, the customer can request return or replacement as per the policy. In case of return, the refund is processed to the original payment method or wallet.
Thus, e-commerce transaction involves product selection, order placement, online payment, order processing, delivery and after-sales support like returns and refunds.