Introduction to E-Commerce: Meaning, Scope, Models (B2B/B2C/C2C/C2B) and Growth Drivers Questions

Question 1

Define e-commerce.

Accepted Answer

E-commerce is the process of buying and selling goods/services using electronic networks (mainly the internet), including **ordering**, **payment**, and **fulfilment** (concept).

Question 2

Write any one example of B2C e-commerce.

Accepted Answer

A business selling products online directly to customers (e.g., an online electronics store) is **B2C** (concept).

Question 3

C2C means consumer-to-consumer transactions. (True/False)

Accepted Answer

True. **C2C** platforms enable consumers to sell to other consumers (concept).

Question 4

E-business is broader than e-commerce. (True/False)

Accepted Answer

True. **E-business** includes internal digital processes (ERP/CRM/SCM) in addition to online buying/selling (concept).

Question 5

State one growth driver of e-commerce.

Accepted Answer

Growth of **digital payments** (UPI/cards/wallets) and wider internet/smartphone usage are key drivers (any one) (concept).

Question 6

D2C means direct-to-consumer selling by brands. (True/False)

Accepted Answer

True. **D2C** refers to brands selling directly via their own website/app (concept).

Question 7

Differentiate e-commerce and e-business (any three points) using a table.

Accepted Answer

Difference (exam-style):

| Basis | **E-commerce** | **E-business** |
|---|---|---|
| Scope | online buying/selling transactions | broader: includes internal digital processes |
| Focus | customer-facing order/payment/fulfilment | includes ERP/CRM/SCM/HR systems |
| Example | online checkout | digital supply chain + CRM + procurement |

Any three differences are sufficient.

Question 8

Explain B2B, B2C, C2C and C2B models with one example each (use a table).

Accepted Answer

Models (concept):

| Model | Meaning | Example |
|---|---|---|
| **B2B** | business sells to business | supplier portal selling raw materials |
| **B2C** | business sells to consumer | online retail store |
| **C2C** | consumer sells to consumer | resale marketplace |
| **C2B** | individual sells service/product to business | freelancer platform |

Any three (or all four) with correct examples are acceptable.

Question 9

List any three growth drivers of e-commerce (exam points) and add a small table.

Accepted Answer

Any three growth drivers (exam points):

| Driver | How it helps (concept) |
|---|---|
| **Internet & smartphones** | more users can browse and buy online |
| **Digital payments** | easy checkout (UPI/cards/wallets) |
| Logistics networks | faster delivery and better returns |
| Trust features | ratings/reviews and easy refunds (concept) |

Write any three points with one-line explanation.

Question 10

Write the key components/steps of an e-commerce transaction (any three steps) and draw a small flowchart.

Accepted Answer

Key steps (concept):

- product discovery and selection (search/ads)
- cart → **checkout** → **payment**
- order processing and **delivery/fulfilment**
- after-sales support/returns (concept)

Flowchart:

```text
Discovery -> Cart -> Checkout/Payment -> Fulfilment -> Support/Returns
```

Question 11

Explain the scope of e-commerce (any three areas) with one example each (use a table).

Accepted Answer

Scope means where e-commerce is applied (concept). Any three:

| Area | What happens online | Example |
|---|---|---|
| **Retail** | product listing, ordering, delivery | fashion/electronics store |
| **Travel** | booking and ticketing | flight/hotel booking |
| **Digital services** | subscription/service delivery online | online courses/OTT |
| **B2B procurement** | bulk purchasing | supplier portal |

Write any three with correct examples.

Question 12

Differentiate B2C and D2C (any three points) using a small table.

Accepted Answer

Difference (concept):

| Basis | **B2C** | **D2C** |
|---|---|---|
| Channel | business sells online (often via marketplace) | brand sells via its **own website/app** |
| Intermediary | may involve platform/intermediary | fewer intermediaries (more direct) |
| Data/control | shared/limited control on marketplaces | better control over **customer data** and experience |

Any three points with one example are enough.

Question 13

Explain e-commerce: meaning, scope and models (exam-style) with headings and a table.

Accepted Answer

### Meaning
**E-commerce** is buying and selling goods/services through electronic networks, covering **ordering**, **payment**, and **fulfilment** (concept).

### Scope
It is used in retail, travel/ticketing, digital services (education/OTT), B2B procurement, and fintech/payments (concept).

### Models (table)

| Model | Meaning | Example |
|---|---|---|
| **B2B** | business → business | wholesale portal |
| **B2C** | business → consumer | online retail |
| **C2C** | consumer → consumer | resale marketplace |
| **C2B** | consumer → business | freelancing platform |

Conclusion: E-commerce uses technology to expand reach and convenience, but requires trust, security and logistics (concept).

Question 14

Discuss growth drivers of e-commerce and write advantages vs limitations (exam-style) using a table.

Accepted Answer

### Growth drivers (any four)
- **Internet & smartphone** penetration
- **Digital payments** (UPI/cards/wallets)
- improved **logistics** and last-mile delivery
- trust enablers: reviews, easy returns and customer support (concept)

### Advantages vs limitations (table)

| Aspect | Points |
|---|---|
| **Advantages** | convenience, wider reach, price comparison, data-driven personalization |
| **Limitations** | delivery delays, fraud risk, no physical trial, high returns cost (concept) |

Conclusion: Growth is driven by technology and infrastructure, while trust/security and logistics remain key challenges (concept).

Question 15

Explain key risks and challenges in e-commerce (security, trust and logistics) and suggest basic controls (exam-style) with a table.

Accepted Answer

### Key risks/challenges
E-commerce faces issues of **security**, **trust**, and **logistics** (concept).

| Area | Challenge | Basic control (concept) |
|---|---|---|
| **Security** | data breach, payment fraud | encryption/2FA, fraud monitoring |
| **Trust** | fake sellers/reviews, quality issues | verification, ratings moderation, clear policies |
| **Logistics** | last-mile delays, returns cost | inventory planning, reliable courier network, reverse logistics |

Conclusion: Managing these risks improves customer experience and long-term sustainability (concept).

Basis	E-commerce	E-business
Scope	online buying/selling transactions	broader: includes internal digital processes
Focus	customer-facing order/payment/fulfilment	includes ERP/CRM/SCM/HR systems
Example	online checkout	digital supply chain + CRM + procurement

Introduction to E-Commerce: Meaning, Scope, Models (B2B/B2C/C2C/C2B) and Growth Drivers

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