
E-Commerce and E-Governance: Notes
- Categories E-Services, E-Com & E-Gov
One of the most popular activity on the Web is shopping. E-Commerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at websites. This post contains notes on the chapter in the form of question and answers.
- What is commerce?
Ans.
Commerce is an important part of a business. It is nothing but buying and selling of goods, which means when we buy a product or service to others, and then it is called as commerce.
- What is E-commerce?
Ans.
E-commerce can be broadly defined as the process of buying and selling of goods or services using an electronic medium such as the Internet. It is also referred as a paperless exchange of business information using EDI, E-mail, electronic fund transfer, etc.
- List the differences between Traditional commerce and E-commerce.
Ans.
Traditional commerce | E-commerce |
It focuses on the exchange of products and services through personal interactions, so it is manual. | Trading activities are online via the internet and can be considered automatic. |
Traditional commerce is limited to business hours i.e. during the day | It is 24×7; it can be done anytime day and night. |
Traditional commerce provides face to face customer interaction. | It can be termed as screen to face interaction. |
It is limited to a particular geographic location. | It is global and has no physical limitation. |
Modes of payment: cash, cheques and credit cards. | Modes of payment: bank transfer, credit cards, e-wallet, mobile payment and many more. |
Delivery of goods or services is instant. | Delivery of goods or services takes some time. |
Its scope is local. | Its scope is global. |
- Name some advantages of E-Commerce.
Ans.
- Global scope: It provides the sellers with a global reach. Now sellers and buyers can meet in the virtual world, without a geographical barrier.
- Electronic transaction: E-commerce reduces the paper work and significantly lowers the transaction cost. It enables the use of credit cards, debit cards, smart cards, electronic fund transfer via bank’s website and other modes of electronic payment.
- Cost saving: E-commerce application provides users with more options to compare and select the cheaper and better option. It helps in reducing services such as healthcare, the cost of searching a product, etc. E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.
- Anytime shopping: One other great advantage is the convenience. A customer can shop 24×7. The website is functional at all times; it does not have working hours like a shop.
- No intermediaries: Electronic commerce also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions.
- Public services: E-commerce helps the government to deliver public e education, social services at a reduced cost and in an improved manner.
- List disadvantages of E-Commerce.
Ans.
- Setup cost: The setup of the hardware and the software, the training cost of employees, the constant maintenance and upkeep are all quite expensive
- Physical presence: This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewelry business.
- Security: Security is another area of concern. Credit card theft, identity theft etc. remain big concerns with the customers.
- Goods delivery: There may arrive some problem with fulfillment of order. Even after the order is placed there can be problems with shipping, delivery, mix-ups etc. This leaves the customers unhappy and dissatisfied
- What are the types of E-Commerce?
Ans.
- Business – to – Consumer (B2C): In B2C model, business sells its products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same. The website will then send a notification to the business organization via email and the organization will dispatch the product/ goods to the customer. These B2C businesses are online retailers. Example: Amazon, Flipchart, etc.
- Business – to – Business (B2B): In B2B model, business sells its products to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company’s website and after receiving the consignment, sells the product to the final customer who comes to buy the product at one of its retail outlets. Example: Tata communications (network provider).
- Consumer – to – Consumer (C2C): In C2C model, consumer helps consumer to sell their assets like residential property, cars, motorcycles , or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Example OLX, Quirk, online auction.
- Consumer – to – Business (C2B): In this model, consumers have products or services of value that can be consumed by businesses. For example, the comparison of interest rates of personal loan/car loan provided by various banks via websites. A business organization that fulfills the consumer’s requirement within the specified budget approaches the customer and provides its services. For e.g. – A blog can be written by an author for a business to improve sale of products, eBay.
- What are the phases of a trade cycle?
Ans.
- Pre-sales
- Execution
- Settlement
- After-sales
- Enlist the different modes of payment.
Ans.
- Credit cards
- Mobile payments
- Bank transfers
- E-wallets
- What is M-commerce?
Ans.
- It is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.
- It enables users to access online shopping platforms without needing to use a desktop computer. Some of application of M-Commerce are mobile banking, ticket booking, E-bill payment, online auctions, stock market trading.
- What is the use of social commerce form?
Ans.
- Social commerce is a form of electronic commerce that involves social media, online media that supports social interaction.
- It enables shoppers to get advice from trusted individuals, find goods and services and then purchase them.
- The social networks that spread this advice have been found to increase the customer’s trust in one retailer over another.
- It uses networking websites such as Facebook, Instagram and Twitter as vehicles to promote and sell products and services.
- The success of a social commerce campaign is measured by the degree to which consumers interact with the company’s marketing through retweets, likes and shares.
- Write note on E-Commerce technology- Electronic Data Interchange (EDI)
Ans.
- EDI is the electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than on paper.
- Business entities conducting business electronically are called trading partners.
- Many business documents can be exchanged using EDI; two most common documents are purchase orders and invoices.
- It is computer-to-computer interchange of strictly formatted documents via telecommunications or physically transported on electronic storage media.
- What is E-Governance?
Ans.
- It signifies the implementation of information technology in the government processes and functions so as to cause simple, moral, accountable and transparent governance.
- The basic purpose of e-governance is to simplify processes for all, i.e. government, citizens, businesses etc. at National, State and local levels.
- Hence, E-governance delivers SMART government. (S- Simple, M-Moral, A-Accessible, R-Responsive, T-Transparent Government)
- List the advantages of E-Governance.
Ans.
- Reduced corruption
- High transparency
- Increased convenience
- Direct participation of constituents
- Reduction in overall cost.
- Expanded reach of government
- Enlist the types of E-Governance.
Ans.
- Government-to-Citizen (G2C)
- Government-to-Business (G2B)
- Government-to-Government (G2G)
- Government-to-Employee (G2E)
- What is Government-to-Citizen E-Governance?
Ans.
- This refers to the government services which enable citizens to get access to wide variety of public services.
- Most of the government services fall under G2C. It helps the ordinary people reduce the time and cost to conduct a transaction.
- A citizen can have access to the services anytime from anywhere.
- Many services like license renewals and paying tax are essential in G2C. It also focuses on geographic land barriers.
- Explain Government-to-Business (G2B) type E-Governance.
Ans.
- The Government to business is the exchange of services between Government and Business organizations.
- G2B provides access to relevant forms needed to comply.
- The G2B also consists of many services exchanged between business sectors and government.
- It aims at eliminating paper work, saving time, cost and establish transparency in the business environment, while interacting with government.
- What is Government-to-Government (G2G)?
Ans.
- The Government-to-Government refers to the interaction between different government departments, organizations and agencies.
- In G2G, government agencies can share the same database using online communication. The government departments can work together.
- G2G services can be at the local level or the international level. Likewise, it provides safe and secure inter-relationship between domestic or foreign government.
- Write a note on Government-to-Employee (G2E).
Ans.
- The Government-to-Employee is the internal part of G2G sector. G2E aims to bring employees together and improvise knowledge sharing.
- It provides online facilities to the employees like applying for leave, reviewing salary payment record and checking the balance of holiday.
- The G2E sector provides human resource training and development.
- G2E is also the relationship between employees, government institutions and their management.
- List some effective examples of successful implementation of E-Governance projects.
Ans.
- e-Mitra project (Rajasthan)
- e-Seva project (Andhra Pradesh)
- CET (Common Entrance Test)
- AADHAAR card
- DigiLocker
- Bharat Bill Payment System
- PAN
- EPFO services
- PMKVY services
- Enlist security measures in E-Commerce.
Ans.
- Encryption
- Digital signature
- Digital certificate
- What is encryption?
Ans.
Encryption is widely used on the internet to protect user information being sent between a browser and a server. This includes passwords, payment information and other personal information that should be considered private.
- What are the types of encryption?
Ans.
- Symmetric (Shared Secret Encryption )
- Asymmetric (Public-Key Encryption )
- What is the use of digital signatures?
Ans.
A digital signature is also known as an electronic signature. A digital signature guarantees the authenticity of an electronic document or message in digital communication and uses encryption technique (asymmetric cryptography) to provide proof of original and unmodified documentation. Digital signatures are used in e-commerce, software distribution, and financial transactions. This is the direct transfer of information between two partners.
- What is a digital certificate?
Ans.
A Digital Certificate is an electronic “password” that allows a person or organization to exchange data securely over the Internet using the public key infrastructure (PKI). Digital Certificate is also known as a public key certificate or identity certificate. In this, information is transferred between two authorized partners who have digital certificates issued by some supreme authority.
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