Free Solved Question Paper of BCS-062 : E-COMMERCE (December 2023)

1. (a) What is an e-paper? List the advantages and disadvantages of e-papers. (10 marks)

Answer :

Definition of e-Paper: Electronic paper (e-paper) is a display technology designed to mimic the appearance of ordinary ink on paper. It reflects light like ordinary paper and is capable of holding text and images indefinitely without drawing electricity, while allowing the image to be changed later.

Advantages of e-Papers:

1. Environmental Benefits:
   • Reduces paper consumption
   • Eliminates printing costs
   • Reduces carbon footprint
   • No physical delivery required
2. Cost Effectiveness:
   • Lower production costs
   • No printing and distribution expenses
   • Reduced subscription fees
   • No storage costs
3. Accessibility & Convenience:
   • Instant availability
   • Global access
   • Searchable content
   • Multiple language options
4. Technical Advantages:
   • Multimedia integration
   • Hyperlinks and navigation
   • Zoom functionality
   • Archival capabilities

Disadvantages of e-Papers:

1. Technical Limitations:
   • Requires electronic devices
   • Battery dependency
   • Screen readability issues
   • Internet connectivity required
2. User Experience:
   • Eye strain from prolonged reading
   • Less tactile experience
   • Difficulty in annotation
   • Navigation challenges
3. Economic Impact:
   • Job losses in printing industry
   • Reduced newspaper vendor income
   • Digital divide issues
   • Initial technology costs

e-Paper Technology Comparison:

1. (b) What is meant by Internet Commerce? Explain any two main business models of various companies that do commerce over Internet. (10 marks)

Answer :

Internet Commerce Definition: Internet Commerce refers to the buying and selling of goods and services over the Internet. It encompasses all commercial transactions conducted electronically over computer networks, including online retail, digital marketplaces, and electronic payment systems.

Key Characteristics:

• Digital transactions
• Global reach
• 24/7 availability
• Automated processes
• Reduced operational costs

Two Main Business Models:

1. Online Marketplace Model:

• Definition: Platform that connects buyers and sellers, facilitating transactions between multiple parties
• Examples: Amazon, eBay, Flipkart, Alibaba
• Key Features:
  • Multiple vendors on single platform
  • Commission-based revenue
  • Centralized payment system
  • Customer reviews and ratings
  • Logistics and fulfillment services
• Revenue Streams:
  • Transaction fees
  • Listing fees
  • Advertising revenue
  • Subscription fees

2. Direct-to-Consumer (D2C) Model:

• Definition: Manufacturers sell directly to consumers through their own online platforms
• Examples: Nike.com, Dell, Tesla, Warby Parker
• Key Features:
  • Brand owns the customer relationship
  • Higher profit margins
  • Complete control over customer experience
  • Direct customer feedback
  • Customization capabilities
• Revenue Streams:
  • Product sales
  • Subscription services
  • Premium memberships
  • Customization fees

Business Models Comparison:

2. (a) Explain any two EDI standards. (5 marks)

Answer :

EDI Standards: Electronic Data Interchange standards are sets of rules and guidelines that define the format and structure of electronic business documents exchanged between trading partners.

1. ANSI X12 Standard:

• Origin: Developed by the American National Standards Institute
• Usage: Primarily used in North America
• Structure:
  • Transaction sets for different document types
  • Segments contain related data elements
  • Data elements represent individual data items
• Common Transaction Sets:
  • 850 - Purchase Order
  • 810 - Invoice
  • 856 - Advance Ship Notice
  • 997 - Functional Acknowledgment
• Features:
  • Hierarchical structure
  • Error detection capabilities
  • Flexible data representation

2. UN/EDIFACT Standard:

• Origin: United Nations Electronic Data Interchange for Administration, Commerce and Transport
• Usage: International standard used globally
• Structure:
  • Messages equivalent to transaction sets
  • Segments contain composite data elements
  • Data elements with specific formats
• Common Message Types:
  • ORDERS - Purchase Order
  • INVOIC - Invoice
  • DESADV - Despatch Advice
  • CONTRL - Syntax and Service Report
• Features:
  • Unicode support
  • Multilingual capabilities
  • Standardized code lists

EDI Standards Comparison:

2. (b) Explain any five strategies to increase visibility of your e-commerce website. (5 marks)

Answer :

Five Key Strategies for E-commerce Website Visibility:

1. Search Engine Optimization (SEO):
   • Keyword research and optimization
   • On-page SEO (meta tags, headers, content)
   • Technical SEO (site speed, mobile-friendliness)
   • Quality backlink building
   • Local SEO for geographic targeting
2. Content Marketing:
   • Create valuable blog content
   • Product guides and tutorials
   • Video marketing and demonstrations
   • User-generated content
   • Regular content updates
3. Social Media Marketing:
   • Active presence on relevant platforms
   • Engaging with customers
   • Social media advertising
   • Influencer partnerships
   • Social commerce integration
4. Pay-Per-Click (PPC) Advertising:
   • Google Ads campaigns
   • Shopping ads for products
   • Social media advertising
   • Retargeting campaigns
   • Local advertising
5. Email Marketing:
   • Newsletter campaigns
   • Abandoned cart recovery
   • Personalized recommendations
   • Promotional campaigns
   • Customer retention emails

Visibility Strategy Framework:

3. (a) What are the different components in the online delivery of goods and services? Explain their role. (5 marks)

Answer :

Components of Online Delivery System:

1. Order Management System (OMS):
   • Processes customer orders
   • Manages inventory levels
   • Coordinates with fulfillment centers
   • Tracks order status
2. Inventory Management:
   • Real-time stock monitoring
   • Automated reorder points
   • Multi-location inventory tracking
   • Prevents overselling
3. Warehouse Management System (WMS):
   • Optimizes storage locations
   • Manages picking and packing
   • Coordinates with shipping
   • Quality control processes
4. Logistics and Shipping:
   • Carrier selection and management
   • Shipping rate calculation
   • Package tracking
   • Delivery scheduling
5. Customer Communication:
   • Order confirmation emails
   • Shipping notifications
   • Delivery updates
   • Customer support integration

Online Delivery Workflow:

3. (b) How can E-commerce portals make shopping secure? (5 marks)

Answer :

Security Measures for E-commerce Portals:

1. SSL/TLS Encryption:
   • Encrypts data transmission
   • Protects sensitive information
   • Verified by digital certificates
   • Displays security indicators
2. Secure Payment Processing:
   • PCI DSS compliance
   • Payment gateway integration
   • Tokenization of card details
   • 3D Secure authentication
3. User Authentication:
   • Strong password policies
   • Two-factor authentication (2FA)
   • CAPTCHA verification
   • Account lockout mechanisms
4. Security Monitoring:
   • Fraud detection systems
   • Real-time transaction monitoring
   • Suspicious activity alerts
   • Security audits and testing
5. Data Protection:
   • Regular security backups
   • Data encryption at rest
   • Privacy policy compliance
   • Secure data storage practices

Security Layers Diagram:

4. (a) What is meant by Inter-organisational e-commerce? How does it differ from Intra-organisational e-commerce? (5 marks)

Answer :

Inter-organisational e-commerce: Electronic commerce transactions that occur between different organizations, involving the exchange of goods, services, or information across organizational boundaries.

Characteristics of Inter-organisational e-commerce:

• Multiple organizations involved
• Cross-boundary transactions
• B2B, B2C, C2C models
• External stakeholder engagement
• Complex security requirements

Intra-organisational e-commerce: Electronic commerce activities that occur within a single organization, involving internal departments, employees, or subsidiaries.

Key Differences:

Comparison Diagram:

4. (b) List any five cyber offences and related penalties under IT Act, 2000. (5 marks)

Answer :

Five Cyber Offences under IT Act, 2000:

1. Unauthorized Access to Computer Systems (Section 66):
   • Offence: Accessing computer system without permission
   • Penalty: Imprisonment up to 3 years or fine up to ₹5 lakhs or both
   • Examples: Hacking, unauthorized login
2. Data Theft (Section 43):
   • Offence: Stealing, copying, or extracting data without authorization
   • Penalty: Compensation up to ₹1 crore to affected party
   • Examples: Customer data theft, intellectual property theft
3. Cyber Terrorism (Section 66F):
   • Offence: Threatening national security through cyber means
   • Penalty: Imprisonment for life
   • Examples: Attacking critical infrastructure, spreading terror
4. Identity Theft (Section 66C):
   • Offence: Fraudulently using someone else's digital identity
   • Penalty: Imprisonment up to 3 years and fine up to ₹1 lakh
   • Examples: Using stolen passwords, impersonation
5. Publishing Obscene Content (Section 67):
   • Offence: Publishing or transmitting obscene material online
   • Penalty: First conviction - 3 years imprisonment and ₹5 lakh fine
   • Second conviction - 5 years imprisonment and ₹10 lakh fine
   • Examples: Pornographic content, offensive material

Penalty Structure Overview:

5. (a) Explain the benefits of E-commerce to organisations, customers and society at large. (5 marks)

Answer :

Benefits of E-commerce:

1. Benefits to Organizations:

• Cost Reduction:
  • Lower operational costs
  • Reduced physical infrastructure
  • Automated processes
  • Minimal staff requirements
• Market Expansion:
  • Global reach and access to new markets
  • 24/7 business availability
  • Personalized marketing and targeting
• Improved Customer Insights:
  • Data analytics for better decision making
  • Customer behavior tracking
  • Enhanced customer relationship management (CRM)

2. Benefits to Customers:

• Convenience:
  • Shop anytime, anywhere
  • Home delivery
  • Easy product comparison
• Wider Choice:
  • Access to global products and brands
  • More options and better prices
• Personalization:
  • Personalized recommendations
  • Customized offers and discounts
• Transparency:
  • Product reviews and ratings
  • Detailed product information

3. Benefits to Society:

• Economic Growth:
  • Boosts entrepreneurship and innovation
  • Creates new job opportunities
• Environmental Benefits:
  • Reduces need for physical stores
  • Less paper usage and travel
• Social Inclusion:
  • Enables access for rural and remote areas
  • Promotes digital literacy

Summary Table:

Benefits Diagram:

5. (b) With the help of a block diagram, explain the E-commerce workflow. (5 marks)

Answer :

E-commerce Workflow: The workflow of an e-commerce transaction involves several key steps from order placement to delivery and post-sales support.

1. Customer Browses Website: Searches and selects products/services.
2. Order Placement: Adds items to cart and completes checkout.
3. Payment Processing: Secure payment via gateway.
4. Order Fulfillment: Warehouse picks, packs, and ships order.
5. Delivery: Logistics partner delivers to customer.
6. Customer Support: Handles returns, queries, and feedback.

Block Diagram: