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GNDU Question Paper-2022
Bachelor of Commerce
(B.Com) 5
th
Semester
E-COMMERCE
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. Explain E-Commerce and its features in detail.
2. Briefly discuss challenges and limitations of E-Commerce.
SECTION-B
3. Discuss various influencing factors of Successful E-Commerce.
4. Explain Business to Business and Business to Customers business models.
SECTION-C
5. Explain website and its components in detail.
6. Explain emergence of Internet as Competitive Advertising Media.
SECTION-D
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7. Explain security issues and its solutions on Electronic Payment System.
8. Explain Legal and ethical issues in E-Commerce.
GNDU Answer Paper-2022
Bachelor of Commerce
(B.Com) 5
th
Semester
E-COMMERCE
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. Explain E-Commerce and its features in detail.
Ans: What is E-Commerce?
E-Commerce, short for Electronic Commerce, is the buying and selling of goods and services
using the internet and electronic platforms. It’s not limited to physical products — it
includes services, digital goods, subscriptions, and even online banking transactions.
In simple words:
E-Commerce is business without borders, conducted through clicks instead of bricks.
It involves:
• Sellers (businesses or individuals)
• Buyers (consumers or other businesses)
• A digital platform (website, mobile app, social media store)
• Electronic payment systems (cards, UPI, wallets, net banking)
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• Logistics (delivery of goods or access to services)
How E-Commerce Works — A Quick Journey
1. Product Listing: A seller uploads product details, images, and prices on an online
platform.
2. Customer Browsing: Buyers search, compare, and select products.
3. Order Placement: The buyer adds items to a virtual cart and confirms the purchase.
4. Payment: The buyer pays electronically.
5. Processing & Delivery: The seller processes the order and ships it, or provides digital
access.
6. After-Sales Service: Returns, refunds, or customer support if needed.
Key Features of E-Commerce
Let’s break down the features that make E-Commerce unique and powerful.
1. Digital Platform
• All transactions happen online through websites, apps, or even social media pages.
• No physical store is required — though some businesses operate both online and
offline.
Example: Amazon, Flipkart, Myntra.
2. Global Reach
• A seller in Amritsar can sell to a buyer in Australia without opening a store there.
• The internet removes geographical barriers.
3. 24×7 Availability
• Online stores never “close”.
• Customers can shop at midnight or early morning — whenever it suits them.
4. Variety and Choice
• E-Commerce platforms offer thousands of products across categories.
• Customers can compare brands, prices, and reviews instantly.
5. Electronic Payments
• Payments are made through credit/debit cards, UPI, wallets, or net banking.
• Cash on Delivery (COD) is also an option in many regions.
6. Personalisation
• Platforms track browsing and purchase history to recommend products.
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• Creates a customised shopping experience.
7. Lower Operational Costs
• No need for expensive retail space.
• Automation reduces staffing needs.
8. Inventory Management
• Many platforms integrate inventory tracking so stock levels are updated in real time.
9. Security Mechanisms
• Encryption and secure payment gateways protect customer data.
• Authentication ensures transactions are genuine.
10. Feedback and Reviews
• Customers can rate and review products.
• Helps other buyers make informed decisions and sellers improve quality.
Types of E-Commerce Models
Understanding the types helps see how flexible E-Commerce can be.
1. B2C (Business to Consumer): Businesses sell directly to individual customers.
Example: Buying clothes from an online retailer.
2. B2B (Business to Business): One business sells to another. Example: A wholesaler
selling raw materials to a manufacturer.
3. C2C (Consumer to Consumer): Individuals sell to other individuals. Example: Selling
used furniture on OLX.
4. C2B (Consumer to Business): Individuals offer products or services to businesses.
Example: A photographer selling stock images to a company.
Advantages of E-Commerce
1. Convenience
• Shop from anywhere, anytime.
• No travel, no queues.
2. Wider Market
• Sellers can reach customers beyond their local area.
• Buyers can access products not available locally.
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3. Cost Savings
• Lower overheads for sellers often mean better prices for buyers.
4. Information Availability
• Detailed product descriptions, images, videos, and reviews help decision-making.
5. Speed
• Orders can be placed in minutes.
• Digital products are delivered instantly.
Limitations of E-Commerce
1. No Physical Inspection
• Buyers can’t touch or try products before purchase.
2. Dependence on Internet
• Requires a stable connection for smooth transactions.
3. Security Concerns
• Risk of fraud if platforms are not secure.
4. Delivery Time
• Physical goods take time to ship.
A Story to Bring It Alive
Imagine Ravi, who runs a small handicrafts shop in Punjab. Earlier, his customers were
mostly locals or tourists. Then he set up an online store on an E-Commerce platform. Now:
• His products are seen by customers in Delhi, Mumbai, and even London.
• Orders come in at night while he’s asleep.
• Payments are credited directly to his bank.
• Reviews from happy customers attract more buyers.
E-Commerce transformed Ravi’s small shop into a global business — without him ever
leaving his hometown.
Why E-Commerce is Important Today
• Changing Consumer Habits: People prefer the convenience of online shopping.
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• Technology Growth: Smartphones and cheap internet have made E-Commerce
accessible to millions.
• Pandemic Effect: COVID-19 accelerated the shift to online buying.
• Competitive Edge: Businesses that adapt to E-Commerce can survive and grow
faster.
Conclusion
E-Commerce is more than just “shopping online” — it’s a complete digital ecosystem where
buying, selling, marketing, payments, and customer service happen seamlessly over the
internet. Its features — from global reach and 24×7 availability to personalisation and
secure payments — make it a powerful tool for both businesses and consumers.
In today’s world, understanding E-Commerce isn’t optional — it’s essential. Whether you’re
a buyer enjoying the comfort of home delivery or a seller reaching customers across
continents, E-Commerce is the bridge that connects needs with solutions, instantly and
efficiently.
2. Briefly discuss challenges and limitations of E-Commerce.
Ans: 🌍 A New Beginning
Imagine a small town where a new shopping mall has just opened. Everyone is excited
because this mall promises that people can order goods from their homes, make payments
online, and have everything delivered right to their doorsteps. For the townsfolk, it feels
magical—no more rushing to crowded shops or carrying heavy bags.
This "mall" in our story is nothing but E-Commerce. It opened the doors of global markets,
giving people the power to buy and sell anything with just a few clicks. But just like every
magical invention, it has its challenges and limitations. Think of it as the cracks in the shiny
new building—small or big, they still matter.
Let’s walk into this mall and explore these challenges one by one, like a friendly guide
explaining things to a group of students.
Trust and Security: The First Big Barrier
In our story, a lady named Ritu wanted to buy a beautiful saree online. She filled her cart
and went to make payment. But then, a doubt crossed her mind: “What if my card details
are stolen? What if the seller cheats me?”
This hesitation is the trust and security challenge of E-Commerce.
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• People fear sharing personal and banking details online.
• Cyber frauds, hacking, phishing, and fake websites add to the insecurity.
• Lack of trust in unknown sellers often stops customers from clicking that “Buy Now”
button.
Just like a mall needs security guards, E-Commerce needs strong cybersecurity, trust-
building, and safe payment gateways to overcome this challenge.
Digital Divide: Not Everyone Can Enter the Mall
Now imagine: the mall is shining and full of shops, but half of the town cannot enter
because they don’t have a pass card. Similarly, in the real world, E-Commerce is not
accessible to everyone.
• Many rural areas still lack high-speed internet.
• Older generations or less tech-savvy people find online shopping confusing.
• Expensive smartphones, data charges, or poor digital literacy limit access.
This is called the digital divide—the gap between those who can easily use E-Commerce and
those who cannot.
Product Quality and Delivery Issues: The Broken Promise
One day, a boy named Arjun ordered a pair of trendy shoes online. The picture showed
stylish sneakers, but when the parcel arrived, it was an old, cheap knockoff. His excitement
turned into disappointment.
This shows another limitation:
• Mismatch between expectations and reality (product shown vs. product delivered).
• Delayed deliveries, especially in remote areas.
• Damaged goods or incorrect items being shipped.
In physical shops, people touch and feel products before buying, but in E-Commerce, it’s
often a gamble.
High Competition and Thin Profit Margins
Inside the mall, every shopkeeper is shouting louder than the other: “Big Discount! Lowest
Price! Free Delivery!”
This represents fierce competition in E-Commerce.
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• Sellers have to keep cutting prices to attract buyers.
• Profit margins become thinner.
• Small businesses often cannot compete with giants like Amazon or Flipkart.
So while the mall seems full of opportunities, survival isn’t easy for small vendors.
Logistics and Infrastructure Problems
Think of a customer who ordered a refrigerator online. The seller promised 3-day delivery,
but the fridge arrives after 2 weeks because the delivery truck broke down, and the courier
network was weak in that area.
This highlights the logistical challenges of E-Commerce:
• Weak transport and delivery systems in rural or distant regions.
• High costs of packaging, warehousing, and shipping.
• Returns and replacements making the process even more complicated.
Without a strong infrastructure, E-Commerce struggles to reach every corner efficiently.
Legal and Tax Issues: The Confusing Rules
Imagine some shopkeepers in the mall arguing: “Which tax should I pay? State tax or
national tax? Which country’s law applies if I sell to a foreign buyer?”
That’s exactly the problem in E-Commerce law and taxation:
• Different countries have different cyber laws, making cross-border trade confusing.
• Taxation rules are complex for online transactions.
• Consumer protection laws are sometimes unclear or weak in online scenarios.
This legal maze makes it harder for sellers and customers to operate smoothly.
Dependence on Technology
Our magical mall runs on electricity and internet. But what happens if there’s a power cut or
the internet server crashes? Suddenly, the mall goes dark.
This shows the dependence of E-Commerce on technology:
• Any technical failure can stop transactions.
• Website downtime leads to loss of customers.
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• Frequent software updates and maintenance are costly but necessary.
Without reliable technology, the whole system collapses.
Cultural and Personal Preferences
Let’s say an elderly man in the town doesn’t trust online shopping at all. He believes in the
old way—touching vegetables before buying or bargaining with the shopkeeper.
This highlights cultural and personal barriers:
• Some people simply prefer face-to-face interaction.
• In certain cultures, physical shopping is seen as a family activity.
• Lack of personal touch in E-Commerce makes it less appealing for many.
So, even with technology, human emotions and traditions play a big role.
Environmental Concerns
The mall looks grand, but outside it, there’s a growing pile of packaging waste—boxes,
bubble wrap, plastic covers. Delivery trucks add more pollution.
This reflects the environmental challenge:
• Huge use of packaging materials leads to waste.
• Increased transport adds to carbon emissions.
• Short product lifecycles create e-waste.
Thus, while E-Commerce grows, it silently puts pressure on the environment.
1 Return and Refund Complexities
Finally, let’s talk about a lady who ordered a dress but didn’t like the fitting. She wanted to
return it, but the process was so lengthy—calling customer care, filling forms, waiting for a
pick-up—that she gave up.
This shows the difficulty of returns and refunds:
• Complicated return policies discourage buyers.
• Sellers bear extra costs in handling returns.
• Disputes between buyers and sellers reduce trust.
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🌟 Wrapping Up the Story
So, our magical mall of E-Commerce is truly powerful—it has changed the way people buy
and sell forever. But as we explored its shiny corridors, we also noticed the cracks: trust
issues, digital divide, logistics, competition, legal hurdles, and cultural barriers.
In simple words, E-Commerce is like a young superhero—full of potential but still learning
to deal with weaknesses. The future lies in solving these challenges through better
technology, stronger laws, eco-friendly practices, and most importantly, by building trust
with people.
SECTION-B
3. Discuss various influencing factors of Successful E-Commerce.
Ans: 1. A Clear and Strong Business Strategy
Think of this as the blueprint for your digital shop. Without a clear plan — who you’re
selling to, what you’re selling, and how you’ll stand out — you’re like a shopkeeper who
doesn’t know what’s on his shelves.
Why it matters:
• Defines your target audience.
• Helps you choose the right product mix.
• Guides marketing and pricing decisions.
Example: Amazon started with books, but its strategy was always to become “the
everything store.” That vision guided every expansion.
2. User-Friendly Website or App Design
Your website is your storefront. If it’s messy, slow, or confusing, customers will walk away —
just like they would from a cluttered shop.
Key elements:
• Simple navigation.
• Fast loading speed.
• Mobile-friendly design.
• Clear product categories and search function.
Tip: A customer should be able to find and buy a product in three clicks or less.
3. Trust and Security
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In the digital city, trust is your currency. Customers can’t see you face-to-face, so they need
assurance that:
• Their payment details are safe.
• The product will arrive as promised.
• Returns and refunds are hassle-free.
How to build it:
• Use secure payment gateways (SSL encryption).
• Display trust badges and customer reviews.
• Have clear return and privacy policies.
Example: Flipkart’s “No Questions Asked” return policy helped it win early trust in India.
4. Reliable Logistics and Delivery
Imagine ordering a gift for a friend’s birthday and it arrives a week late — the magic is gone.
Fast, reliable delivery is a make-or-break factor.
What works:
• Partnering with dependable courier services.
• Offering multiple delivery options (same-day, next-day, standard).
• Real-time tracking for customers.
Note: In India, E-Commerce growth in Tier-2 and Tier-3 cities has been fuelled by improved
logistics networks.
5. Competitive Pricing and Value
Online shoppers compare prices in seconds. If your prices are too high without offering
extra value, customers will click away.
Ways to stay competitive:
• Dynamic pricing tools.
• Bundled offers and discounts.
• Loyalty programs.
Example: Myntra often uses “End of Reason” sales to attract huge traffic and clear
inventory.
6. Product Quality and Variety
In the digital city, your products are your reputation. One bad experience can lead to
negative reviews that spread fast.
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Checklist:
• Source from reliable suppliers.
• Maintain consistent quality.
• Offer variety to cater to different tastes and budgets.
7. Effective Digital Marketing
Even the best shop will stay empty if no one knows it exists. Digital marketing is like putting
up bright signboards all over the city.
Channels to use:
• Search Engine Optimisation (SEO) for organic traffic.
• Social media ads and influencer marketing.
• Email campaigns for repeat customers.
Example: Nykaa built its brand through beauty tutorials and influencer tie-ups, not just ads.
8. Customer Service Excellence
In E-Commerce, customer service is your smiling shop assistant. Quick, helpful responses
turn one-time buyers into loyal fans.
Best practices:
• Multiple support channels (chat, email, phone).
• Quick resolution of complaints.
• Personalised follow-ups.
9. Technology and Innovation
The digital city changes fast — yesterday’s trend is today’s history. Successful E-Commerce
players keep innovating.
Examples:
• AI-driven product recommendations.
• Augmented reality (AR) try-ons for fashion or furniture.
• Voice search integration.
10. Adaptability to Market Trends
Consumer behaviour shifts quickly — think of the surge in online grocery orders during the
pandemic. Being able to pivot is crucial.
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How to adapt:
• Monitor analytics and customer feedback.
• Experiment with new categories or services.
• Stay updated on industry trends.
11. Legal Compliance
Every city has rules. In E-Commerce, these include:
• Tax regulations (like GST in India).
• Consumer protection laws.
• Data privacy rules.
Why it matters: Non-compliance can lead to fines, bans, or loss of customer trust.
12. Payment Flexibility
Different customers prefer different payment methods. Offering multiple options removes
friction at checkout.
Popular in India:
• UPI (Google Pay, PhonePe, Paytm)
• Credit/Debit cards
• Net banking
• Cash on Delivery (still important in smaller towns)
13. Building a Brand Identity
In a crowded market, your brand is your personality. It’s what makes customers remember
you and come back.
Elements:
• Consistent logo, colours, and tone of voice.
• Storytelling that connects emotionally.
• Social responsibility initiatives.
14. Data-Driven Decision Making
In the digital city, data is like the weather report — it tells you what’s coming. Analysing
customer behaviour, sales trends, and marketing performance helps you make smart
moves.
Tools:
• Google Analytics.
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• CRM systems.
• E-Commerce dashboards.
A Story to Tie It Together
Picture Meera, who sells handmade jewellery. She starts an online store but struggles at
first — few visitors, slow sales. Then she:
• Redesigns her website for mobile users.
• Adds secure payment options.
• Partners with a reliable courier for faster delivery.
• Launches Instagram ads targeting young professionals.
• Introduces a loyalty program for repeat buyers.
Within months, her orders triple. Why? Because she worked on the key influencing factors
— trust, convenience, marketing, and customer experience.
Conclusion
Successful E-Commerce isn’t about luck — it’s about getting the fundamentals right. From a
clear business strategy and user-friendly design to trust, logistics, pricing, and marketing,
each factor is like a brick in the foundation of your digital shop. Neglect one, and the
structure weakens; strengthen them all, and your E-Commerce venture can stand tall in the
bustling digital city.
4. Explain Business to Business and Business to Customers business models.
Ans: Business to Business (B2B) and Business to Customer (B2C) Models – Explained Like a
Story
Imagine for a moment that you’re standing in a big, colourful marketplace. On one side,
there are shopkeepers shouting, “Fresh fruits! Buy one, get one free!” and customers—
families, students, professionals—walking around with bags, comparing prices, and choosing
what they want. That’s one world of business.
But if you look closely, behind those stalls, there’s another world. It’s quieter, less flashy,
but equally important. Trucks deliver goods, wholesalers negotiate with shopkeepers, and
manufacturers supply raw materials to those very shops. Without this “background world,”
the lively customer market you see in front wouldn’t even exist.
These two worlds represent Business-to-Customer (B2C) and Business-to-Business (B2B).
To really understand them, let’s walk through both sides step by step.
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1. The Everyday World of B2C (Business to Customer)
Think of the last time you bought something—maybe a pizza from Domino’s, shoes from
Nike, or even a subscription to Netflix. In each case, you were the final consumer. That is
exactly what B2C means: businesses selling directly to the people who will use the product
or service.
Features of B2C
• Direct Connection: The business talks to you, the end customer, through
advertisements, websites, or shops.
• Emotional Selling: Companies often appeal to your feelings. Notice how ads say,
“Because you’re worth it,” or show happy families enjoying their product. They want
you to connect emotionally.
• Smaller Quantities: When you buy toothpaste, you buy one tube, not a truckload. So
B2C sales usually happen in small quantities.
• Marketing is Crucial: In B2C, companies invest heavily in marketing—posters, TV ads,
online ads—because they need to attract large numbers of individual buyers.
Examples of B2C
• Amazon selling a phone directly to you.
• McDonald’s serving you a burger.
• Netflix streaming movies to your device.
So B2C is like a colourful shop directly calling out, “Hey customer, come buy from me!”
2. The Backbone World of B2B (Business to Business)
Now step behind the marketplace. That Domino’s pizza you bought? It exists because
Domino’s bought flour, cheese, and tomato puree from other businesses. Nike’s shoes?
They’re made from materials supplied by textile manufacturers and rubber companies.
Netflix? It has partnerships with content producers, studios, and data storage companies.
That is B2B—where businesses sell products or services to other businesses, not directly to
you.
Features of B2B
• Professional Relationships: Deals are often based on contracts and long-term trust.
It’s not about one pizza—it’s about supplying hundreds of kilos of flour every week.
• Logical Decisions: Unlike B2C, where emotions play a big role, B2B focuses on cost,
quality, and reliability. A company won’t buy flour because the ad looks nice—it will
check quality standards and prices.
• Large Quantities: Businesses usually buy in bulk. A shop may buy thousands of pens
from a wholesaler, not just one or two.
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• Fewer Customers, Bigger Deals: A B2B company may have only 20 clients, but each
client might place orders worth millions.
Examples of B2B
• Intel selling microchips to Dell and HP.
• TCS providing IT solutions to banks.
• A steel manufacturer supplying steel to an automobile company like Tata Motors.
So B2B is like the strong foundation of a building—hidden but essential. Without it, the
colourful B2C marketplace would collapse.
3. The Key Differences Between B2B and B2C
To make things clearer, let’s compare them side by side like two friends with very different
personalities:
Aspect
B2B (Business to Business)
B2C (Business to Customer)
Target Audience
Other businesses
Individual customers
Decision Making
Logical, based on price, quality,
reliability
Emotional, based on brand, desire,
convenience
Order Size
Large and bulk orders
Small and single-unit purchases
Marketing
Approach
Relationship-based, personal
sales, contracts
Mass advertising, digital marketing,
discounts
Examples
IBM selling servers to companies
Flipkart selling a mobile to you
So, one model is behind the curtain, supplying and enabling, while the other is on the stage,
dazzling customers with offers.
4. How B2B and B2C Are Connected
The truth is, they’re like two gears in a machine—one can’t work without the other. If B2B
suppliers stop, B2C companies won’t have products to sell. And if customers stop buying,
B2B companies won’t get orders.
For example:
• Coca-Cola: B2B when it sells its syrup concentrate to restaurants and retailers. B2C
when it sells a bottle directly to you in a shop.
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• Amazon: B2C when you order headphones. B2B when sellers use Amazon Web
Services (AWS) for cloud computing.
This shows that many big companies operate in both models simultaneously.
5. Advantages and Challenges
B2B Advantages
• Stable and long-term contracts.
• Bigger order sizes mean higher revenue per client.
• Professional trust reduces random cancellations.
B2B Challenges
• Harder to get new clients.
• Requires high expertise and strong relationship building.
• Slower decision-making—deals can take weeks or months.
B2C Advantages
• Huge customer base.
• Easier to launch new products through ads.
• Quick decisions—customers may buy instantly if they like something.
B2C Challenges
• High competition.
• Customers are unpredictable; trends change fast.
• Requires heavy spending on advertising and marketing.
6. Why This Matters for Students and Future Entrepreneurs
Understanding these models is not just theory. If tomorrow you start a business, you’ll have
to decide:
• Do I sell to customers directly (B2C)?
• Or do I sell to other businesses (B2B)?
• Or maybe a mix of both?
For example, if you open a bakery, selling cakes to walk-in customers is B2C. Supplying cakes
to cafés or hotels is B2B. Smart entrepreneurs often combine both to maximize reach.
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7. Final Story-Like Wrap Up
So, in our marketplace story, B2C is the colourful shop calling out to customers, while B2B
is the wholesaler in the background ensuring the shop has something to sell. One is visible
and glamorous, the other is hidden but powerful. Both are equally important, and together
they make the business world spin.
In short:
• B2C is about connecting hearts and wallets of individuals.
• B2B is about building trust and partnerships with organizations.
And that’s how the world of business dances—sometimes on stage with lights and colors,
sometimes behind the curtains with contracts and handshakes. Without one, the other
simply cannot survive.
SECTION-C
5. Explain website and its components in detail.
Ans: 🌍 The Beginning of Our Story:
Imagine you are walking through a giant city. This city is full of shops, libraries, parks, offices,
and even entertainment centers. Now, here’s the twist—this city doesn’t exist in the
physical world. It exists on the Internet. And each shop, library, or park you visit in this city is
nothing but a website.
Yes, a website is like a “place” on the internet where you go to find information, shop,
study, watch videos, or even just pass time. Just like buildings in a city are made up of bricks,
cement, doors, and windows, a website is also built with its own set of components.
So let’s enter this “building” called Website and explore each room, step by step.
🏠 What is a Website?
A website is a collection of related web pages that are connected under a single domain
name and accessible through the Internet.
• Think of it as a digital home.
• Each room in the home represents a web page.
• The main door you use to enter the home is the homepage.
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• And the house’s address (so that people can find it) is the domain name.
So when you type something like www.amazon.com or www.wikipedia.org, you are
basically telling your browser: “Hey, take me to this house on the internet.”
But how is this digital home built? Let’s break it into components.
Components of a Website (Explained Like a Story)
1. Domain Name – The Address of the House
Imagine you’re visiting your friend’s house. You need an address, right? Without the
address, you’d be lost. Similarly, a website has an address, which we call a domain name.
Examples:
• www.google.com
• www.flipkart.com
• www.easy2siksha.com
This domain name is easy for humans to remember, unlike the actual technical IP address
(like 172.217.3.110). So, just like your home address, a domain tells people where your
website lives on the Internet.
2. Web Hosting – The Land Where the House is Built
Even if you have a house design, you need land to actually construct it. Similarly, a website
needs web hosting—a place on the internet where all the files (images, videos, texts,
designs) are stored.
• Hosting is like a plot of land.
• Without land, your house design remains just a drawing.
• Hosting servers keep your website available 24/7 so anyone can visit it.
So, domain = address, hosting = land.
3. Web Pages – The Rooms Inside the House
Now that the house is built, let’s walk inside. Every room has a different purpose: one might
be a bedroom, another a kitchen, another a study.
Similarly, every website is divided into web pages.
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• The first room you enter is called the Homepage.
• Other rooms might include the About Page, Contact Page, Services Page, etc.
Each page is designed to provide some specific information.
4. Homepage – The Main Door
The homepage is like the front gate or reception of your house. When visitors come in, this
is the first thing they see.
• It introduces the visitor to your site.
• It gives direction: “Where to go next?”
• Just like a well-decorated living room makes guests comfortable, a homepage should
be welcoming and easy to navigate.
5. Content – The Furniture and Decoration
Now, what’s inside the rooms? Furniture, decorations, books, and photos, right? That’s
what makes the house livable.
Similarly, the content of a website—text, images, videos, and audio—is what makes the
website useful.
• On a news website, content = articles.
• On YouTube, content = videos.
• On Amazon, content = product listings.
Without content, a website is just an empty building.
6. Navigation – The Map of the House
Imagine being stuck in a giant house with hundreds of rooms but no map or direction signs.
You’d be confused!
That’s why websites use menus, buttons, and links—these are like signboards and maps in
the house that guide you to the right room.
• Top navigation bar = main signboard.
• Footer links = small signs at the bottom.
Good navigation makes a website easy to use.`
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7. Design and Layout – The Architecture of the House
Would you like to live in a poorly built, ugly house? No, right? Similarly, visitors love
websites that are visually attractive, clean, and well-structured.
• Fonts, colors, and themes = paint and decoration.
• Layout = floor plan of the house.
• Responsiveness (working on mobiles, tablets, PCs) = making sure your house is
comfortable for everyone.
So, design is what makes the house feel like “home.”
8. Backend – The Kitchen and Store Room
Every house has areas guests don’t usually see, like the kitchen or storeroom, where most of
the hard work happens.
Similarly, a website has a backend.
• Backend = server + database + logic.
• It stores data, processes requests, and sends information to the visitor’s browser.
For example:
• When you log into Facebook, the backend checks your username and password.
• When you order on Amazon, the backend processes your order and updates the
stock.
So, while the frontend is what you see, the backend is where the real “cooking” happens.
9. Frontend – The Living Room for Guests
The frontend is the part of the website users see and interact with. It’s built using HTML,
CSS, and JavaScript.
• HTML = walls and structure.
• CSS = paint and decoration.
• JavaScript = lights and moving parts.
This is the space where visitors sit, talk, and experience the house.
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10. Security – The Locks and Keys
No house is safe without doors, locks, and security cameras. Similarly, a website needs
security features to protect against hackers and data theft.
• SSL Certificate (https://) = lock on the main door.
• Passwords and firewalls = security guards.
Security ensures visitors feel safe sharing their information.
11. Search Function – The Housemaid Who Finds Things
Imagine living in a mansion with 100 rooms but you can’t find your shoes. You’d call the
housemaid to fetch them, right?
On a website, the search bar works like that housemaid. It quickly finds the exact
information, product, or article you need.
12. Footer – The Basement of the House
At the bottom of every website, you’ll usually find extra details like copyright, contact info,
quick links, and sometimes even maps. This is the footer, like the basement of your house
where you store useful stuff.
🎯 Why Are These Components Important?
A website without these components would be like a house without structure, address, or
rooms.
• Without a domain, nobody can find you.
• Without content, nobody will stay.
• Without design, nobody will enjoy.
• Without backend, nothing will function.
Each component is essential to make the website a complete and useful “digital home.”
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📖 Conclusion – Wrapping the Story
So, a website is not just some boring digital thing. It’s a beautifully crafted home on the
internet where visitors come, stay, explore, and sometimes even live (think of people
spending hours on Instagram or YouTube!).
• Domain is the address.
• Hosting is the land.
• Pages are the rooms.
• Content is the furniture.
• Design is the architecture.
• Frontend and Backend are the guest area and the kitchen.
• Security is the lock and guard.
When all these components come together, they create a website that is useful, attractive,
and functional.
Just like a good house gives comfort to its guests, a good website gives satisfaction to its
visitors.
6. Explain emergence of Internet as Competitive Advertising Media.
Ans: The Emergence of the Internet as a Competitive Advertising Media
The rise of the Internet as an advertising powerhouse didn’t happen overnight. It was driven
by a combination of technology, consumer behaviour, and business needs.
1. The Digital Revolution
• The spread of affordable computers in the 1990s and early 2000s made the Internet
accessible to millions.
• The arrival of smartphones and cheap mobile data (especially in countries like India)
brought the Internet into everyone’s hands.
• This created a massive audience that advertisers could reach instantly — without the
limitations of geography.
2. Shift in Consumer Behaviour
• People began spending more time online — reading news, shopping, socialising, and
watching videos.
• Traditional media like TV and newspapers started losing monopoly over attention.
• Advertisers realised: If the audience is online, the ads should be too.
3. Technological Advancements in Advertising
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• Early online ads were simple banners.
• Then came search engine ads (Google AdWords), social media ads (Facebook,
Instagram), and video ads (YouTube).
• Today, we have AI-driven targeting, interactive ads, and personalised
recommendations.
Why the Internet Became a Competitive Advertising Medium
Let’s break down the features that made the Internet not just an alternative, but a rival to
traditional advertising.
1. Global Reach
A small business in Amritsar can advertise to customers in New York, London, or Sydney —
without opening a physical store there. Traditional media rarely offers such borderless
reach.
2. Precision Targeting
Unlike a TV ad that reaches everyone watching a channel, Internet ads can be shown only
to:
• People in a specific city.
• People of a certain age group.
• People interested in specific products.
This laser-sharp targeting means less waste and more impact.
3. Cost-Effectiveness
• You can run an online ad campaign with a budget of ₹500 or ₹50 lakh — the choice is
yours.
• Pay-per-click (PPC) and pay-per-impression models mean you pay only when
someone sees or interacts with your ad.
4. Measurability
In traditional media, it’s hard to know exactly how many people saw your ad. On the
Internet, you can track:
• How many people saw the ad (impressions).
• How many clicked it (CTR).
• How many bought something after clicking (conversion rate).
5. Interactivity
Internet ads can invite the audience to:
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• Click for more details.
• Watch a video.
• Play a mini-game.
• Fill a form.
This two-way engagement builds stronger connections than passive viewing.
6. Speed and Flexibility
• You can launch a campaign in hours, not weeks.
• If something isn’t working, you can change the ad instantly — no waiting for the next
newspaper edition or TV slot.
7. Integration with E-Commerce
Online ads can take customers directly to a product page where they can buy instantly. This
“click-to-buy” journey is far shorter than traditional methods.
Milestones in the Internet’s Advertising Journey
Phase 1: The Banner Era (Mid-1990s)
• First clickable banner ad appeared in 1994.
• Static images with links to websites.
Phase 2: Search Engine Marketing (Early 2000s)
• Google AdWords revolutionised targeted advertising.
• Businesses could bid for keywords relevant to their products.
Phase 3: Social Media Boom (Late 2000s)
• Facebook, Twitter, Instagram allowed advertisers to target based on interests,
behaviour, and demographics.
• Viral marketing became possible.
Phase 4: Mobile and Video Dominance (2010s)
• YouTube ads, Instagram stories, TikTok videos.
• Mobile-first campaigns as smartphones became primary devices.
Phase 5: AI and Personalisation (2020s)
• Ads tailored to individual browsing history and preferences.
• Programmatic advertising automates buying and placement.
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Opportunities the Internet Offers to Advertisers
1. Small Businesses Can Compete with Giants A local bakery can run Facebook ads
targeting nearby residents — competing with big chains.
2. Real-Time Feedback Advertisers can see instantly which ads are working and adjust.
3. Creative Freedom From memes to interactive quizzes, the Internet allows endless
creativity.
4. Multiple Formats Text, images, videos, carousels, stories, live streams — all are
possible.
Challenges in Internet Advertising
Of course, the Internet’s competitive nature also brings challenges:
• Ad Clutter: Users see hundreds of ads daily — standing out is hard.
• Ad Blocking: Many people use software to hide ads.
• Privacy Concerns: Over-targeting can feel intrusive.
• High Competition: Every brand is online, fighting for attention.
A Story to Bring It Alive
Think of Meera, who runs a small organic skincare brand. In 2005, her only advertising
options were:
• A local newspaper ad.
• Flyers in nearby shops.
Her reach was limited, and costs were high.
In 2025, Meera runs Instagram and Google ads:
• Targets women aged 20-40 in metro cities.
• Shows them short videos of her products.
• Links directly to her online store.
She spends ₹5,000 a month and reaches thousands of potential customers — something
impossible with her old methods. The Internet didn’t just give her a new advertising channel
— it gave her a competitive edge.
Conclusion
The Internet’s emergence as a competitive advertising medium is one of the biggest shifts in
marketing history. Its global reach, precise targeting, cost-effectiveness, measurability,
interactivity, and speed have made it a rival — and often a replacement — for traditional
media.
In today’s world, whether you’re a multinational corporation or a one-person startup, the
Internet levels the playing field. It’s not just where the audience is — it’s where the
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competition is fiercest, the opportunities are richest, and the rewards are greatest for those
who know how to use it well.
SECTION-D
7. Explain security issues and its solutions on Electronic Payment System.
Ans : A Walk into the Digital Market
Imagine one morning you wake up, open your phone, and instead of carrying a wallet filled
with cash and coins, you simply click on an app, enter a few digits, and voilà – your shopping
is done. No physical money, no long queues. This magical convenience is what we call an
Electronic Payment System (EPS).
But wait. Just like every fairy tale has villains, this digital wonderland has its own set of
security issues that can spoil the fun. The good news? For every villain, there’s a hero. So,
let’s take a journey through the “digital market” and meet the problems one by one, along
with their solutions.
The First Villain: Hackers and Data Theft
Picture this: you’re entering your card number, CVV, and PIN on a website. Suddenly,
somewhere far away, a hacker is silently watching, trying to steal your data. This is one of
the biggest threats in electronic payment systems – data theft.
• What happens here?
Hackers may use malicious software, phishing websites, or even fake apps to steal
sensitive information like credit card details, passwords, or bank account numbers.
• Solution (The Hero): Encryption & Secure Channels
The digital knight who saves us here is encryption. Modern EPS platforms use
technologies like SSL (Secure Socket Layer) or TLS (Transport Layer Security) to
scramble your information during transmission. It’s like sending your message in a
locked box that only the bank can open. Two-factor authentication (OTP on mobile +
password) is another shield that ensures hackers cannot easily misuse stolen details.
The Second Villain: Phishing Attacks
Imagine getting an email that looks exactly like it’s from your bank, asking you to “verify
your account.” Innocently, you click the link and enter your details, only to realize later that
the email was fake. That’s phishing.
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• What happens here?
Fraudsters create fake websites or emails that look real. People unknowingly share
their sensitive data.
• Solution (The Hero): Awareness & Verification Tools
The best weapon here is awareness. Always check the URL of the website – does it
start with https:// and show a small lock icon? That means it’s secure. Banks also use
anti-phishing filters and warn customers never to share OTPs or PINs.
The Third Villain: Unauthorized Transactions
Imagine you are enjoying your tea, and suddenly, you get an SMS: “₹10,000 has been
debited from your account.” Shock! You didn’t authorize this transaction. This is another
common issue.
• What happens here?
Hackers sometimes break into systems or steal login credentials, leading to money
being withdrawn without permission.
• Solution (The Hero): Fraud Detection Systems
Banks and EPS providers now use AI-based fraud detection systems. These systems
track unusual spending patterns – for example, if you usually shop in India but
suddenly a purchase is made from New York, the system can automatically block the
transaction. Also, transaction alerts (SMS or email) help you take immediate action.
The Fourth Villain: Identity Theft
Let’s say a fraudster somehow gets your Aadhaar number, PAN, and phone details. With
this, they can impersonate you, open fake accounts, or misuse your identity in EPS.
• What happens here?
Your entire digital financial identity gets cloned. It’s like someone wearing a mask
with your face and stealing in your name.
• Solution (The Hero): Strong Authentication & KYC
To defeat this, EPS systems rely on multi-factor authentication and Know Your
Customer (KYC) verification. Using biometrics like fingerprints, facial recognition, or
OTPs makes it much harder for an impersonator to succeed.
The Fifth Villain: Malware and Viruses
Sometimes, the enemy doesn’t need to trick you at all. If your phone or computer is
infected with malware, it can record every keystroke (like your password), or secretly
redirect payments to a fraudster’s account.
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• Solution (The Hero): Firewalls, Antivirus & Updates
Just like you lock your home’s door, you must lock your devices. Using firewalls,
keeping systems updated, and installing trusted antivirus software are essential.
Payment apps also use “sandboxing,” which keeps financial data safe even if other
apps are infected.
The Sixth Villain: Denial of Service (DoS) Attacks
Imagine you’re about to pay your electricity bill online, but the payment site crashes.
Sometimes, this happens because cybercriminals flood the system with fake requests,
making it unavailable for genuine users.
• Solution (The Hero): Network Security & Load Balancers
Banks and EPS providers use advanced firewalls, load balancers, and backup servers
to ensure that even under attack, services remain available.
The Seventh Villain: Human Error
Yes, sometimes the problem is not technology but us. Entering wrong details, using weak
passwords like “123456,” or forgetting to log out after making a payment – these are small
mistakes but can lead to big troubles.
• Solution (The Hero): User Education & Simplicity
EPS platforms now guide users with step-by-step instructions, password strength
indicators, and auto-logouts. But the real hero here is awareness – knowing how to
handle digital money safely.
The Balancing Act: Convenience vs. Security
Here’s the catch: while we want security, we also want convenience. If a payment system is
too strict, users find it irritating. For example, imagine entering three passwords, a
fingerprint, and an OTP just to buy a cup of tea online – that would be overkill!
So, the best solution is balancing security and ease of use. Modern systems like UPI
(Unified Payments Interface) in India are great examples – they’re fast, simple, but also rely
on strong PINs and mobile verification.
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The Bigger Picture: Building Trust
Electronic payment systems are not just about technology – they are about trust. Unless
people feel safe, they won’t use digital payments. That’s why governments, banks, and
fintech companies continuously work on cyber laws, awareness campaigns, and
technological upgrades.
Conclusion: The Story’s Moral
So, what have we learned from our journey? The world of Electronic Payment Systems is
like a bustling digital marketplace – full of opportunities but also risks. The villains include
hackers, phishing, identity theft, malware, and human mistakes, while the heroes are
encryption, authentication, firewalls, fraud detection, and user awareness.
The moral of the story is clear: Security is not a one-time lock but a continuous shield. Both
users and providers must play their role – technology provides the weapons, but awareness
is the real power that keeps digital payments safe.
In the end, if we learn to use these systems wisely, we can enjoy the convenience of a
cashless world without fear.
8. Explain Legal and ethical issues in E-Commerce.
Ans: 1. Legal Issues in E-Commerce
Legal issues are the “hard rules” — break them, and you could face penalties, lawsuits, or
even criminal charges. In India, these rules come from laws like the Information Technology
Act, 2000, the Consumer Protection Act, 2019, and various tax, intellectual property, and
contract laws.
Let’s walk through the main ones.
a) Electronic Contracts and Digital Signatures
• In E-Commerce, agreements are often made online — clicking “I Agree” or placing an
order is a form of contract.
• The IT Act, 2000 recognises electronic contracts and digital signatures as legally
valid.
• Risk: If terms are unclear or hidden in fine print, disputes can arise.
Example: A customer buys a subscription online but later finds hidden charges. If the terms
weren’t clearly displayed, the seller could face legal action.
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b) Consumer Protection
• The Consumer Protection Act, 2019 includes special provisions for E-Commerce:
o Sellers must display accurate product descriptions.
o No false or misleading advertisements.
o Easy grievance redressal.
• Risk: Selling counterfeit goods or making false claims can lead to penalties.
c) Data Privacy and Security
• E-Commerce platforms collect personal data — names, addresses, payment details.
• Laws require businesses to protect this data from misuse or breaches.
• Risk: Data leaks can lead to identity theft, fraud, and loss of customer trust.
Example: If a shopping site’s database is hacked and customer card details are stolen, the
company can be held liable.
d) Intellectual Property Rights (IPR)
• Using someone else’s brand name, logo, or product design without permission is
illegal.
• Copyright protects original content like product photos and descriptions.
• Risk: Copying a competitor’s product images or selling fake branded goods can lead
to lawsuits.
e) Taxation and Compliance
• E-Commerce transactions are subject to GST in India.
• Sellers must register, collect, and remit taxes correctly.
• Risk: Non-compliance can result in fines and legal action.
f) Payment Systems and Fraud
• Online payments must comply with RBI guidelines and use secure gateways.
• Risk: Phishing scams, fake payment confirmations, or chargeback fraud can harm
both customers and sellers.
g) Jurisdiction and Cross-Border Issues
• E-Commerce often involves buyers and sellers in different states or countries.
• Disputes can arise over which country’s laws apply.
• Risk: A seller in India may face legal action in another country if they violate its
consumer laws.
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2. Ethical Issues in E-Commerce
Ethical issues are the “soft rules” — they may not always be written in law, but breaking
them damages reputation and trust. In the long run, ethical lapses can be just as harmful as
legal violations.
a) Honesty in Product Representation
• Ethically, sellers should show products exactly as they are — no exaggerated claims
or misleading photos.
• Unethical Example: Editing product images to hide defects.
b) Fair Pricing
• Charging fair prices and avoiding exploitative practices (like sudden price hikes
during emergencies) is an ethical duty.
• Unethical Example: Selling essential medicines at inflated prices during a health
crisis.
c) Respect for Customer Privacy
• Even if the law allows certain data collection, ethically, businesses should collect only
what’s necessary and never sell it without consent.
d) Transparency in Policies
• Return, refund, and warranty policies should be clear and easy to find.
• Unethical Example: Hiding return policy details until after purchase.
e) Avoiding Fake Reviews
• Posting fake positive reviews or paying for them misleads customers.
• Unethical Example: A seller creating multiple fake accounts to boost ratings.
f) Accessibility and Inclusivity
• Ethical E-Commerce ensures websites are usable by people with disabilities and
caters to diverse customer needs.
g) Environmental Responsibility
• Using eco-friendly packaging and reducing waste is an ethical choice that customers
increasingly value.
3. How Legal and Ethical Issues Interact
Sometimes, an action can be legal but unethical. For example:
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• A seller may legally collect customer browsing data, but using it to bombard them
with aggressive ads might feel intrusive.
Other times, an action can be both illegal and unethical:
• Selling counterfeit branded goods violates intellectual property laws and is
dishonest.
4. Real-World Example
Case: A popular online marketplace faced backlash when customers received fake branded
shoes.
• Legal issues: Violation of trademark laws, breach of consumer protection provisions.
• Ethical issues: Misleading customers, damaging trust.
The company had to refund customers, remove the sellers, and tighten its verification
process.
5. Why Addressing These Issues Matters
• For Businesses: Avoids legal trouble, builds brand loyalty, and attracts repeat
customers.
• For Customers: Ensures safety, fairness, and trust in online shopping.
• For the Industry: Maintains the credibility of E-Commerce as a whole.
6. Best Practices for E-Commerce Players
1. Know the Law: Stay updated on IT Act, Consumer Protection Act, GST rules, and data
privacy regulations.
2. Be Transparent: Clear product descriptions, pricing, and policies.
3. Secure Data: Use encryption, secure payment gateways, and regular security audits.
4. Respect IPR: Use only original or licensed content.
5. Train Staff: Ensure everyone understands legal and ethical responsibilities.
6. Listen to Feedback: Use complaints to improve processes.
A Story to Tie It Together
Think of the E-Commerce marketplace as a huge online fair. Every stall owner (seller) wants
customers to stop by, buy something, and come back again. The fair has guards (laws) to
stop theft and cheating, and it has an unspoken code of conduct (ethics) so everyone enjoys
the experience.
A stall owner who follows both:
• Displays genuine products.
• Charges fair prices.
• Respects customer privacy.
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• Delivers on promises.
…will not only avoid trouble with the guards but will also become the most popular stall in
the fair.
Conclusion
The success of E-Commerce depends on more than just flashy websites and fast delivery. It
rests on a foundation of legal compliance and ethical conduct. Laws like the IT Act and
Consumer Protection Act set the boundaries, while ethics guide behaviour within those
boundaries.
In the fast-moving digital marketplace, businesses that respect both will not only survive but
thrive — earning not just profits, but the priceless currency of trust.
“This paper has been carefully prepared for educational purposes. If you notice any mistakes or
have suggestions, feel free to share your feedback.”
