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Important Questions: E-Commerce - Page 1

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Q1. What is e-commerce?
Ans. E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. E-commerce (electronic-commerce) refers to business over the Internet. Web sites such as Amazon.com, Buy.com and eBay are all e-commerce sites.

Q2. What are the advantages of e-commerce?
Ans.
1. Lower transaction costs - If an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and customer service costs after the sale by automating processes.

2. 24/7 X 365 business- Online shops do not close. The customer can buy anything anytime without any time constraint.

3. Larger purchases per transaction - Amazon offers a feature that no normal store offers. When you read the description of a book, you also can see "what other people who ordered this book also purchased". That is, you can see the related books that people are actually buying. Because of features like these it is common for people to buy more books that they might buy at a normal bookstore.


4. Integration into the business cycle - A Web site that is well-integrated into the business cycle can offer customers more information than previously available.

5. People can shop in different ways- Traditional mail order companies introduced the concept of shopping from home in your pajamas, and e-commerce offers this same luxury. New features that web sites offer include:

Q3. Define Internet.
Ans. The Internet is a worldwide, publicly accessible series of interconnected computer networks. It is a combination of several media technologies. Data travels across the Internet through several levels of networks until it reaches its destination.

Q4. How and where does the internet originated?
Ans. In August 1962, Licklider introduced his concept of "Galactic Network" at DARPA. In late 1966 Roberts introduced "ARPANET“ based on licklider’s theory, publishing it in 1967. In August 1968, after Roberts and the DARPA funded community had refined the overall structure and specifications for the ARPANET, an RFQ was released by DARPA.
In December 1968, the RFQ was won by a group headed by Frank Heart at Bolt Beranek and Newman (BBN). In September 1969, BBN installed the first IMP at UCLA and the first host computer was connected. In December 1970 the Network Working Group (NWG) working under S. Crocker finished the initial ARPANET Host-to-Host protocol, called the Network Control Protocol (NCP). 
during the period 1971-1972, the network users finally could begin to develop applications. In October 1972 Kahn organized a large, very successful demonstration of the ARPANET at the International Computer Communication Conference (ICCC). in 1972 that the initial "hot" application, electronic mail, was introduced In March Ray Tomlinson at BBN wrote the basic email message send and read software .In July, Roberts expanded its utility by writing the first email utility program to list, selectively read, file, forward, and respond to messages.
Till now internet is expanding its roots.

Q5. How is the communication on the internet possible?
Ans. To communicate on the internet the computers have to follow same set of rules so that they can transfer the data correctly and easily. These rules and regulations are defined in a protocol called TCP/IP. This protocol makes the communication of the various computers on the internet possible.

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