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Quizzes > Business & Finance > Business & Industry

Think You Know E-Business vs E-Commerce? Take the Quiz!

Dive into these e-commerce questions and master e-business basics.

Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration e-commerce quiz theme with shopping cart laptop credit card on coral background

This e-commerce quiz helps you measure your skills in online selling - from site design to customer experience and marketing. Use it to spot gaps before you launch or grow, have fun as you practice, and keep learning with a follow-up quiz and a quick skills check .

What does e-commerce refer to?
Internet marketing
Virtual reality shopping
Mobile app development
Electronic commerce
E-commerce, short for electronic commerce, is the buying and selling of goods and services over the internet. It encompasses online transactions and digital payment methods. This distinguishes it from purely marketing activities. .
Which of the following is a widely used payment method in e-commerce?
Cash on delivery
Barter system
Credit card
Check mailing
Credit cards are the most common online payment method due to their convenience, security features, and global acceptance. They facilitate instant transactions compared to traditional methods like checks. .
What is the primary purpose of an SSL certificate on an e-commerce site?
Improve search engine rankings
Encrypt data transmitted between user and site
Speed up page load times
Enhance site design
An SSL certificate encrypts data exchanged between visitors and the website, protecting sensitive information like payment details from interception. This builds trust and is often indicated by HTTPS in the URL. .
In e-commerce, what is an online shopping cart?
A shipping warehouse system
A customer loyalty program
Software to store items selected for purchase
A financial budget tool
An online shopping cart lets customers select and temporarily store products they wish to purchase. It simulates a real-world shopping cart for checkout. .
What does B2C stand for in e-commerce?
Business-to-carrier
Back-to-catalog
Base-to-company
Business-to-consumer
B2C means business-to-consumer, where companies sell products or services directly to individual customers online. It contrasts with B2B (business-to-business) models. .
Which of these is an example of an online marketplace?
PayPal
WordPress
Amazon
Shopify admin
An online marketplace like Amazon connects multiple sellers with buyers on a single platform. Individual vendors list items and Amazon handles transactions and logistics. .
What does SEO stand for in the context of e-commerce?
Search engine optimization
Secure e-commerce order
Sales enhancement operation
Shopping experience overview
SEO, or search engine optimization, involves strategies to improve a website's visibility in search engine results, driving organic traffic to e-commerce sites. .
What is a payment gateway in e-commerce?
Tool for managing product listings
Software for customer relationship management
Analytics dashboard for sales data
Service that processes credit card transactions
A payment gateway securely captures and transmits payment data between a customer's bank and the merchant's bank. It's essential for authorizing online payments. .
What does cart abandonment rate measure?
Percentage of online shoppers who leave without purchasing
Speed of checkout process
Number of products left in warehouse
Rate of customer returns after delivery
Cart abandonment rate is the percentage of shoppers who add items to their cart but don't complete the purchase. It's a key metric for optimizing checkout processes. .
Which protocol is primarily used to secure communications on e-commerce websites?
Telnet
HTTPS
SMTP
FTP
HTTPS (HyperText Transfer Protocol Secure) uses SSL/TLS to encrypt data between browsers and servers, ensuring confidentiality and integrity for e-commerce transactions. .
What is an omnichannel retail strategy?
Providing a seamless experience across all channels
Limiting sales to physical stores
Focusing exclusively on mobile apps
Using only online sales channels
An omnichannel strategy integrates online, mobile, and in-store experiences so customers can interact via any channel seamlessly. This enhances customer satisfaction and loyalty. .
What design approach improves mobile commerce usability?
Pop-up heavy content
Flash-based navigation
Responsive web design
Fixed desktop layouts
Responsive web design adapts layout and content to different screen sizes, enhancing usability on smartphones and tablets for e-commerce sites. .
What does conversion rate refer to in e-commerce?
Percentage of visitors who make a purchase
Frequency of email campaigns
Time taken to load product pages
Number of items returned by customers
Conversion rate is calculated by dividing the number of purchases by the total number of site visitors, indicating how effectively a site turns traffic into sales. .
Which is a key benefit of displaying user reviews on product pages?
Reduces website load times
Automatically updates prices
Builds trust and social proof
Increases inventory turnover
User reviews provide social proof and build credibility, encouraging potential buyers to trust products. They can also improve SEO with fresh user-generated content. .
What does PCI DSS regulate in e-commerce?
Rules for international shipping
Standards for secure handling of cardholder data
Guidelines for website design
Requirements for customer support
PCI DSS (Payment Card Industry Data Security Standard) sets requirements to secure credit card data during processing, storage, and transmission. Compliance reduces breach risks. .
What is drop shipping in e-commerce?
Using local warehouses only
Sending free samples to customers
Selling products without holding inventory
Manufacturing products in-house
Drop shipping is a fulfillment model where the retailer transfers customer orders and shipment details to a manufacturer or wholesaler, who then ships directly to the customer. This avoids inventory costs. .
What does Customer Lifetime Value (CLV) measure?
Time taken to convert a lead
Total revenue expected from a customer over their relationship
Average purchase frequency per month
Net promoter score over time
CLV estimates the net profit attributed to the entire future relationship with a customer. It helps businesses prioritize marketing spend on high-value segments. .
Which analytics tool is most commonly used for e-commerce web traffic analysis?
Slack
GitHub
Google Analytics
Adobe Dreamweaver
Google Analytics provides comprehensive data on user behavior, traffic sources, and conversion funnels for e-commerce sites. It's free and widely adopted. .
What is the purpose of A/B testing in e-commerce?
Analyze social media engagement
Compare two versions to see which converts better
Test site security vulnerabilities
Monitor server uptime
A/B testing involves showing two variants of a webpage to users and measuring which one achieves higher conversion rates, allowing data-driven design improvements. .
Under GDPR, what must e-commerce sites provide regarding user data?
Unlimited data retention periods
Automatic data sharing with third parties
Right for users to request erasure of their data
Exclusive profiling without consent
GDPR mandates that individuals can request deletion of their personal data ("right to be forgotten"), and sites must comply or justify retention. .
How does upselling differ from cross-selling in an e-commerce context?
They are the same strategy
Upselling lowers price; cross-selling bundles discounts
Upselling encourages a higher-value product; cross-selling suggests complementary items
Upselling adds warranty; cross-selling upgrades shipping
Upselling persuades customers to buy a more expensive version of the product, while cross-selling recommends additional, related products to increase order value. .
What is the role of a Content Delivery Network (CDN) in e-commerce?
Manage customer payment information
Automate email marketing campaigns
Generate product descriptions
Serve content from servers closest to users for faster load times
A CDN caches website assets across distributed servers worldwide, reducing latency and improving load speeds for global visitors, which is crucial for e-commerce performance. .
Which security measure helps prevent phishing attacks on e-commerce platforms?
Allowing automatic script execution
Disabling SSL certificates
Implementing two-factor authentication
Using default admin passwords
Two-factor authentication adds an extra verification step, making it harder for attackers to use stolen credentials in phishing attacks. .
How does dynamic pricing maximize revenue in e-commerce?
By eliminating price fluctuations
By charging a flat fee irrespective of season
By setting fixed discounts for all customers
By adjusting prices in real time based on supply and demand
Dynamic pricing algorithms analyze market trends, customer behavior, and inventory levels to adjust prices in real time, optimizing revenue and competitiveness. .
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Study Outcomes

  1. Assess E-Commerce Fundamentals -

    Understand core concepts covered in the e commerce quiz, including the distinctions between e-business and e-commerce models.

  2. Differentiate Business Models -

    Analyze real-world examples to distinguish B2B, B2C, C2C and other digital commerce quiz scenarios.

  3. Recall Key Metrics -

    Identify essential e commerce questions around conversion rates, average order value and customer acquisition cost.

  4. Evaluate Strategy Effectiveness -

    Apply criteria from the online commerce quiz to assess marketing, payment and fulfillment strategies.

  5. Improve Transaction Best Practices -

    Implement insights from the e business quiz to optimize checkout flows, security and customer experience.

Cheat Sheet

  1. Distinguishing E-Commerce from E-Business -

    In an e commerce quiz or e business quiz, remember that e-business covers all online business processes, while e-commerce focuses on transactional activities like buying and selling goods. A handy mnemonic - "Business Beats Commerce" (BBC) - helps recall that e-business has the broader scope. For detailed definitions, refer to resources from the University of Maryland and Investopedia.

  2. Understanding Payment Gateways and Merchant Accounts -

    Payment gateways are the digital equivalent of a POS terminal, encrypting customer data for secure checkouts, while merchant accounts hold funds before transfer to a business bank account. Remember the formula "Secure Transaction = Encryption + Compliance," as outlined by PCI DSS standards from the PCI Security Standards Council. This e commerce questions tip ensures you're ready for any online commerce quiz scenario.

  3. Calculating Customer Acquisition Cost (CAC) -

    Use the CAC formula - CAC = (Total Marketing Spend + Sales Expenses) ÷ New Customers Acquired - to gauge efficiency in a digital commerce quiz context. For example, if you spend $5,000 on ads and sales and gain 100 customers, CAC equals $50, reinforcing budgeting decisions. MIT Sloan research highlights the importance of tracking CAC alongside Customer Lifetime Value (CLV) for balanced growth.

  4. Applying Just-In-Time Inventory Management -

    Just-In-Time (JIT) is a lean inventory strategy where goods arrive only as needed, reducing holding costs and stockouts - a key e business quiz topic. Think "Zero Waste, Maximum Sell" to remember JIT goals, as discussed in Harvard Business School case studies. This approach boosts agility in fast-paced online commerce quiz environments.

  5. Optimizing Conversion Rate with A/B Testing -

    A/B testing compares two versions of a web element (like a CTA button) to see which yields a higher conversion rate - (Conversions ÷ Visitors) × 100%. For instance, swapping a green "Buy Now" button for a blue one and tracking results over 1,000 visits can reveal a 5% lift in sales. Google Optimize and Nielsen Norman Group research offer best practices for effective CRO trials, crucial for any online commerce quiz or digital commerce quiz challenge.

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