Question 1

Last-mile delivery refers to:

Accepted Answer

**Last-mile** is the final step from hub to the customer’s address (concept).

Question 2

Which stage is NOT typically part of an e-commerce transaction flow?

Accepted Answer

E-commerce flow includes discovery → cart → checkout → payment → fulfilment → support, not incorporation (concept).

Question 3

A hybrid model in e-commerce typically means:

Accepted Answer

Many firms combine **marketplace + inventory** for variety and control: a hybrid approach (overview).

Question 4

AHT in customer support refers to:

Accepted Answer

**AHT** is average handling time per support case (overview).

Question 5

B2C e-commerce means:

Accepted Answer

**B2C** is selling by a business directly to the final consumer online (concept).

Question 6

E-business differs from e-commerce because e-business:

Accepted Answer

**E-business** covers wider digital processes (ERP/CRM/SCM) in addition to transactions (concept).

Question 7

AI personalization in e-commerce is commonly used for:

Accepted Answer

**AI personalization** powers recommendations and relevance, improving conversion and AOV (overview).

Question 8

A payment gateway in e-commerce is mainly used to:

Accepted Answer

A **payment gateway** securely transmits payment details and routes transactions for authorization (concept).

Question 9

Phishing is best defined as:

Accepted Answer

**Phishing** is social engineering to steal logins, card details, or OTPs (concept).

Question 10

Data minimization in privacy means:

Accepted Answer

**Data minimization** reduces privacy risk by limiting collection to what is necessary (overview).

Question 11

PLP in e-commerce stands for:

Accepted Answer

**PLP** means Product Listing Page where multiple products are displayed with filters/sort (concept).

Question 12

Which option can reduce checkout friction the most for many users in India?

Accepted Answer

**UPI** is fast and widely adopted, often improving payment success and checkout speed (concept).

Question 13

Which is a typical fraud prevention technique used by gateways/platforms?

Accepted Answer

**Risk scoring** and **velocity checks** help detect abnormal/suspicious transactions (overview).

Question 14

Which record is useful for audits and dispute resolution in e-commerce?

Accepted Answer

Keeping **order/invoice/return/refund logs** supports audits and customer disputes (overview).

Question 15

Direct-to-Consumer (D2C) refers to:

Accepted Answer

**D2C** means a brand sells directly to consumers without traditional intermediaries (concept).

Question 16

A funnel in e-commerce is used to:

Accepted Answer

A **funnel** shows stages (visit → purchase) and where customers drop off (concept).

Question 17

A common mistake in A/B testing is:

Accepted Answer

Stopping early can lead to wrong conclusions due to insufficient sample size (concept).

Question 18

Which is the best example of error prevention in e-commerce checkout?

Accepted Answer

Address/pincode validation prevents failed deliveries and improves customer experience (concept).

Question 19

CRO in e-commerce refers to:

Accepted Answer

**CRO** is improving the website/app to increase the % of visitors who complete desired actions (concept).

Question 20

A healthy unit economics relationship is usually:

Accepted Answer

Businesses aim for **LTV > CAC** so customer value exceeds acquisition cost (concept).

Question 21

Data minimization means collecting only necessary customer data. (True/False)

Accepted Answer

True. **Data minimization** reduces privacy risk by limiting data collection to what is needed (overview).

Question 22

Define SEO.

Accepted Answer

**SEO (Search Engine Optimization)** is improving website content and structure to increase **organic** visibility and traffic from search engines (concept).

Question 23

Define payment gateway.

Accepted Answer

A **payment gateway** is a service that securely captures and routes online payment information between the customer, merchant, and bank/network to get **authorization** (concept).

Question 24

What is CRO?

Accepted Answer

**CRO (Conversion Rate Optimization)** is improving the website/app to increase the percentage of visitors who complete a desired action like purchase (concept).

Question 25

What is safety stock?

Accepted Answer

**Safety stock** is extra inventory kept to protect against uncertainty in demand or lead time and avoid stock-outs (concept).

Question 26

PLP stands for Product Listing Page. (True/False)

Accepted Answer

True. **PLP** is the page that lists multiple products with filters/sorting (concept).

Question 27

Define chargeback (in simple terms).

Accepted Answer

**Chargeback** is a card payment dispute where the customer asks the bank to reverse a transaction after investigation (overview).

Question 28

A/B testing compares two versions to see which improves a KPI. (True/False)

Accepted Answer

True. **A/B testing** compares A (control) vs B (variant) to improve a metric like conversion (concept).

Question 29

Conversion rate equals Orders divided by Visits. (True/False)

Accepted Answer

True. **Conversion rate** = Orders / Visits (concept).

Question 30

A funnel shows step-by-step user journey and drop-offs. (True/False)

Accepted Answer

True. A **funnel** maps stages (visit → purchase) and where users drop off (concept).

Question 31

List key support channels in e-commerce and one advantage of each (use a table).

Accepted Answer

Channels and advantages (concept):

| Channel | Advantage |
|---|---|
| **Chat** | fast responses; can combine bot + human |
| **Email tickets** | documented trail; good for non-urgent issues |
| Phone/call center | urgent/complex issues resolved quickly |
| **Self-service (FAQs/tracking)** | reduces effort and support load |

Write any three rows.

Question 32

Differentiate SEO and SEM (any three points) using a table.

Accepted Answer

Difference (concept):

| Basis | **SEO** | **SEM (Paid search)** |
|---|---|---|
| Cost | mainly time/effort | pay per click/impression |
| Speed | slower to build | fast traffic |
| Sustainability | long-term | stops when spend stops |

Any three points are sufficient.

Question 33

List any three social media marketing activities for e-commerce and one benefit of each (use a table).

Accepted Answer

Activities and benefits (concept):

| Activity | Example | Benefit |
|---|---|---|
| **Content/UGC** | reels, demos, reviews | builds trust + awareness |
| **Paid ads** | targeted campaigns | drives traffic + conversions |
| Community engagement | comments/DM support | improves loyalty |
| Live commerce (overview) | live product showcase | higher engagement |

Write any three rows.

Question 34

List common checkout failures and suitable fixes (any three) using a table.

Accepted Answer

Failures and fixes (concept):

| Failure | Impact | Fix (concept) |
|---|---|---|
| payment failure | order not completed | retry + multiple payment options |
| hidden charges | trust loss | show full breakup early |
| long forms | abandonment | autofill + fewer fields |
| stock out at checkout | frustration | real-time stock check/reservation |

Write any three rows.

Question 35

Explain omnichannel support (any three points) using a table.

Accepted Answer

**Omnichannel support** provides a consistent customer experience across multiple channels (concept).

| Point | Meaning (concept) |
|---|---|
| Channel continuity | customer can switch chat → email → phone smoothly |
| Unified history | agent can see past tickets/orders |
| Consistent policies | same refund/return rules across channels |

Any three points are sufficient.

Question 36

Discuss CRO techniques to reduce cart abandonment (exam-style) and include a small table.

Accepted Answer

### Meaning
**CRO** aims to increase purchases by improving the shopping experience (concept).

### Techniques to reduce cart abandonment
- simplify **checkout** (fewer steps, guest checkout)
- show full price breakup early (avoid hidden charges)
- improve payment success (multiple options, retry)
- show trust signals (reviews, secure payment, easy returns)
- improve speed and error handling (concept)

| Problem | CRO fix (concept) |
|---|---|
| long forms | autofill + saved addresses |
| payment failures | retry + alternate payment options |
| uncertainty | delivery date + return policy on PDP/checkout |

Conclusion: Removing friction and building trust improves conversion (concept).

Question 37

Explain retargeting and its role in reducing cart abandonment (exam-style) with a simple flowchart and table.

Accepted Answer

### Meaning
**Retargeting** shows ads/messages to users who visited, viewed products, or added to cart but did not purchase (concept).

Flowchart:

```text
Visit/View -> Leave -> Retarget Ad/Message -> Return -> Checkout -> Purchase
```

| Segment | Example message (concept) |
|---|---|
| Product viewers | “Still interested? See similar options” |
| Cart abandoners | “Your cart is waiting” + reminder/offer |
| Past buyers | cross-sell/upsell recommendations |

Conclusion: Retargeting works because it targets warm users and addresses hesitation, improving conversion (concept).

Question 38

Explain e-commerce KPIs and how they guide decisions (exam-style) with a table.

Accepted Answer

### Meaning
**KPIs** are measurable indicators used to evaluate performance and make improvements in e-commerce (concept).

### KPI → decision mapping (table)

| KPI | What it indicates (concept) | Typical action (concept) |
|---|---|---|
| **Conversion rate** | site effectiveness | improve UX/PDP/checkout |
| Cart abandonment | checkout friction | simplify steps, show charges early |
| **Payment success** | payment reliability | add options, retry flow, fix failures |
| Return rate | mismatch/quality issues | improve catalogue, QC, packaging |
| **AOV** | basket size | bundles, cross-sell, pricing offers |

Conclusion: Tracking KPIs continuously improves conversion, cost control and profitability (concept).

Question 39

Discuss last-mile delivery challenges and suggest improvements (exam-style) with a table.

Accepted Answer

### Challenges
**Last-mile delivery** is expensive and complex due to many addresses, traffic, failed attempts and COD handling (concept).

| Challenge | Improvement (concept) |
|---|---|
| address errors | pincode/address validation + map pin |
| failed attempt | delivery slots + OTP at delivery |
| high cost per drop | route optimization + local hubs |
| COD/RTO | confirmation calls + risk rules |

Conclusion: Improving first-attempt success and reliability reduces cost and increases customer trust (concept).

Question 40

Explain security measures in digital payments and why they are required (exam-style) with a table.

Accepted Answer

### Why security is required
Online payments involve sensitive data and remote authorization, so security is needed to prevent fraud and protect **privacy** (concept).

### Measures (table)

| Measure | Purpose (concept) |
|---|---|
| **Encryption (HTTPS/TLS)** | protects data in transit |
| **OTP/2FA** | prevents unauthorized use |
| Tokenization | reduces exposure of card details |
| Fraud monitoring | flags suspicious patterns |
| Alerts & device checks | reduce account takeover risk |

Conclusion: Strong security improves trust and reduces losses/chargebacks (concept).

E-Commerce — Question Paper

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