Bcom Bachelor of Commerce Bachelor of Commerce: E-Commerce 2 — Questions and Answers
Question 1: Which payment gateway feature allows merchants to store customer card details securely for future transactions?
- Tokenization (Correct answer)
- SSL Encryption
- 3D Secure
- PCI-DSS Compliance
Correct answer: Tokenization
Tokenization replaces sensitive card data with a non-sensitive placeholder token, enabling safe storage for repeat purchases.
Question 2: A business model where a retailer sells products without holding inventory, shipping directly from the supplier to the customer, is called:
- Affiliate marketing
- Dropshipping (Correct answer)
- White labeling
- Consignment selling
Correct answer: Dropshipping
Dropshipping lets retailers list products and forward orders to suppliers who handle fulfillment, eliminating the need for inventory.
Question 3: Which metric measures the percentage of website visitors who complete a desired action such as making a purchase?
- Bounce rate
- Click-through rate
- Conversion rate (Correct answer)
- Cart abandonment rate
Correct answer: Conversion rate
Conversion rate is calculated as (number of conversions / total visitors) × 100, indicating how effectively a site turns visitors into customers.
Question 4: In e-commerce, 'dynamic pricing' refers to:
- Fixed prices set annually by management
- Prices that adjust in real time based on demand, competition, and other factors (Correct answer)
- Discounts applied only to loyal customers
- Uniform pricing across all sales channels
Correct answer: Prices that adjust in real time based on demand, competition, and other factors
Dynamic pricing algorithms change product prices automatically in response to market conditions, competitor pricing, and demand fluctuations.
Question 5: Which type of e-commerce fraud involves a buyer falsely claiming they did not receive an item to obtain a refund while keeping the product?
- Phishing
- Friendly fraud (chargeback fraud) (Correct answer)
- Identity theft
- Carding
Correct answer: Friendly fraud (chargeback fraud)
Friendly fraud occurs when a legitimate cardholder makes a purchase and then disputes it with their bank, falsely claiming non-receipt or non-authorization.
Question 6: Which e-commerce fulfillment model outsources warehousing, packing, and shipping to a third-party logistics provider?
- In-house fulfillment
- 3PL (Third-Party Logistics) (Correct answer)
- Dropshipping
- Cross-docking
Correct answer: 3PL (Third-Party Logistics)
3PL providers manage storage and order fulfillment on behalf of the retailer, allowing businesses to scale without owning warehouse infrastructure.
Question 7: What is the primary purpose of an e-commerce 'wishlist' feature?
- To process payments faster
- To allow customers to save items for future purchase, boosting retention and remarketing opportunities (Correct answer)
- To compare product specifications side by side
- To automatically apply discount codes at checkout
Correct answer: To allow customers to save items for future purchase, boosting retention and remarketing opportunities
Wishlists save items a customer intends to buy later and give merchants data to send personalized reminders or price-drop alerts.
Bcom Bachelor of Commerce Bachelor of Commerce: E-Commerce 2
Which payment gateway feature allows merchants to store customer card details securely for future transactions?