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E-Commerce MCQs and Answers With Explanation – This article introduces the concept of E-Commerce and provides a set of E-Commerce Multiple Choice Questions that individuals can use to test their expertise in the field. E-commerce, or electronic commerce, refers to the buying and selling of goods and services online. It has become a critical component of modern business, allowing organizations to reach customers globally and conduct transactions more efficiently.
E-Commerce MCQs with Answers
To test one’s knowledge and understanding of e-commerce concepts, tools, and techniques, E-Commerce MCQs with Answers are often used as a reliable assessment tool. This article provides a set of Top 45 MCQs on E-Commerce that will help individuals enhance their knowledge and test their comprehension of this essential subject.
E-Commerce Multiple Choice Questions
| Name | E-Commerce |
| Exam Type | MCQ (Multiple Choice Questions) |
| Category | Technical Quiz |
| Mode of Quiz | Online |
Top 45 MCQs on E-Commerce | Pratice Online Quiz
1. What does e-commerce mean?
A. Electronic communication
B. Electronic commerce
C. Electronic computer
D. Electronic calculator
Answer: B. Electronic commerce.
Explanation: E-commerce refers to buying and selling of goods and services using the internet or other electronic means.
2. Which of the following is an example of e-commerce?
A. Buying groceries at a supermarket
B. Ordering food at a restaurant
C. Booking a hotel room online
D. Visiting a physical store to buy clothes
Answer: C. Booking a hotel room online.
Explanation: Booking a hotel room online is an example of e-commerce as it involves buying a service online.
3. Which of the following is a benefit of e-commerce for consumers?
A. Limited product choices
B. High prices
C. Time savings
D. Limited payment options
Answer: C. Time savings.
Explanation: E-commerce allows consumers to shop from the comfort of their own homes, saving them time and effort.
4. What is B2B e-commerce?
A. Business-to-business e-commerce
B. Business-to-consumer e-commerce
C. Consumer-to-consumer e-commerce
D. Government-to-consumer e-commerce
Answer: A. Business-to-business e-commerce.
Explanation: B2B e-commerce involves businesses selling products or services to other businesses.
5. Which of the following is a disadvantage of e-commerce for small businesses?
A. Increased visibility
B. Reduced marketing costs
C. Limited access to customer data
D. Increased competition
Answer: D. Increased competition.
Explanation: E-commerce allows small businesses to compete with larger businesses, but it also increases competition from other small businesses.
6. What is a payment gateway?
A. A website where customers can make payments
B. A software application that processes payments
C. A physical location where payments are accepted
D. A bank that provides payment services
Answer: B. A software application that processes payments.
Explanation: A payment gateway is a software application that allows businesses to process payments securely.
7. What is a shopping cart?
A. A physical cart used for shopping in a store
B. A virtual cart used for shopping online
C. A loyalty program offered by online retailers
D. A type of online auction
Answer: B. A virtual cart used for shopping online.
Explanation: A shopping cart is a virtual cart that allows consumers to add items to their cart while shopping online.
8. What is a chargeback?
A. A refund issued by the seller
B. A dispute initiated by the buyer with their bank
C. A fee charged by the payment processor
D. A discount offered by the seller
Answer: B. A dispute initiated by the buyer with their bank.
Explanation: A chargeback is a dispute initiated by the buyer with their bank, requesting a refund for a transaction.
9. What is dropshipping?
A. A type of e-commerce where the seller doesn’t hold inventory
B. A type of e-commerce where the buyer pays in installments
C. A type of e-commerce where the seller only accepts cryptocurrencies
D. A type of e-commerce where the seller only ships to certain countries
Answer: A. A type of e-commerce where the seller doesn’t hold inventory.
Explanation: Dropshipping is a type of e-commerce where the seller doesn’t hold inventory and instead fulfills orders by purchasing products from a third-party supplier.
10. What is a fulfillment center?
A. A physical location where products are stored and shipped
B. A software application used to process orders
C. A customer service center for online orders
D. A type of payment gateway
Answer: A. A physical location where products are stored and shipped.
Explanation: A fulfillment center is a physical location where products are stored and shipped to customers after orders are placed online.
11. What is a digital product?
A. A physical product that is sold online
B. A product that is delivered electronically
C. A product that is only available in certain regions
D. A product that is not available for purchase online
Answer: B. A product that is delivered electronically.
Explanation: A digital product is a product that is delivered electronically, such as a software program, e-book, or music file.
12. What is a virtual storefront?
A. A physical store that also has an online presence
B. An online store that does not have a physical location
C. A store that only sells digital products
D. A store that only accepts cryptocurrency payments
Answer: B. An online store that does not have a physical location.
Explanation: A virtual storefront is an online store that does not have a physical location.
13. What is a product feed?
A. A list of products and their descriptions that can be used for advertising
B. A list of products that are out of stock
C. A list of products that are only available for a limited time
D. A list of products that are not available for purchase online
Answer: A. A list of products and their descriptions that can be used for advertising.
Explanation: A product feed is a list of products and their descriptions that can be used for advertising on various platforms.
14. What is a sales funnel?
A. A tool used to track sales and revenue
B. A series of steps that a customer takes to make a purchase
C. A type of advertising campaign
D. A type of payment processor
Answer: B. A series of steps that a customer takes to make a purchase.
Explanation: A sales funnel is a series of steps that a customer takes to make a purchase, starting from awareness of a product to the actual purchase.
15. What is a landing page?
A. The homepage of a website
B. A page where customers can leave feedback
C. A page where customers can view their order history
D. A page where customers land after clicking on an advertisement
Answer: D. A page where customers land after clicking on an advertisement.
Explanation: A landing page is a page where customers land after clicking on an advertisement, designed to convert them into customers.
16. What is retargeting?
A. A type of payment method
B. A type of advertising that targets customers who have already interacted with a brand
C. A type of shipping method
D. A type of customer service technique
Answer: B. A type of advertising that targets customers who have already interacted with a brand.
Explanation: Retargeting is a type of advertising that targets customers who have already interacted with a brand, such as by visiting their website or adding products to their cart.
17. What is an upsell?
A. A type of customer service technique
B. A type of advertising campaign
C. A technique used to increase the value of a customer’s purchase
D. A type of payment processor
Answer: C. A technique used to increase the value of a customer’s purchase.
Explanation: An upsell is a technique used to increase the value of a customer’s purchase by suggesting additional products or services.
18. What is a cross-sell?
A. A type of payment method
B. A type of advertising campaign
C. A technique used to sell products that complement the customer’s original purchase
D. A type of shipping method
Answer: C. A technique used to sell products that complement the customer’s original purchase.
Explanation: A cross-sell is a technique used to sell products that complement the customer’s original purchase,
19. What is a call-to-action (CTA)?
A. A button or link that prompts a customer to take a specific action
B. A type of advertising campaign
C. A type of customer service technique
D. A type of payment processor
Answer: A. A button or link that prompts a customer to take a specific action.
Explanation: A call-to-action (CTA) is a button or link that prompts a customer to take a specific action, such as making a purchase or subscribing to a newsletter.
20. What is a checkout page?
A. The page where a customer enters their shipping and billing information to complete a purchase
B. The page where a customer selects the products they want to purchase
C. The page where a customer can leave feedback about their experience
D. The page where a customer can view their order history
Answer: A. The page where a customer enters their shipping and billing information to complete a purchase.
Explanation: A checkout page is the page where a customer enters their shipping and billing information to complete a purchase.
21. What is a customer persona?
A. A detailed description of a hypothetical ideal customer
B. A list of products that a customer has previously purchased
C. A type of customer service technique
D. A type of payment processor
Answer: A. A detailed description of a hypothetical ideal customer.
Explanation: A customer persona is a detailed description of a hypothetical ideal customer, including their demographics, behaviors, and preferences.
22. What is a discount code?
A. A code that customers can enter at checkout to receive a discount on their purchase
B. A code used to track customer behavior on a website
C. A code used to identify a particular product in a product feed
D. A code used to encrypt customer data during checkout
Answer: A. A code that customers can enter at checkout to receive a discount on their purchase.
Explanation: A discount code is a code that customers can enter at checkout to receive a discount on their purchase.
23. What is a product description?
A. A detailed written description of a product’s features and benefits
B. A list of product names and prices
C. A type of customer service technique
D. A type of payment processor
Answer: A. A detailed written description of a product’s features and benefits.
Explanation: A product description is a detailed written description of a product’s features and benefits, typically used on a product page to inform and persuade customers.
24. What is a product category?
A. A group of products that are similar in nature and purpose
B. A type of payment processor
C. A type of advertising campaign
D. A type of customer service technique
Answer: A. A group of products that are similar in nature and purpose.
Explanation: A product category is a group of products that are similar in nature and purpose, such as “electronics” or “apparel.”
25. What is a product variation?
A. A specific version of a product with different features or options
B. A type of payment processor
C. A type of advertising campaign
D. A type of customer service technique
Answer: A. A specific version of a product with different features or options.
Explanation: A product variation is a specific version of a product with different features or options, such as different colors or sizes.
26. What is a product review?
A. A customer’s written evaluation of a product’s quality and usefulness
B. A list of products that are currently on sale
C. A type of customer service technique
D. A type of payment processor
Answer: A. A customer’s written evaluation of a product’s quality and usefulness.
Explanation: A product review is a customer’s written evaluation of a product’s quality and usefulness, typically used on a product page to provide social proof and inform purchase decisions.
27. What is a customer review?
A. A customer’s written evaluation of their overall experience with an online store
B. A list of products that a customer has previously purchased
C. A type of advertising campaign
D. A type of payment processor
Answer: A. A customer’s written evaluation of their overall experience with an online store.
Explanation: A customer review is a customer’s written evaluation of their overall experience with an online store, typically used to provide social proof and inform potential customers about the store’s reputation.
28. What is an abandoned cart?
A. A shopping cart that a customer has filled with items but not completed the purchase
B. A type of customer service technique
C. A type of payment processor
D. A type of advertising campaign
Answer: A. A shopping cart that a customer has filled with items but not completed the purchase.
Explanation: An abandoned cart is a shopping cart that a customer has filled with items but not completed the purchase, typically used as an opportunity to send a reminder or incentive to complete the purchase.
29. What is a return policy?
A. A set of rules and procedures that outline how customers can return or exchange products
B. A list of products that are currently on sale
C. A type of customer service technique
D. A type of payment processor
Answer: A. A set of rules and procedures that outline how customers can return or exchange products.
Explanation: A return policy is a set of rules and procedures that outline how customers can return or exchange products, typically used to provide assurance and transparency for customers.
30. What is a shipping policy?
A. A set of rules and procedures that outline how products are shipped to customers
B. A list of products that are currently on sale
C. A type of customer service technique
D. A type of payment processor
Answer: A. A set of rules and procedures that outline how products are shipped to customers.
Explanation: A shipping policy is a set of rules and procedures that outline how products are shipped to customers, typically used to provide transparency and expectation management for customers.
31. What is a dropshipping business model?
A. A model where the retailer does not keep inventory in stock, but instead transfers the order and shipment details to a manufacturer or supplier who then ships the products directly to the customer.
B. A model where the retailer keeps large amounts of inventory in stock.
C. A model where the retailer sells products only to a specific target audience.
D. A model where the retailer sells products through a physical store only.
Answer: A. A model where the retailer does not keep inventory in stock, but instead transfers the order and shipment details to a manufacturer or supplier who then ships the products directly to the customer.
Explanation: In a dropshipping business model, the retailer does not keep inventory in stock, but instead transfers the order and shipment details to a manufacturer or supplier who then ships the products directly to the customer.
32. What is a checkout process?
A. The process by which a customer completes a purchase on an e-commerce website
B. The process of selecting products to purchase on an e-commerce website
C. A type of customer service technique
D. A type of payment processor
Answer: A. The process by which a customer completes a purchase on an e-commerce website.
Explanation: The checkout process is the process by which a customer completes a purchase on an e-commerce website, typically involving selecting products, entering payment and shipping information, and submitting the order for processing.
33. What is a SSL certificate?
A. A digital certificate that authenticates the identity of a website and encrypts data transmitted between the website and its visitors
B. A type of payment processor
C. A type of advertising campaign
D. A type of customer service technique
Answer: A. A digital certificate that authenticates the identity of a website and encrypts data transmitted between the website and its visitors.
Explanation: An SSL certificate is a digital certificate that authenticates the identity of a website and encrypts data transmitted between the website and its visitors, typically used to ensure the security and privacy of sensitive information transmitted online.
34. What is a subscription model?
A. A model where customers pay a recurring fee to receive a product or service at regular intervals
B. A model where customers pay a one-time fee to receive a product or service
C. A model where customers can choose to pay what they want for a product or service
D. A model where customers receive a product or service for free
Answer: A. A model where customers pay a recurring fee to receive a product or service at regular intervals.
Explanation: In a subscription model, customers pay a recurring fee to receive a product or service at regular intervals, typically monthly or annually.
35. What is a fraud detection system?
A. An e-commerce system designed to detect and prevent fraudulent transactions
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. An e-commerce system designed to detect and prevent fraudulent transactions.
Explanation: A fraud detection system is an e-commerce system designed to detect and prevent fraudulent transactions, typically using algorithms and other techniques to analyze transaction data and identify suspicious behavior.
36. What is an affiliate program?
A. A program where third-party websites or individuals promote a company’s products or services in exchange for a commission on sales
B. A program where customers receive a commission on their own purchases
C. A type of payment processor
D. A type of customer service technique
Answer: A. A program where third-party websites or individuals promote a company’s products or services in exchange for a commission on sales.
Explanation: An affiliate program is a program where third-party websites or individuals promote a company’s products or services in exchange for a commission on sales, typically used to increase brand awareness and drive sales.
37. What is a cross-selling strategy?
A. A strategy where a company promotes additional products or services to customers who have already purchased something
B. A strategy where a company promotes its products or services through a network of affiliates
C. A type of customer service technique
D. A type of payment processor
Answer: A. A strategy where a company promotes additional products or services to customers who have already purchased something.
Explanation: A cross-selling strategy is a strategy where a company promotes additional products or services to customers who have already purchased something, typically used to increase sales and customer loyalty.
38. What is a bundling strategy?
A. A strategy where a company sells multiple products or services together as a single package
B. A strategy where a company promotes its products or services through a network of affiliates
C. A type of customer service technique
D. A type of payment processor
Answer: A. A strategy where a company sells multiple products or services together as a single package.
Explanation: A bundling strategy is a strategy where a company sells multiple products or services together as a single package, typically used to increase sales and offer customers greater value.
39. What is a lead magnet?
A. An incentive offered by a company in exchange for a potential customer’s contact information
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. An incentive offered by a company in exchange for a potential customer’s contact information.
Explanation: A lead magnet is an incentive offered by a company in exchange for a potential customer’s contact information, typically used to build an email list and generate leads for future sales and marketing efforts.
40. What is a call to action?
A. A statement or button that encourages a website visitor to take a specific action, such as making a purchase or signing up for a newsletter
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. A statement or button that encourages a website visitor to take a specific action, such as making a purchase or signing up for a newsletter.
Explanation: A call to action is a statement or button that encourages a website visitor to take a specific action, such as making a purchase or signing up for a newsletter, typically used to improve conversion rates.
41. What is A/B testing?
A. A method of testing two different versions of a website or marketing campaign to see which performs better
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. A method of testing two different versions of a website or marketing campaign to see which performs better.
Explanation: A/B testing is a method of testing two different versions of a website or marketing campaign to see which performs better, typically used to improve conversion rates and optimize marketing efforts.
42. What is a bounce rate?
A. The percentage of website visitors who leave a site without taking any action
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. The percentage of website visitors who leave a site without taking any action.
Explanation: A bounce rate is the percentage of website visitors who leave a site without taking any action, typically used as a measure of website effectiveness and user engagement.
43. What is a conversion rate?
A. The percentage of website visitors who take a specific action, such as making a purchase or filling out a form
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. The percentage of website visitors who take a specific action, such as making a purchase or filling out a form.
Explanation: A conversion rate is the percentage of website visitors who take a specific action, such as making a purchase or filling out a form, typically used to measure the effectiveness of marketing campaigns and website optimization efforts.
44. What is PCI compliance?
A. A set of security standards for credit card transactions
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. A set of security standards for credit card transactions.
Explanation: PCI compliance refers to a set of security standards for credit card transactions, typically required by payment processors and credit card companies to protect customer payment information.
45. What is a shipping label?
A. A label affixed to a package that includes shipping information such as the recipient’s address and tracking number
B. A type of payment processor
C. A type of customer service technique
D. A type of advertising campaign
Answer: A. A label affixed to a package that includes shipping information such as the recipient’s address and tracking number.
Explanation: A shipping label is a label affixed to a package that includes shipping information such as the recipient’s address and tracking number, typically used to facilitate the shipping and delivery process.
Understanding e-commerce concepts and techniques are essential for any individual seeking a career in the field of online business. These E-commerce MCQs provide a useful tool for assessing and enhancing one’s knowledge of this critical subject. Follow the Freshersnow website for software-related articles, jobs, quizzes, and other useful notifications.