Certified Supply Chain Professional (CSCP) Practice Exam

What is a key characteristic of electronic commerce (e-commerce)?

1. Focus on in-person sales processes

2. Engagement within the community

3. Conducting electronic transactions

4. Utilizing print media for advertisements

The correct answer is: Conducting electronic transactions

A key characteristic of electronic commerce (e-commerce) is the conducting of electronic transactions. E-commerce fundamentally involves the buying and selling of goods and services over the internet, which directly means that transactions are executed electronically rather than through traditional brick-and-mortar methods. This encompasses a wide range of activities, from simple retail transactions to complex supply chain operations that include online banking and digital marketplaces. By focusing on electronic transactions, e-commerce enables businesses and consumers to interact seamlessly regardless of geographic barriers. It enhances efficiency, reduces transaction times, and often leads to cost savings for both vendors and customers. The increasing reliance on electronic transactions has also encouraged the development of various technologies such as secure payment systems and digital wallets, which further streamline the e-commerce experience. The other choices highlight aspects that are either less relevant to e-commerce or focus on traditional commerce methods, which do not represent the essence of e-commerce as effectively.