Observation

Many candidates attempted this question and performed well in 1a. However some candidates explained it from traditional commerce point of view without relating it to the internet. For 1b, most candidates’ answers were limited to internet and date. They could not list other facilities. The 1c part of the question was well attempted by candidates.
                    
The expected responses to the question include:
  
1(a) Electronic commerce (E-commerce) is the buying and selling of products over electronic systems such as the internet and other computer networks. OR It is the buying and selling of goods and services as well as transfer of funds through digital communication systems.
                                                                            
1(b) Facilities needed for E-commerce
                                               

1. Data service/internet services
2. Computer
3. Credit card/debit card/bank account
4. Mobile phone
5. POS – Point of sales terminal
6. Automated Teller Machine (ATM)

1(c) Importance of ancillary services to trade

1. Warehousing: It provides storage facilities and security for goods until they are needed.
2. Transportation: It facilitates the movement of people and goods from one point to another.
3. Banking or financing: It makes funds available for businesses.
4. Insurance: It covers the risk involved in doing business.
5. Advertising: It creates awareness of the existence of goods and services.
6. Tourism: It enables travellers to engage in trading activities as they visit various places of interest.
7. Communication: It aids trade by facilitating exchange of information between buyers and sellers.