Abstract: E-commerce, is conducting business over the Internet. Usually it refers to buying and selling goods, and transferring money digitally. There are numerous advantages to e-commerce business, not which is reduced transaction costs. When offline stores calculate transaction costs, they have to calculate in unlimited business spendings along with the actual number of transactions. When there are fewer transactions, the cost of per transaction is higher. On the other hand, transactions arriving in high quantity can make your distributors happy. In e-commerce business, the transaction cost is same across the board, whether one order or thousands come in.