In the beginning, the e-commerce industry couldn’t get sufficient response and business because of slow speed of internet, little consumer acceptance, and insufficient logistics infrastructure. But in the beginning of new millennium in 2000, significant development in e-business was well-noticed in the fields of travel and tourism, retail, group purchasing and educational services in first five years of new millennium. Thus, 2005 witnessed the second phase of growth of E-commerce. The private airlines (LCC) started selling the tickets online and the travel and tourism sector got increased. Consequently, the concept of the air travel has been changed from amenity to affordability for a larger section. The growth of online retail business was partly driven by changing urban consumes lifestyle and the need for convenience of shopping from home. After 2007, many online retail websites emerged on the scene.

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Keywords: e-Commerce, Insufficient Logistics Infrastructure, LCC, Retail Business.