On-line shopping is a recent phenomenon in the field of E-Business and definitely going to be the future of shopping in the world. Most of the companies are running their on-line portals to sell their products/services on-line. Though online shopping is very common outside India, its growth in Indian Market, which is a large and strategic consumer market, is still not in line with the global market. The potential growth of on-line shopping in India. Currently, the retail industry in India is booming. It is not widely accepted the way it is accepted in Asian counterparts. Indian Business is expected to be one of the most important players in the retail market. Since India is a developing nation, it is still not prepared for it. And, they are leaving no stone unturned to become the best in retail Industry. The paper examines the current scenario of retail market and customer perception of online market.