The purpose of this thesis is to analyse and examine e-commerce as an economic market and its impact on the economy and consumers. The objective is to define the basic notion of e-commerce and the major features included in the term. E-commerce is one of the, if not the largest and most diversified markets in the world, so this paper will put focus on the Business to consumer type of e-commerce and conduct most research on it. Starting with the basic definition of the term electronic commerce and briefly running through the history of its development from the early stages, moving on to explaining the basic types of e-commerce, this paper will thoroughly examine the B2C sector. The economic impact e-commerce has left on the economy will be looked into as well as how it affected consumer behavior. The most notable business models of e-commerce will be explained and analysed with all benefits and drawbacks. Looking through the eyes of the retailer all the advantages and disadvantages of e-commerce will be described. Finally, key economic metrics, which are crucial for running an e-commerce business and keeping it healthy and profitably, will be explained.