E– Commerce now has a dominant place in Indian business transactions. With spurt and sudden growth of 4G technology in India, there has been a sudden rise of e commerce transactions in India. The situation of Covid-19 & stringent lockdowns have also played a very significant role in rapid expansion of e commerce transactions in India. E commerce business houses have become an imminent threat to existing or traditional brick and mortar business units. The cut throat competition by way of significant discounts, rebates offered by e commerce businesses have eaten out the profits and the revenue of the traditional ways of businesses. The present paper analyses the present status of e commerce in India, the challenges being faced by these business units and way forward to overcome these challenges.