This conceptual paper specifies that E-commerce has a significant impact on business costs and productivity. E-Commerce has a chance to be widely adopted due to its simple applications. Thus it has a large economic impact. It gives the opportunity for "boundary corossing" as new entrants, business models, and changes in technology erode the berriers that used to separate one industry from another. This increases competition and inovation, which are likely to boost overall economic efficience.