E-commerce has had a great influence on the companies as part of the development of ebusinessa few decades ago. The development in Sweden has brought both - pros and cons ofentrepreneurship in terms of competition and distribution which gives rise to new enterprise.Today, e-commerce is an important service order to gain more customers with a greater rangeof products, but it has proven that this new system has brought new waves of problems anddifficulties in different fields of enterprise. With e-commerce, companies have met newchallenges and conditions of trade. Based on this, the purpose of the paper to illustrate therapid growth of e-commerce in Sweden, flow chain of implementing e-commerce and itsimpact on businesses. The questions chosen for the paper is:”How has e-commercedeveloped in Sweden and how has e-commerce affected the business in Sweden?” To answerthe questions, a qualitative research method was carried out. This approach consists ofdocuments and interviews. The time period was between 1996 and 2015. The amountexamination of documents was about 5200 pages and interviews were held via phone and hada time interval consisting of 30-60 minutes. The result of the study shows that there are threemain reasons for the development of e-commerce in Sweden. These are the technicalmaternity of consumers and enterprises. Competition is about improvements in the qualityand range of services that enterprises offers and alternatives within distributions are the keyof success, removing the third-party logistics is an improvement of a mature e-commerceenterprise.