E-commerce is today a very attractive market with growth prospects and opportunities for new companies to establish themselves and start operations. Since the establishment of Internet and the evolution of how Internet is used today, there has been an increasing possibility for consumer’s to buy products online. The more expanding E-commerce business today makes companies and entrepenuers eager to establish markets online. There is though a opportunity with the expanding of E-commerce today and that is for companies to investigate how consumer’s values the risks of shopping online. This opportunity is something that companies should take in care before starting an E-commerce market.

This study aims to identify consumers' perceived risk in purchasing decisions in relation to E-commerce. The study is intended to give a broader perspective to be helpful for companies who are in business with e-commerce or supposed to conduct and begin sales activities through Ecommerce. This will be achieved by showing which factors consumers find to be most affecting to their uncertainty and risk when buying online.

The survey methodology used in this study was a quantitative method where we deduced hypotheses to ensure on previous research and theories that the results of our investigation was consistent with what we concuded in our study.

To come up with the answers we received, we used questionnaires in which respondents were asked to answer on a seven-point scale how they felt the risk of shopping online today. The results of this study shows us that consumer’s perceived risk will grow if the purchase is of an high engagement product, we can also conclude that there will be a decline in perceived risk if the websites have good design, user friendly navigation, clear information about consumer’s warranty and right of return.