Online retail business continues to grow at an impressive rate of more than 20 percent per annum (Marketline report, 2015), with the revenue of $ 996.8 billion in 2015, and expected to reach $2014 billion by 2019 (an increase of more than 100 percent). The phenomena that world is fast shrinking into a Global Village because of Internet and other communication mediums. Internet has brought nearly the entire world just a click away from us. The retail industry canvass has been repainted by Internet and the rules of the game in retailing are fast changing. There were six major incentives for the firms to adopt Internet retailing, including improving internal communication, improving operational efficiency, facing competition, enhancing customer services, reaching out to a wider audience, and improving relation with suppliers. Online sales in India are still tiny, at $16billion last year, but the country is the world’s fatest –growing e-commerce market and is prized by America’s and China’s internet titans. This paper deals with the challenges and opportunities online retailing and future of internet retailing in India.