With the emergence of £-Commerce, the businesses of many retailers are severely affected whether it's a large or small. The turnover and the profits of overall retail business in India are reflected on the various researches made in this context. £-Commerce has been flourished throughout the country and from just a mere click in computer or smart phones the orders are placed by the consumers from their homes. As the e-commerce i.v .severely affecting the retail business, the large retail houses are capable to adopt the online marketing channels to advertise and sell their products. But till now no emphasis has been given to the small businesses, neither by the business association nor by the government to in encourage the small businesses to be a part of E-Commerce. It is important to bring infront of the society and the government regarding the various challenges faced by the small businesses to be a part e-commerce. This paper in an attempt to find out the whether the e-commerce or online-marketing affects all types of small businesses. Even after knowing that this e-commerce is affecting their buYinesses but still many businesses don't want to be a part of e-commerce and many of them are unable to being a part of that. Hence this paper also represents a picture of various challenges faced by the small businessmen in using the online marketing channel for their businesses.