Electronic commerce in Ethiopia is an industry that is still in its early stage of development. This thesis will focus on evaluating the development of B2C (Business-to-Consumer) e-commerce in Ethiopia. It will look at the current status of B2C e-commerce within the country so that the challenges and obstacles towards the growth of B2C electronic commerce can be identified. Thus, the purpose of this study is to evaluate the status of B2C e-commerce-the limitations, problems and hindrances faced in implementing B2C e-commerce in Ethiopia.More specifically, it will also evaluate the market (ie. the perception of the community towards B2C e-commerce) in an attempt to evaluate its attractiveness from a consumer perspective. The thesis will also look at the challenges that existing B2C e-commerce businesses face in adopting electronic commerce and identify factors that are a hindrance to its development. Investigating the development of B2C e-commerce from the business as well as from the consumers point of view, allows for the research to more effectively analyze the national readiness of Ethiopia to embrace B2C e-commerce which can be useful for entrepreneurs considering entering the market as it can help them assess the market conditions. Thus, the study aims to make suggestions that can help entrepreneurs who are interested in entering the industry in their planning strategy as well as makes recommendations on what needs to be done to facilitate the growth of B2C e-commerce.Both primary and secondary data were used to clarify where B2C e-commerce development in the country currently stands, with the focus being the capital city, Addis Ababa. A questionnaire method was used to obtain primary data from the market and from existing e-commerce businesses in Ethiopia. To complement this data, secondary data has been used to evaluate the status of various factors affecting e-commerce development.From the findings we can conclude that there are various factors relating to the development of B2C e-commerce that need much attention in Ethiopia. The research has identified8main limitations or hindrances to the development of B2C e-commerce in Ethiopia. Mainly these findings are:poor telecommunication infrastructure; poor bank infrastructures; consumer perception or mindset towards e-commerce, e-banking, and telecommunication services; security and trust issues; lack of government regulations and policies pertaining to e-commerce; unpreparedness of consumers in terms of their awareness of B2C e-commerce; and a lack of online payment systems. From this study, we can fairly conclude that, as things currently stand, Ethiopia is unprepared to embrace and fully implement B2C e-commerce. However, since the intensity of competition in the industry is low and it is still an untouched territory, with some focus given to addressing these challenges and hindrances, B2C e-commerce in Ethiopia can become more attractive.