The basic function of Packaging is to deliver the product up-to the entire consumer without any damage. Packaging and E-commerce are linked with each other. E-commerce is growing rapidly in India. Hence, demand of packaging material and package design and product development is also increasing rapidly. E-commerce packaging involves the use of materials for safe packaging of products sold by the e-commerce industry. E-commerce packaging plays a vital role in the consumers’ perception about the e-retailer. It also indicates the perceived value of the item received. Packaging reflects the value of shipment in the e-commerce supply chain, that is, better the packaging, better the product inside it. The purpose of this paper is to provide a theoretical framework with which to examine to which how packaging is useful for e-commerce. This paper develops a different thought that can be used to elaborate the needs of all e-commerce companies like Amazon, Snap deal, Flip-kart and Shop-clues etc. that relevant to the development of the package design and packaging materials.