The research undertaken for this thesis identifies the benefits, challenges and success factors of electronic commerce in Australian companies. This research was conducted in four phases: literature review; semi-structured interviews with seven well-established companies located in Melbourne and Sydney; postal questionnaire survey of top 500 Australian companies; data analysis and findings. This research identified and described the considerable benefits that companies engaged in electronic commerce have achieved. The major benefits of electronic commerce identified included improved image, competitive advantage, business efficiency, increased automation of processes and customer loyalty.