E-commerce, though not entirely a new subject area in international trade discourse, is coming to the forefront now given its rapid expansion and the need for governments and the global community at large to look more carefully at the implications of this and to come up with relevant policy measures. This chapter does not purport to build the case for a particular stance by these countries on e-commerce, but rather looks at the potential benefits that could accrue from e-commerce development and at the same time the serious challenges they face, given the constraints that exist, as well as ways to address these. While the focus is on small developing countries, many of the issues covered will be relevant to the larger group of developing countries.