Abstract :E-Commerce is the exchange of goods and services with the help of internet. Along with the
popularity of internet, e-commerce was also getting popular in the past. But in the recent years internet is
getting popular because of the use of e-Commerce. The popularity of e-commerce is replacing the conventional
models of commerce in our society. Foot falls to retails shops are declining day by day, and also the mall rentals.
This study focuses on the changes in the traditional pricing concept of Indian retail markets. Fixed price, MRP,
fair profit, etc have been regarded as the ethical behaviour of Indian merchants. But e-commerce is drastically
removing this concept to differential pricing. The study reveals price difference is even more than 200% in
certain areas. Ensuring transparency in differential pricing, e-customers welcomes this pricing. A transparent
mechanism for flexible pricing, including revenue management, negotiation mechanisms, etc transformed into
simple and popular way of price discrimination. Even the public sector enterprises started differential pricing
and there is almost nil opposition to this strategy from the customers. The article, with the help of secondary
data examines the pricing policies for on line marketing with a special emphasis on differential pricing, customer
loyalty and segmentation.