ABSTRACT: A decade ago, only two online marketplaces were valued at $1 billion or more in the UnitedStates: eBay and Craigslist (Haigu and Rothman, 2016). During the course of a decade, the popularity andprosperity of e-commerce have evolved. According to the United Nations Conference on Trade andDevelopment, e-commerce sales hit $25.6 trillion globally in 2018, up 8% from 2017 (UNCTAD (UnitedNations Commission on Trade and Development), 2020). Thus, during the COVID-19 pandemic, e-commercebecame not only a preferred choice of shopping but increasingly more lucrative. However, many do notunderstand that there are real financial perils in operating in the cyber business space. To that end, this paperwill explore some of the financial risks associated with e-commerce startups and the various e-commercebusiness models. These risks can range from fraud, cybersecurity, payment transaction, taxation, and insuranceissues. (Toleuuly et. al, 2020). All of which could have varying degrees of impact on the startup. Thus,reviewing these new e-business models and the associated financial risks can make students moreknowledgeable and agile in this brave new world of commerce.

KEYWORDS– E-commerce, Start-ups, Financial Risks, Risk Management, Agile, Strategies