The internet led the evolution of e-commerce and has now become a key component of many organizations in daily business operations. Evolution of e-commerce started since the 1960s by the introduction of Electronic Data Interchange (EDI), followed by the emergent of the online market in 1980s. The web browser was coming at the year 1990s and by the year 2000 the term e-commerce been to use extensively when more people start the online business. There are several ways to conceptualize the activities of e-commerce system from the view of knowledge management aspects. Knowledge management is an essential part of the system's capabilities. This paper will discuss the e-commerce challenges and Malaysia's achievement on it before the list of suggestions to boost the e-commerce through the Knowledge Management perspective.