Internet as a communicative medium eases people to do online trading business. The network connection is easily accessible to the community. There are problems in the transactions through social media when sellers commit fraud in transactions and mismatch the goods and/or services. In addition, the hidden defects in the selling goods can be the biggest modus operandi of online sellers, both intentional and unintentional. Based on the problems above, the authors are interested in analyzing the application of Islamic business ethics in the online sell and purchase transactions. The purpose of this study is to examine the implementation of business ethics in e-commerce, especially in the rapid development of e-commerce in Indonesia, and to find out the importance of managing ethical issues. The results show that e-commerce businesses in Indonesia recorded a sales volume growth of 71.5 million average visits per month in the first quarter of 2020 and increased to 93.4 million average visits per month in the second quarter of the same year. The decrease in the number of online fraud reports per year, in 2019 as many as 1,600 cases and in 2020 down to 650 cases. From these results, it is hoped that practitioners will be able to apply higher standards of business ethics in e-commerce activities to protect and maintain e-commerce industry for improving the welfare of Indonesian citizen.