Digital transformation leads to progres sin business processes and in the business of all companies that are affected by digitalization. The ultimate goal of digitalization is for companies to be able to improve their business by introducing various innovations to become competitive and survive in a market that is changing daily under influence of new technologies. In addition to all the benefits that e-commerce brings to consumers, there are also risks and siadvantages that they face but very quickly such problems are solved precisely because digital commerce is considered the main economic driver in the future. The digital transformation is increasingly affecting many aspects of the world economy – stimulating economic growth and affecting international trade. Digitalization changes the way people do business, habits and increases the availability of services and products. E-commerce means any financial transaction that is executed electronically. The topic of this paper is to explain the definition of trade, then e-business -what are the advantages and what are the disadvantages. How e-commerce is developed in the Republic of Croatia and how digital transformation should be introduced in organizations and among employees. The development of technology also affects the development of trade business. Customer needs are constantly increasing and businesses are trying to meet those needs. In recent years there has been a sharp rise in the popularity and importance of e-commerce. The Internet and nre technologies have saved time and space for all individuals and all organizations, blurring boundaries – services and products are within reach of a hand.