E-commerce solutions in supply chain management have often been approached from variousrndimensions focusing on the overall role on efficiency, customer service and responsiveness.rnApplication of ecommerce solutions has seen improvements in different ecommerce models likernBusiness to Business, Business to Consumers, Consumers to Consumers, and Government tornBusiness ecommerce models. However, many sectors of the service delivery or retail sectors inrndeveloping countries didnâ€™t adopt any of the models and this could be attributed to theirrnineffective and inefficient performance. There exists a research gap on this area of the role ofrnecommerce application on supply chain performance in list developing countries like Ethiopia.rnThe study employed a descriptive and explanatory research designs. The population comprisedrnof 539 online shops doing business on four selected online retail shop platforms which werern22Bole.com, Qefira.com, Merkatoonline.shop and sholamart.com. Random sampling techniquesrnwas applied to choose the respondent for the questionnaire from the population after the selectedrnplatform population divided in to the appropriate strata and a proportionate sampling was takenrnfrom each to represent all the strata. 230 online shops were found to be the appropriate samplernsize to match the population size of 539 shops. Descriptive statistics was used to identify the rolernof ecommerce on supply chain performance and to state other variables. Correlation andrnRegression analysis approaches were used to investigate the relationships between the variablesrnand the extent to which the independent variables explained supply chain performance. Findingsrnshow that there is a significant positive relation between ecommerce application and supplyrnchain performance of the online retail shops. Application of ecommerce found to play significantrnrole in efficiency, responsiveness, flexibility and customer service. Profitability and reliabilityrnwere not found to be significantly related to the application of ecommerce. Perceived usefulnessrnand perceived ease of use were found to be the triggering factors at higher level for the adoptionrnof ecommerce. Therefore online retail shops and platforms need to invest much more onrnecommerce applications to benefit and have better supply chain performance especially in thernareas of information flow, material flow and financial flow of the supply chain. The governmentrnand other stake holders need to work more on ecommerce development to improve supply chainrnperformances. Finally it is recommended that universities and research institutes to do morerndetailed researches to assess the status and benefit of ecommerce in many different aspects.