In the past decade, there has been a dramatic change in the way consumer have altered their way of shopping. The advent of the internet, accompanied by the growth of related technologies, has created a significant impact on the lives of people around the world. Online shopping offers the customer a wide range of products and services wherein the consumer is able to compare the price quoted by different suppliers and choose the best deal from it. Internet marketing is theoretically different from other marketing channels and internet promotes a one to one communication between the seller and the final user with round the clock customer service. The increasing purchasing power of customers in Kerala is set to bring online shopping boom in Kerala. Almost all big retailers are now electronically present on the World Wide Web. The purpose of this paper is to ascertain the consumer satisfaction and perception about online shopping among the people in Kerala. Samples of 150 online customers are taken for the study. The study reveals that there is tremendous scope for online companies to grow in the near future. They have to focus on the areas such as quality in delivery services, privacy in transaction, ease of payment etc.