The main focus of this chapter is to identify the behaviors of the consumers and sellers of e-commerce in Bahrain. It also seeks to understand the ethical and legal issues faced by the users of e-commerce and the various reasons for such behavior. The perception of the consumers regarding online retailers discussed through appropriate measures and research data. The chapter clearly explains the historical development of e-commerce in Bahrain and the processes and procedures of setting up an online business in the country. The common legal and ethical issues faced by the consumers discussed in detail and supported by different models to understand user behavior. The research onion method used to gather quantitative and qualitative data. The primary data collected through questionnaires and interviews whereas the secondary data collected through literature. The data analysis shows the results of the mixed method supported by different graphs and models. The different recommendations provided to solve the most prevalent problems confronted by the buyers and the sellers of e-commerce. © 2020, IGI Global. All rights reserved.