E-commerce's fast growth has revolutionized global trade, making goods and services accessible to more customers across more locations worldwide. However, this expansion has also created environmental concerns: higher carbon emissions, excessive waste production, and resource depletion. Relatively to the specificity of the e-commerce environment it became tremendously significant to use sustainable principles of work and business practices in terms of environmental impact or impact reduction. This review article aims at the analysis of sustainability in the practice of online purchasing, as well as the main measures including the use of renewable energy, the utilization of the environmentally friendly packing materials, as well as carbon offset sharing as the parts of the sustainable supply chain management and carbon offset strategies. This article also demonstrates how digital trade practices shift market structures, consumer conduct and regulation. The paper also presents examples of successful implementation of sustainability initiatives by Amazon and Alibaba; and examples of challenges faced by SMEs that apply similar practices. This review also examines how AI and blockchain, for instance, could help to promote environmentally friendly e-commerce. This article provides the reader with detailed implications for business practice and policy as well as suggestions on how to proceed with any gaps in the literature to achieve future studies. Sustainability doesn’t only decrease the environmental impacts, but it also provides e-commerce companies with the competitive edge since the environment of the business is progressively shifting to the digital platforms.