Artificial Intelligence has been becoming more and more integrated in the modern lives of people and thus more and more use cases of Artificial Intelligence have been arising. Nowadays, the businesses have been striving to introduce various AI-driven solutions to the systems so as to generate more and more outputs and to minimise their costs and enhance consumer satisfaction level. AI systems mainly are supported by 3 most important aspects that are “data generation”, “domain knowledge” and “machine learning”. In e-commerce businesses, the use of advanced technologies majorly aims to provide better consumer satisfaction and by providing them by customised recommendation of products, conversational user experience, making all touchpoints as efficient as possible and by speeding up after sale customer services. The ecommerce organizations extensively use Explainable Artificial Intelligence (XAI) which is basically a set of methods and processes that enables the humane users to trust and comprehend the outcomes produced AI-driven machine learning algorithms (ML). XAI predominantly help e-commerce businesses as it fosters transparency to the forefront of the business-decisions and also unlock the power of AI and machine learning’s and hence deliver “actionable insights” that tend to unlock true business values. AI can play a significant role in helping the customers to automate repetitive tasks that tend to keep the online store functioning. XAI has the potential to revolutionize e-commerce by making data-driven decision-making more transparent and trustworthy. By providing explanations for automated decisions, XAI can help to improve transparency and accountability, build trust with customers, and improve the accuracy and relevance of automated systems. As e-commerce continues to grow and evolve, businesses that embrace XAI are likely to have a competitive advantage in the marketplace.