The study conducted on a random sample of 100 students selected from two universities viz; Dr. Y.S. Parmar university of Horticulture & Forestry, Solan and Himachal Pradesh University, Shimla (H.P.) revealed that a majority of the respondents had Internet access, and used on-line shopping for purchasing books, clothes, mobile/camera and software. Economic, convenience in use and coupon/discount facilities etc. were the main reasons for on-line shopping. Insecurity/unsafety of payment, slow delivery of products, high shipping costs and low level of trust in the products were the main problems faced by them in on-line shopping. Though overall 54 percent of respondents were satisfied with the on-line shopping yet only 30 percent of them were found satisfied with warranty policies of the companies engaged in on-line shopping for the customers. Hence, the study implies that the companies concerned should ensure safety of payment and timely delivery of their products besides quality assurance for further promoting On-line shopping among the customers.