Electronic business refers to the use of Internet for doing business. Rush to E-Business sites attitude affects the quality of such sites in many ways. The increase of popularity of the e business sites are creating challenges everyday for the service provider. For developing an extensive E-Business model we have to analyze the various performance affecting issues and E-Business essentials. The primary aim of this paper is to discuss the issues which are affecting the quality of e business sites. Among that some of the major issues are scalability and security. Scalability is one of the important issue because, the lack of resource allocation leads to the loss of potential customer that will lead to the revenue loss of a particular concern. On the other side security issue creates bad image to the whole business that’s why trust building is an important target of every concern with proper security mechanism. In this paper we are trying to present the various methodologies involved in sorting out these issues and the future directions towards building most effective E-Business model.