E-commerce has been disrupting the retail marketplace with its rapid growth in India over the past few years. Multiple socio-economic factors, including the Digital India initiative, the transition towards a cashless economy, and the rise in consumer electronics and internet users, were crucial in creating a shift in consumer perceptions favouring e-commerce. One of the hidden consequences of e-commerce acceptance is the rising packaging plastic problem. It has typically employed unwanted secondary and tertiary packaging, often considered necessary for transportation. E-commerce has also given rise to multiple shopping instances, which were previously non-existent and thus contributed to excessive packaging plastic waste. However, until recently, the e-commerce sector in India has managed to escape the shackles of the plastic waste management legislation and was considered a free rider. This study aims to investigate the key factors aiding the growth of the e-commerce sector, the packaging plastic problems amplified by the e-commerce sector, the legislative backdrop, and a case study on how various e-commerce platforms have adapted to the changing policy landscapes. A multi-faceted solution integrating optimisations at the pre-shipping, post-shipping and legislative framework levels is proposed. The recommendation from this study can trigger a transformative change in reducing the packaging plastic waste generation and creating a sustainable e-commerce industry in the country.