This project deals with developing an e-commerce website for Online Bookstore. It provides the user with a catalog of different books organized into categories available for purchase in the store. In order to facilitate online purchase a shopping cart is provided to the user. The payment mode of this system is through M-pesa where a customer receives an invoice through SMS and then pays using M-pesa. After the order has been processed the customer is notified through SMS and when the books will be delivered. Since the customers will not always be shopping for the books the project will also deal with the development of a module within the system to allow users to upload and share non copy written materials for free. The system is implemented using a 3-tier approach, with a backend database, a middle tier of Ruby on Rails and Ozeki SMS Server and a web browser as the front end client. The project objective is to develop a website where a customer can shop for books and pay with M-pesa and upload and share free materials.