Online transactions has given rise to dispute and this has brought about the need to settle dispute efficiently and effectively over the internet. Internet complexity, length of time and expensive cost of civil litigation have over time discourages aggrieved parties in online business transaction from so. There was need that an alternative dispute resolution be in place to settle this dispute in a swift and more efficient way. The e-commerce however became a reason for what is now called online dispute resolution. It must however be noted that the online dispute resolution mechanism such as online mediation has not replaced the traditional face to face mediation rather it only consolidates the process by which disputes are settled. It has successfully utilized the advantages of technology by maximizing time, distance, cost of dispute settlement and other advantages which would later be discussed in this paper.