The Internet represents a fundamentally different environment for businesses. It opens up the industry to increased competition and, as a result, reduces the likelihood of businesses retaining customers in the long run. So, it is important to analyze the relationship between customer values and customer retention in order to provide a guideline of successful e-business. The purpose of this paper is to answer the following questions. First, what are key components of customer value in e-business? Second, what influences the relationship between customer value and customer retention? Data collected from 520 effective respondents who made purchases through Internet shop were used to test a research model. Several managerial implications were derived from the analysis and further studies were suggested.