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Electronic mail is perhaps one of the greatest inventions of our lifetime.It is having a phenomenal effect on the way we communicate.E-mail is not just a quick and relatively cheap way to keep in touch with family and friends,it has also become an essential tool in business,a fundamental part of the way in which we work.E-mail with fast speed and low cost can reach global audience and become a useful tool to promote online selling.This paper will mainly discuss e-mail marketing and its good functions on communication with potential or existing customers and other characteristics.Permission based marketing,which has common point with e-mail marketing,is regarded as e-mail marketing to some extend.This paper will further discuss the effective format,effective subject lines and words that can’t be used in e-mail marketing.At last,the problems and prospect of permission based e-mail marketing will also be stated.