The main challenges of e-commerce are to attract customers and maintain a good relationship with existing customer as user only interact with electronic device. Therefore designing a good and usable website is the most crucial part to succeed in this highly competitive environment. The objectives of this study are to evaluate C2C e-commerce website usability and to study problems faced by potential customer in process of purchasing online. In this study, a number of university students were asked to evaluate the usability of two Malaysian C2C websites. Two local websites were chosen, one is a prominent website and the other one is randomly picked from the internet. A framework for evaluating e-commerce usability was implemented in this study. The website is rated based on criteria of system quality, information quality, service quality and attractiveness. Users need to complete a number of tasks on the websites and think- aloud was encouraged during the evaluation process. Results show a number of usability issues encountered by users while completing the task given. From these findings, e-commerce developers may look at the issues seriously before designing their e-commerce website. © 2010 IEEE.