Small and medium-sized enterprises in Kano State encounter difficulties in effective online commerce implementation despite the fundamental role that online sales platforms play in business expansion. The current research evaluates the penetration rate of SMEs who use online selling platforms and evaluates market expansion and revenue gains while identifying obstacles for online adoption. The online sales potential for Kano State SMEs remains limited because they encounter multiple hurdles, including insufficient digital capabilities when paired with deficient internet networks and security threats along with high operational expenditures. The research utilized a qualitative conceptual framework based on peer-reviewed journals and reports as well as other scholarly publications. The research based its analysis on a systematic literature review which focused on existing information about SME digital transformation and e-commerce adoption along with their economic impact. SMEs achieve substantial market growth, and larger customer base and increased revenues through their implementation of online selling platforms. Divergent profitability levels continue to trouble businesses because of transaction fees, together with digital marketing costs that compete with large e-commerce platforms. The principal drivers behind SMEs adopting online sales stem from supportive digital policies of governments combined with rising smartphone usage and the availability of FinTech payment methods. The study advises the government to implement digital literacy initiatives and improve connectivity, and offer financial benefits to SMEs for better participation in the digital economy. Online business operations require a strong logistics infrastructure in addition to favorable transaction fees for SMEs as well as strict cybersecurity measures to guarantee long-term sustainable digital operations. The resolution of these obstacles will enable Kano State’s SMEs to make successful use of online sales channels for improved economic growth and market competitiveness, and stronger national economic impact.