Online dispute resolution is a relatively new area, but it is quickly developing throughout European countries and Russia in particular. Settlements, especially out-of-court settlements are an efficient and cheap way to resolve disputes, but it requires using other alternative dispute resolution methods. For example, mediation proved effective as a stand-alone procedure and as an additional measure to help with peace settlements in courts. Arbitration is another useful alternative dispute resolution forum. Going online makes these methods even more efficient and easier to use and in some cases even leads to resolving disputes without participation of lawyers. The article is an in-depth research of this field, aiming to provide understanding of different forms of online dispute resolution, online mediation and electronic arbitration in particular and legal framework behind these forms of dispute resolution. Uses, strengths and weaknesses of online dispute resolution are being discussed. Some countries already provide necessary legal background for wide array of possibilities in online dispute resolution, while other countries could benefit from changes to legislation. The established European regulations and national legislation are being compared with Russian law; the author researches possible avenues for further advancing online dispute resolution specifically in Russia, and factors that may assist or hinder development of online dispute resolution in Russia considering recent arbitration reform. Online dispute resolution lessens the burden on courts in any country and greatly helps the public as a whole. Part of the article is dedicated to the problem of consumer rights dispute. High cost of court procedure compared to alternative dispute resolution makes it unviable to continue with established Russian trend of keeping consumer disputes in courts. Possible solutions to this problem are being discussed with focus on finding implementable solutions within current legislation framework. This development is necessary to ensure economic growth and investment attractiveness of Russia.