Abstract: The prosperity and development of rural E-commerce encourages local governments to constantly construct institutional content of rural E-commerce, providing institutional support for the sustainable development of rural E-commerce. Based on collective action theory and several E-commerce villages as examples, this paper studies the content, operation mechanism, and institutional dilemma of rural E-commerce institutional supply by case analysis method and discussed the innovative path of rural E-commerce institutional supply. Results show that the institutional content of rural E-commerce is constructed in two ways: bottom-up and top-down to realize the purposes of motivating endogenous forces and constructing long-term mechanism and further to operate in two forms: external supply type and sinking public goods type, providing institutional foundation for the operation of rural E-commerce. However, rural E-commerce system supply still faces some challenges, including the informal incentive mechanism, the risk of competition, out-of-control of the capital, and unbalanced E-commerce capital resource with more interest on demand side. Therefore, to provide economic foundation and institutional support for rural vitalization, this paper suggests that local governments need to carry out some path innovations, including standardizing the mechanism of stimulating rural E-commerce development, making public service content accurate and localized, and constructing risk prevention and sheltering mechanism.