Abstract: The fast development of rural e-commerce can increase farmers’ income level effectively. However, under heterogeneous conditions, analyzing the specific impacts of rural e-commerce on the income of farmers has great significance for regulating the development of rural e-commerce and formulating accurate support policies. Based on a survey data of households in Dongying City of Shandong Province, this paper uses the propensity score matching method (PSM) to analyze the impacts of rural E-commerce on farmers’ income. Meanwhile, it also analyzes the growth effect and distribution effect of rural e-commerce on farmers’ income. Results show that the development of rural e-commerce has increased the enthusiasm of farmers to participate in e-commerce, reducing the cost of agricultural product distribution, and significantly increasing farmers’ income. Firstly, for farmers in traditional agricultural areas, developing e-commerce infrastructure and establishing brands of family farms and agricultural products have significant impacts on farmers’ income and have very limited impacts on industrial economy developed areas. Secondly, the construction of rural e-commerce infrastructure and the branding of agricultural products are beneficial to the increase of high-income group’s income. Participating in e-commerce and obtaining government funding have significant influences on increasing the income of farmers who are participate in e-commerce business. In order to increase farmers’ income, this paper suggests: to develop rural e-commerce infrastructure construction, to expand agricultural operation scales efficaciously, and to establish brand awareness of agricultural products. At the same time, the government should provide special financial investment support for e-commerce development.