The purpose of this study is to develop a multi-dimensional scale measuring consumers’ perceived challenge in shopping fashion products online, and to verify its validity and reliability. Relevant literature is first reviewed to identify possible dimensions of perceived challenge. Next, Study 1 is conducted in order to explore the dimensions empirically and to see whether the dimensions that emerged were consistent with prior findings. A total of 190 responses to an open-ended question was qualitatively analyzed by using content analysis. The findings of Study 1 generate 26 items reflecting four dimensions (i.e., product knowledge, previous experience, website functionality, and product availability), which correspond to the dimensions suggested in literature review. Study 2 is subsequently conducted to refine the items so that the perceived challenge scale establishes cross-validation, convergent validity, discriminant validity, reliability, and predictive validity. A total of 238 responses is quantitatively analyzed by using exploratory factor analysis, confirmatory factor analysis, and structural equation modeling. In the results of Study 2, the perceived challenge scale is found to consist of a total of 16 items reflecting three dimensions: E-commerce Challenge (corresponding to Previous Experience reported in Study 1), Retailer Challenge (corresponding to Website Functionality), and Product Challenge (corresponding to Product Knowledge); all Product Availability items have been eliminated through the item refinement process. Specifically, E-commerce Challenge and Retailer Challenge are found to predict flow, supporting flow theory, while Product Challenge fails to lead to flow significantly. Implications, limitations, and suggestions for future studies are also discussed.