diff --git a/lms/djangoapps/commerce/management/__init__.py b/lms/djangoapps/commerce/management/__init__.py
new file mode 100644
index 0000000000..c668187b6e
--- /dev/null
+++ b/lms/djangoapps/commerce/management/__init__.py
@@ -0,0 +1,3 @@
+"""
+Management commands related to commerce configuration.
+"""
diff --git a/lms/djangoapps/commerce/management/commands/__init__.py b/lms/djangoapps/commerce/management/commands/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/lms/djangoapps/commerce/management/commands/configure_commerce.py b/lms/djangoapps/commerce/management/commands/configure_commerce.py
new file mode 100644
index 0000000000..86b9310091
--- /dev/null
+++ b/lms/djangoapps/commerce/management/commands/configure_commerce.py
@@ -0,0 +1,68 @@
+"""
+Command for managing commerce configuration for lms.
+We can use this command to enable/disable commerce configuration or disable checkout to E-Commerce service.
+"""
+
+from __future__ import unicode_literals
+import logging
+
+from django.core.management import BaseCommand
+
+from commerce.models import CommerceConfiguration
+
+logger = logging.getLogger(__name__)  # pylint: disable=invalid-name
+
+
+class Command(BaseCommand):
+    """
+    Command to enable or disable commerce configuration.
+
+    Positional Arguments:
+        This command does not take any positional argument.
+
+    Optional Arguments:
+        disable (bool):    if True then disable configuration, enable otherwise
+        checkout_on_ecommerce (bool): Enable E-Commerce checkout if True, disable otherwise.
+    """
+    help = 'Enable/Disable commerce configuration, including configuration of E-Commerce checkout.'
+
+    def add_arguments(self, parser):
+        parser.add_argument('--disable-checkout-on-ecommerce',
+                            dest='checkout_on_ecommerce',
+                            action='store_false',
+                            default=True,
+                            help='Do not checkout to E-Commerce even when configuration is enabled.')
+        parser.add_argument('--disable',
+                            dest='disable',
+                            action='store_true',
+                            default=False,
+                            help='Disable existing E-Commerce configuration.')
+
+    def handle(self, *args, **options):
+        """
+        Create a new commerce configuration or update an existing one according to the command line arguments.
+
+        args:
+            This command does not take any positional argument.
+
+        options:
+            disable (bool):    if True then disable configuration, enable otherwise
+            checkout_on_ecommerce (bool): Enable E-Commerce checkout if True, disable otherwise.
+        """
+        disable = options.get('disable')
+        checkout_on_ecommerce = options.get('checkout_on_ecommerce')
+
+        # We are keeping id=1, because as of now, there are only one commerce configuration for the system.
+        CommerceConfiguration.objects.update_or_create(  # pylint: disable=no-member
+            id=1,
+            defaults={
+                'enabled': not disable,
+                'checkout_on_ecommerce_service': checkout_on_ecommerce,
+            }
+        )
+        logger.info(
+            'Commerce Configuration {configuration_status} with checkout on ecommerce {checkout_status}.'.format(
+                configuration_status="disabled" if disable else "enabled",
+                checkout_status="enabled" if checkout_on_ecommerce else "disabled",
+            ),
+        )
diff --git a/lms/djangoapps/commerce/management/commands/tests/__init__.py b/lms/djangoapps/commerce/management/commands/tests/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/lms/djangoapps/commerce/management/commands/tests/test_configure_commerce.py b/lms/djangoapps/commerce/management/commands/tests/test_configure_commerce.py
new file mode 100644
index 0000000000..a3800314c4
--- /dev/null
+++ b/lms/djangoapps/commerce/management/commands/tests/test_configure_commerce.py
@@ -0,0 +1,58 @@
+"""
+Tests for management command for enabling commerce configuration.
+"""
+from django.test import TestCase
+from django.core.management import call_command
+
+from commerce.models import CommerceConfiguration
+
+
+class TestCommerceConfigurationCommand(TestCase):
+    """
+    Test django management command for enabling commerce configuration.
+    """
+    def test_commerce_configuration(self):
+        """
+        Test that commerce configuration is created properly.
+        """
+        call_command(
+            "configure_commerce",
+        )
+
+        # Verify commerce configuration is enabled with appropriate values
+        commerce_configuration = CommerceConfiguration.current()
+
+        self.assertTrue(commerce_configuration.enabled)
+        self.assertTrue(commerce_configuration.checkout_on_ecommerce_service)
+        self.assertEqual(commerce_configuration.single_course_checkout_page, "/basket/single-item/")
+        self.assertEqual(commerce_configuration.cache_ttl, 0)
+
+        # Verify commerce configuration can be disabled from command
+        call_command(
+            "configure_commerce",
+            '--disable',
+        )
+
+        commerce_configuration = CommerceConfiguration.current()
+        self.assertFalse(commerce_configuration.enabled)
+
+        # Verify commerce configuration can be disabled from command
+        call_command(
+            "configure_commerce",
+            '--disable-checkout-on-ecommerce',
+        )
+
+        commerce_configuration = CommerceConfiguration.current()
+        self.assertFalse(commerce_configuration.checkout_on_ecommerce_service)
+
+    def test_site_associated_commerce_configuration(self):
+        """
+        This test is added here to fail when site_id field is added.
+
+        This is done to make sure that this command gets updated once site_id field is added to
+        CommerceConfiguration model.
+        """
+        self.assertFalse(
+            hasattr(CommerceConfiguration, "site"),
+            "Update configure_commerce command to account for site specific configurations.",
+        )