Impact of Marketing & E-commerce Growth on Traditional Supply Chain Models and Logistics Networks: A Quantitative Study

The rapid growth of e-commerce and digital marketing is reshaping traditional supply chain models, prompting shifts in distribution network design, fulfillment strategies, and logistics cost structures. While previous studies have explored digital transformation in isolation, there is limited quantitative evidence on how these changes jointly influence operational performance and cost trade-offs. This study examines the quantitative impact of e-commerce growth and marketing investment on supply chain configuration, fulfillment practices, and key logistics performance metrics, with a focus on identifying causal relationships and moderating factors. A panel dataset of 15 firms was analysed, incorporating firm-year observations of e-commerce sales share, digital marketing spends, campaign frequency, distribution centre density, micro-fulfillment adoption, order cycle time, OTIF (on-time, in-full) performance, last-mile cost share, and transportation cost per unit. Descriptive statistics, Pearson correlations, and panel regression models with mediators (digital integration) and moderators (product volumetrics) were employed to identify direct and indirect effects. Higher e-commerce sales share significantly increased DC density (β = 0.008, p < 0.001) and micro-fulfillment adoption (β = 1.12, p < 0.001), while reducing order cycle time (β = –0.045, p < 0.001). Marketing spend improved OTIF (β = 0.12, p < 0.05) and shortened order cycles. However, e-commerce share was associated with higher last-mile cost share (β = 0.18, p < 0.001) and transportation cost per unit (β = 0.045, p < 0.001). Digital integration consistently enhanced network and performance outcomes, while product volumetrics amplified transportation cost effects. E-commerce and marketing-driven growth are catalysts for structural supply chain transformation, delivering faster fulfillment and higher service levels but increasing last-mile and transport costs. Digital integration mitigates some cost pressures, while product characteristics shape cost impacts. Strategic alignment between marketing and operations is essential for sustainable competitive advantage in the digital commerce era.