The rapid growth of e-commerce has significantly transformed traditional supply chain models, introducing new dynamics in logistics, inventory management, and customer service. This study explores the impact of e-commerce on supply chain management (SCM) in Madurai, a tier-2 city in Tamil Nadu, India. With the increasing penetration of internet services and digital literacy, local businesses and consumers in Madurai are increasingly embracing online commerce. This shift has compelled supply chain stakeholders’ retailers, logistics providers, and manufacturers to adapt to faster delivery expectations, real-time inventory systems, and integrated technology solutions. The research, based on primary data collected through surveys and interviews with key players in the local e-commerce ecosystem, reveals that while e-commerce has enhanced operational efficiency and market reach, it also presents challenges such as infrastructure limitations, training gaps, and increased pressure on last-mile delivery systems. The study concludes by offering practical suggestions to improve SCM practices in the region, aiming to support sustainable and scalable e-commerce growth in Madurai.