# E-commerce and digital marketplaces: Value chain, from upstream to the customer

Online marketplaces and apps linking sellers, payments, warehouses and delivery fleets

Source page: https://www.materialinsights.org/industries/ecommerce/value-chain/

#### Value chain, from upstream to the customer
**Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **Digital infrastructureCloud and hosting providers**4 · Critical

Rent compute, storage, content delivery and databases to marketplaces and online shops, scaling capacity for sale peaks.^[4](https://www.crnasia.com/news-network/2026/cloud-market-share-q1-2026-aws-microsoft-google-battling-in-ai-era)
**Why critical:** Three hyperscalers (AWS 28%, Microsoft 21%, Google 14%) held about 63% of the world cloud infrastructure market in early 2026, so one outage can take down many storefronts at once and migrations take months. Technologies Elastic cloud compute Content delivery networks Managed databases Edge caching DDoS protection Depends on Commodities [Cu Copper](https://www.materialinsights.org/commodities/copper/)[H₂O Water](https://www.materialinsights.org/commodities/water/) Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)[Telecommunications](https://www.materialinsights.org/industries/telecom/)**Examples:** Amazon Web Services, Microsoft Azure, Google Cloud, Yotta Data Services

**E-commerce software and SaaS enablers**2 · Supporting

Sell storefront builders, order and inventory management, multi-channel listing and analytics tools to brands and sellers.
**Why supporting:** Many competing vendors exist and sellers can migrate a storefront within weeks. Technologies Hosted storefronts Order management systems Marketplace integration APIs Recommendation and search engines Depends on Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** Shopify, Salesforce Commerce Cloud, Unicommerce  Stage 2 **Merchandise supplyBrands, manufacturers and third-party sellers**1 · Commodity service

Make or source the goods, list them on marketplaces or their own sites, and set prices, stock and promotions.
**Why commodity service:** Millions of sellers compete on large platforms, so any one seller is easily replaced. Technologies Catalogue and image tools Dynamic pricing Direct-to-consumer websites Seller analytics Depends on Commodities [Ct Cotton](https://www.materialinsights.org/commodities/cotton/) Chemicals [PP Polypropylene](https://www.materialinsights.org/chemicals/polypropylene/)[PET PET resin](https://www.materialinsights.org/chemicals/pet/)[PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/) Energy [EmE Embodied energy trade](https://www.materialinsights.org/energy/e_embodied/) Industries [Apparel and footwear](https://www.materialinsights.org/industries/apparel/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)[Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)**Examples:** Hindustan Unilever, boAt, Xiaomi, Nike

**Wholesalers and B2B distributors**2 · Supporting

Buy in bulk from brands and resell to online sellers, kiranas and dark stores, often with trade credit.
**Why supporting:** Distribution is fragmented with many regional players, so supply can be re-routed within weeks. Technologies B2B ordering apps Warehouse management systems Trade credit scoring Depends on Energy [ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/) Industries [Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Udaan, Jumbotail, Metro Cash and Carry, Sysco  Stage 3 **Demand, payments and creditSearch, social and retail advertising platforms**4 · Critical

Sell ads and sponsored listings that bring shoppers to products, and measure which spend leads to sales.
**Why critical:** A few global platforms control most digital ad inventory, so changes in their pricing or privacy rules shift customer acquisition costs for every seller. Technologies Search and social ad auctions Retail media on marketplaces Attribution analytics AI-generated ad creative Depends on Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[AI and digital platforms](https://www.materialinsights.org/industries/ai_platforms/)[Media and entertainment](https://www.materialinsights.org/industries/media_entertainment/)**Examples:** Google, Meta, Amazon Ads, InMobi

**Payment networks, gateways and consumer lenders**4 · Critical

Move money from buyer to seller through cards, wallets and UPI, settle with merchants, handle refunds, and lend through EMI and buy-now-pay-later.^[3](https://ddindia.co.in/2026/10/upi-transactions-surge-23-to-24-07-billion-in-september-npci/)
**Why critical:** In India one rail, UPI, carries most online payments (24.07 billion transactions in September 2026), so an outage stalls checkout everywhere. Technologies Real-time payment rails (UPI) Card networks and tokenisation Payment gateways Fraud scoring Buy-now-pay-later underwriting Depends on Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** NPCI (UPI), Visa, Mastercard, Razorpay, PayPal  Stage 4 **FulfilmentFulfilment centre and dark-store operators**3 · Important

Store inventory close to buyers, pick and pack orders, and in quick commerce run small urban dark stores that turn orders in minutes.^[2](https://www.bain.com/insights/how-india-shops-online-2026/)
**Why important:** Several 3PLs and platform-owned networks exist, but building a new fulfilment network takes many months and suitable urban sites are scarce. Technologies Warehouse management systems Conveyor and sortation systems Goods-to-person robots Demand forecasting Dark-store slotting Depends on Commodities [St Steel](https://www.materialinsights.org/commodities/steel/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[PCM Latent heat and cold storage](https://www.materialinsights.org/energy/e_latent_heat/)[LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/) Industries [Real estate](https://www.materialinsights.org/industries/real_estate/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Amazon Fulfillment, Flipkart (Ekart warehousing), Blinkit, Zepto · Quick commerce was 16-17% of India e-retail GMV in 2025^[2](https://www.bain.com/insights/how-india-shops-online-2026/)

**Shipping packaging suppliers**1 · Commodity service

Supply corrugated boxes, mailers, tape and void fill that protect orders in transit.
**Why commodity service:** Packaging is widely available from many converters and can be resourced within days. Technologies Corrugated board converting Right-sized box automation Recyclable paper mailers Depends on Commodities [Tm Timber](https://www.materialinsights.org/commodities/lumber/) Chemicals [Str Starch and cellulose derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/) Industries [Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)**Examples:** Smurfit Westrock, International Paper, TCPL Packaging  Stage 5 **DeliveryParcel, express and last-mile carriers**3 · Important

Move parcels between hubs and deliver them to homes, collect cash on delivery and handle returns, often with gig riders.
**Why important:** Several national carriers and platform fleets compete, but moving volume between them takes months of integration and capacity planning. Technologies Hub sortation Route optimisation Rider apps and proof of delivery Electric two- and three-wheelers Depends on Commodities [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Li Lithium](https://www.materialinsights.org/commodities/lithium/) Energy [ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[EV Electric and hybrid vehicles](https://www.materialinsights.org/energy/e_evs/)[Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)**Examples:** Delhivery, Ekart, Shadowfax, UPS  Stage 6 **Customer-facing platformsOnline marketplaces and quick-commerce apps**4 · Critical

Run the app or site where shoppers search, compare and buy, take a commission and ad fees from sellers, and coordinate fulfilment and delivery.^[2](https://www.bain.com/insights/how-india-shops-online-2026/)
**Why critical:** In most large markets two or three platforms carry most online orders, so a delisted seller loses most of its online sales overnight, though own websites, social commerce and quick-commerce apps give partial alternatives. Technologies Search and recommendation engines Conversational shopping assistants Seller marketplaces and ratings Fraud and returns management Logistics orchestration Depends on Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)**Examples:** Amazon, Alibaba, Flipkart, Meesho, Blinkit

## Other sections

- [Overview](https://www.materialinsights.org/industries/ecommerce/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/ecommerce/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/ecommerce/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/ecommerce/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/ecommerce/linked-industries/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/ecommerce/materials/index.md)
- [Chokepoints and risks](https://www.materialinsights.org/industries/ecommerce/risks/index.md)
- [Sources](https://www.materialinsights.org/industries/ecommerce/sources/index.md)