E-commerce or electronic commerce has been growing rapidly in the past few decades and advancements in smartphones and computers has only boosted them further. With the large volume of orders and the dynamic environment surrounding it, there is a need of proper inventory management. The key to effective inventory management is having the appropriate inventory on hand at the appropriate time, in the appropriate quantity, and at the appropriate location and price.Creating an efficient ecommerce inventory management system is one of the most important aspects of running a successful business. Inventory management entails warehousing, delivery, stocking of various goods in such a way that its cost effective and at the same time provides a seamless experience for the customer. The advancement of inventory management is highly upgraded with the help of high technologies, artificial intelligence and the proper data software which is driven by the need for greater efficiency and accuracy. In this paper we have tried to review the selected literature on the use of various methods such as VMI in inventory management and warehousing.We have also analysed the efficiency of various processes that have been used during various parts of the supply chain in e-commerce. The paper also focuses on the various problems that exist in the inventory management as well as supply chain logistics and tries to review the same.