The rise of sustainable e-commerce: how to adapt your business?
While many people are still working remotely or under restrictions to stay home, the pandemic has accelerated the adoption of online shopping around the world.
Euromonitor reports that goods purchased online in 2020 worldwide increased by 24%. In 2021, Euromonitor estimates that 17% of goods will be purchased online, almost double the amount of online sales that occurred just five years ago.
While all of this is good news for businesses that have launched online, it's not such good news for our environment. Indeed, as the popularity of e-commerce increases, so do some of the negative impacts that come with it.
We will detail in this article the effects of e-commerce on the environment and give advices for online merchants to participate in the protection of the planet.
The impact of e-commerce on the environment:
The adoption of online shopping globally is straining our natural resources, such as the creation of excess packaging waste that goes to landfills.
According to a study published on Our World in Data, plastic packaging is the largest contributor to plastic waste, accounting for more than half of the global total.
Ecommerce businesses have a responsibility to make more strategic and sustainable decisions that benefit people and the planet as a whole.
Why should you make your e-commerce sustainable?
Research from the NYU Stern School of Business found that 50% of the growth in consumer packaged goods sales from 2013 to 2018 came from products marketed as sustainable products.
Ecommerce businesses often still have a bad reputation in terms of green business practices. In reality, however, in many cases, e-commerce offers economic and environmental benefits. It is essential to place greater emphasis on ecological practices and to actively communicate them. Consumers are satisfied with sustainable and fair products and are also willing to pay more for them.
How to make your e-commerce sustainable?
Rethink your packaging:
Sending a pair of sunglasses in a box suitable for a piece of furniture is probably not so environmentally friendly.
Using less packaging and choosing environmentally friendly materials is one of the easiest ways to make e-commerce more sustainable. 41% of SendCloud survey respondents said that packaging materials for products ordered online should be fully recyclable. And that figure rises to 71% by looking only at the numbers of Generation Z and Generation Y.
Your sustainability efforts shouldn't stop at the outer packaging. With global paper consumption expected to double between 2010 and 2060, why not just remove paper bills? You can also use thermal printers to save ink, consolidate packaging, ditch unnecessary plastic bags, opt for biodegradable labels, and reuse packaging completely. Your eco-friendly options are plentiful.
Choose Green Shipping
A trend is emerging regarding sustainable shipping options. In Germany, for example, if they had a choice, 86% of Germans would prefer to choose environmentally friendly sailing.
In addition, more than one in five Germans are willing to pay more if it helps protect the environment. According to respondents, the surcharge, however, should not exceed 5%.
While you can't completely offset the environmental impact of your shipment, you can work with couriers that offer carbon neutral or reduced carbon shipping.
For example, UPS and Hermes offer carbon neutral delivery; DHL uses bicycles and electric vehicles, DPD has committed to reducing C02 emissions per package by 14%; FedEx is committed to carbon neutral operations by 2040; while Royal Mail reduced its carbon emissions by 31.9% in 2020.
Customers are interested in CO2-neutral delivery. However, they are not willing to pay too much extra, especially on higher value orders. Be sure to factor this into your pricing strategy for orders and returns.
Adapt your return policies
Returns have a considerable impact on the environment. You are essentially doubling carbon emissions. Make sure all your product descriptions are accurate and include additional size information or FAQs that will help your customers make the right decision and reduce returns.
Promote your sustainable e-commerce
GoGreen is a DHL initiative for the transport of CO2-neutral shipments. CO2 emissions from transport are calculated according to ISO 14064 and then offset by DHL's own climate projects in accordance with the objectives and specifications of the Kyoto Protocol.
GLS also has the ThinkGreen environmental initiative, which uses targeted measures to promote the shipment of environmentally friendly packages. The goal is to use resources as efficiently as possible and optimize processes, reduce exhaust gases and optimize waste disposal.
Don't forget to promote your environmental credentials on your website, packaging, social media and throughout the buyer's journey. Your customers are looking for eco-friendly and ethical ecommerce retailers.
It is evident that environmental awareness increases between Generation Z and Generation Y. As your business and the market mature, it's important to keep a close eye on green developments and changing attitudes and expectations. Take the time to look at your current situation and see what environmental victories you can make in the short and long term. Then, develop a plan to get there.