Sustainability in E-Commerce: How Can Online Retailers Make Their Business Greener?
Online shopping offers convenience but comes at an environmental cost. Nearly one-third of US solid waste originates from e-commerce packaging, and with predictions that half of all retail sales will occur online by 2028, sustainability is no longer optional. A Deloitte study found that 67.1% of consumers either sometimes or always check a brand's sustainability before purchasing. Here is what retailers can do about it.
Tips for Online Retailers
Offer Greener Shipping Options
Partner with eco-friendly carriers that use bikes and electric vehicles for urban deliveries. Companies like Green Courier and DPD have led the way, with DPD winning the Green Apple Award for environmental best practices.
Eliminate Plastic Packaging
Adopt cardboard alternatives, as Zara has done with their plastic-free approach. Avoid individual item packaging when possible, and ensure boxes are reusable or easily recyclable.
Use Reusable Packaging Systems
Follow Ted Baker's model: removable label slips allow boxes to be reused for returns. Returned packaging in original condition can serve future orders, creating a circular system.
Stop Destroying Returns
Amazon faced criticism for destroying returned items instead of reselling them. This practice sends functional goods to landfills, wasting resources and generating unnecessary waste.
Reconsider Free Returns
Returns cost retailers £60 billion annually. Fashion sees the highest return rates at 56%, and US returns generate 5 billion pounds of landfill waste and 15 million tons of annual carbon emissions. Research shows 30% of shoppers intentionally overorder and return unwanted items. Charging for returns discourages this behavior.
Right-Size Packaging
Avoid shipping small items in oversized boxes. Standard sizes waste packing materials and van space. Right-sized packaging reduces material usage, shipping costs, and environmental impact simultaneously.
Improve Product Descriptions
Detailed descriptions and high-quality photos reduce returns. Tools like ASOS's "See My Fit" augmented reality feature help customers assess fit before purchasing, preventing unnecessary returns and the associated environmental cost.
Consolidate Shipments
Combine multi-package orders when possible and educate customers about the environmental benefits of patience. A single consolidated delivery is far more efficient than multiple individual shipments.
Tips for Customers
Sustainability is a shared responsibility. Customers can also reduce their impact:
- Avoid express delivery -- standard shipping allows carriers to optimize routes and consolidate deliveries
- Ensure first-attempt delivery -- missed deliveries trigger second attempts, effectively doubling emissions
- Consider click-and-collect -- within 3 miles of a store, it is more sustainable than home delivery
- Avoid try-before-you-buy -- shopping in-store then buying online duplicates emissions
Online retailers must prioritize sustainability strategies now. While comprehensive overhauls will not happen overnight, those implementing environmental improvements will gain a competitive advantage as eco-conscious consumers increasingly seek greener alternatives. The brands that act first will be remembered by the customers who care most.
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