Consumers are likely to wonder how an increasing Online Shopping will affect the environment. With a constant increase in online shopping comes an increase in parcels and packaging. Are the effects of e-commerce negative on the environment? Not necessarily, or as often when it comes to discussing the environment it depends.
As an e-commerce merchant you can contribute to a better environment by finding ways to decrease your business environmental impact. It´s in your interest as there are many benefits in taking a green approach. These are some areas worth looking into where it´s possible not only to reduce environmental impact, but also reduce costs and improve sales:
- Transport
- Packaging
- Quality of customer data
- Quality of product data
Transport
Big E-Commerce giants like IKEA Amazon.com and Buy.com relate to studies that state that e-commerce reduces CO emissions. Results from the Buy.com study showed that, on average, Buy.com’s model fared better in reducing carbon dioxide emissions and energy consumption with fewer steps in getting products from manufacturers’ warehouses to consumers’ homes. These studies refer to the US and are probably not applicable to all on-line shopping or to all parts of the world. Small e-businesses might lack the logistics and major cities in Europe where it´s common to use public transport might not fit the model. It makes sense though that if products are delivered along an optimized route with a low emission vehicle to individual homes or a pickup place it´s likely better than every consumer driving back and forth.
Consider if your deliveries can be made by a made by green options and optimize deliveries to and from your warehouse, not only routes but also time of day to avoid traffic congestions. Mataffären is a good example. If possible reduce deliveries per week. Svanström and their logistic partner Posten AB studied the effects of customers order patterns and by encouraging customers to make collective orders and reducing deliveries per week they reduced paper use, packaging and CO emissions. They offer their customer a review of the customers order patterns and how it affects the environment and suggest actions. Read more here
The Swedish Governmental Agency for innovation systems concludes in their report that an increase in on-line shopping could lower energy consumption but it´s dependent on how the companies manage their transports. The conclusions seems to be that if on–line shopping will continue to grow the transportation options will evolve and the logistics improve to the better for the environment.
Packaging
Make use of environmental friendly packaging. As the product will not be displayed in a shop the plastic cases can be replaced by packaging which is both environmental friendly and user friendly as they are easier to open. Besides affecting the manufacturers packaging the package sent to the customer should be environmental friendly and waste can be reduced by using the right sized box and when applicable reusable packages. Amazon.com has come a long way in this area and hopefully others will follow.
Quality of data
E-commerce is more than sending packages, there are other issues involved e.g. quality of customer data and the quality of product data. Improve data quality reduces waste and cost for direct mail as a data quality system ensures that the customer records are as accurate as possible. Avoid duplicates and enable e.g. one catalogue per household. Read more in our partners Jan Erik Ingvaldsen, OMIKRON blog Fight Global Warming with Data
Quality
Quality of product data
It´s important to ensure good product data quality so that the customer gets the information needed to make the right product choice. You want a satisfied customer and you want to avoid returns which will have negative effect on the environment. Good product information is one of the most, if not the most, important factors when it comes to e-commerce. There are so many ways you can present product data to help your customer. If it´s a technical product you can inform the customer about the products benefits , how it works, how it´s installed, list compatible products and so on. Make use of all the possibilities that comes with the web e.g. with instruction videos, customers reviews discussion forums and on-line customer support.
If you sell clothes you need to help the customer find the right size and fit, by having clear information about the size and fit of every item. Virtual dressing rooms are something we will see a lot more of in the future. Size guide lines are a must and customer reviews on a products size and fit can also help a lot.
Promote products which are a greener choice. Products that have an environmental certification due to the way they are produced, the content of the product, if it´s energy efficient or friendly to the environment in other ways. Give the customer an option to filter out products with an environmental certificate and/or create a shop in shop for greener products.
Finally it´s the product itself and everything that comes with a product that makes it a greener choice or not, and if it satisfies the customers’ expectations or not. We as e-commerce consultants want to contribute by covering what´s going on concerning e-commerce and the environment and helping our customers making the right choice.