You're hard-pressed to find a better word than ‘convenient’ to describe ecommerce. With the internet penetration rate in the UK closing in on 100% (it's currently sat at 97.8%), online shopping is more accessible than ever. We’re so used to ordering clothes, homeware, food from just a few taps on our smartphone that we could probably do it in our sleep.
It’s no wonder, then, that ecommerce sales are predicted to hit £177.11 billion in the UK by the end of the year. But having one of the most mature ecommerce markets in Europe isn't all boughs and holly, particularly when it comes to its environmental footprint. Sustainability is on everyone’s mind, and more sustainable ecommerce is on both retailers’ and consumers’ Christmas lists. How can we make sure it's delivered?
Challenges of sustainable ecommerce
To find sustainable solution for ecommerce, we need to look at its environmental challenges:
- Excess and/or unrecyclable packaging
- Carbon emissions from logistics and transport
- Energy consumed by the data centres powering the ecommerce sites
And that’s simply the start – the list goes on, but you know the drill. Whilst consumers revels in the convenience of ecommerce, there’s an entire supply chain with not-so-convenient knock-on effects to the planet happening behind the scenes. Quite the juxtaposition when you look at the audiences ecommerce appeals to.
Gen Z expectations of sustainable retail
Online purchases are made by 55% of Gen Z, with slightly more (64%) willing to pay more for sustainable products or services. It’s no secret that Gen Z are putting the pressure on retailers to tidy up their operations and make them 'greener’. Time’s ticking for ecommerce to do the same. To continue this appeal to the sustainability savvy audience that’s practically in their hands, online retailers need to act – and what better opportunity than the glittery, golden quarter where ecommerce thrives.
Christmas 2024: The state of play
Recent word from the Prime Minister that ‘things will get worse before they get better’ wasn’t quite Christmas music to ecommerce retailers’ ears. But it’s not all doom and gloom. Brits are pining for the festivities, expecting to spend almost £600 (£593.90) each on Christmas-related products and activity.
Shoppers are heading online earlier, hoping to take advantage of the last of the summer sales and the first of the pre-Christmas promotions to buy presents at discounted prices. With consumers making such a head start, there’s time on their side to consider what they're buying, who from, and whether their environmental values align. Ecommerce retailers who’ve got sustainable operations down are in pole position to win a bigger share of the online shopper this quarter.
Responsible returns
Buying’s only one side of this Christmas story, though – returns can be quite the Scrooge. Did you know up to 30% of the carbon emissions of a package's initial delivery can be associated with a return? It’s in everyone’s interest to make sure products are accurately shown and described online, from sizing and materials information to delivery timeframes. The better the delivered item aligns with consumer expectations, the less likely for it to be returned. And, the lower the carbon footprint of the associated shipping, repacking, storing, and redistributing of the product.
One of the quickest and most impactful ways to lessen the returns effect on the planet starts with the packaging the product is delivered in. Designs that enable the consumer to easily repack items in the original case don’t only omit the need for new packaging materials (and its waste). They make the returns process simpler and more convenient for the customer – and more likely they’ll return to your online shop again.
Sustainable logistics
Honing in on this sense of ease, it’s unsurprising the ‘click & collect’ delivery model is going from strength to strength. Over two thirds (69%) of shoppers in the UK use the service, getting deliveries faster in a manner that tends to be more cost-effective than home delivery. Yet, the delivery style’s biproduct is where we can all feel the real value-add.
A courier dropping off tens of items at a single click & collect location is far less costly to the environment than if they were to make tens of single deliveries to individual households. So simple, but so effective. And so straightforward to see why click & collect is likely to get an even bigger share of the delivery market in the near future.
Christmas insight 2024
The milestone of having less than 100 days to go until Christmas Day 2024 has passed us by. It’s prime time for ecommerce retailers to deck their online shops, supply chain partnerships, and festive operations with the environment at the fore. Here’s to the most sustainable winter wonderland yet.
About the author:
Matthew Kay is the Head of Design & Marketing at Greyhound Box, a leading manufacturer and supplier of sustainable corrugated cardboard packaging solutions.