Explore sustainable e-commerce practices transforming online retail by 2025. As 2025 approaches, e-commerce evolves with tech and consumer changes. This blog covers trends shaping e-commerce. Retailers can cut emissions with recycled materials, refill stations, renewable energy, and green partnerships. Sustainable e-commerce seeks to minimize environmental impact, though it can be contentious with consumption. Some companies truly aim for sustainability, while others greenwash. It's vital for reducing environmental impact, boosting brand loyalty, and potentially increasing profits.
Retailers can introduce multiple sustainable practices into their production line and distribution services to reduce emissions. These can include using sustainable or recycled materials, introducing refill stations, powering offices and fleets with renewable energy, and partnering with green businesses.
According to the dropshipping app Oberlo, e-commerce sales are projected to grow by at least 50% from 2022 to 2025, increasing from $907.9 billion to $1.4 trillion.
To mitigate the risk of worsening climate change, these e-commerce sales must incorporate sustainable practices.
The term 'e-commerce' refers to the digital buying and selling of goods or services, while 'sustainable e-commerce' aims to reduce the environmental impact of these transactions. What does a sustainable e-commerce strategy involve? Essentially, it means online retailers adopting environmentally friendly and socially responsible practices, such as reducing packaging, utilizing renewable energy, and cutting down on shipping emissions.
Sustainable e-commerce involves carrying out online sales with a focus on minimizing their environmental impact. Since sustainability seeks to lower the demand for natural resources and shopping encourages consumption, merging these ideas can be contentious. The meaning of 'sustainable e-commerce' varies among users; some companies sincerely work to meet their sustainability goals, while others engage in greenwashing.
The primary reason sustainable e-commerce is crucial is to lessen our environmental impact. By using more recyclable materials, fostering a more circular economy, and reducing carbon emissions during product transportation, sustainable e-commerce can help us maintain our efforts.
Additionally, sustainable e-commerce enhances brand loyalty among environmentally conscious consumers, potentially increasing long-term profits.
The term ‘sustainable’ can sometimes be a bit of a murky or ambiguous phrase, so it’s important to clarify what it truly entails.
Environmental sustainability encourages individuals and businesses to operate in a manner that minimizes the stress and depletion of natural resources. This involves making conscious choices that ensure the health and availability of these resources for future generations. But does this inherently mean that the term ‘sustainable e-commerce’ is contradictory, especially since shopping typically promotes the consumption of materials and resources?
The answer largely hinges on the practices of individual businesses within the e-commerce sector. Any brand that is genuinely committed to sustainable e-commerce will not only make public claims about its dedication to sustainability but will also provide clear, detailed, and transparent plans on how it intends to achieve these goals. This includes strategies for lowering emissions, such as utilizing energy-efficient technologies and renewable energy sources, as well as implementing measures to avoid unnecessary packaging by opting for recyclables or biodegradable materials. Furthermore, these businesses will actively work to generally reduce their overall environmental impact in every aspect of their operations, from supply chain management to product sourcing and delivery methods.
This is precisely why consumers need to remain vigilant and informed about the concept of greenwashing—a deceptive practice where businesses falsely promote their products or activities as environmentally friendly. It can be alarmingly easy for companies to claim they are sustainable, all while they continue to engage in practices that are harmful to the environment. By being aware of and scrutinizing these claims, consumers can make more informed decisions, support truly sustainable businesses, and hold companies accountable for their environmental impact.
Sustainable e-commerce doesn’t just benefit the environment and conscious consumers — the company itself can benefit too.
Although emissions fluctuate from business to business, we have a general idea of where e-commerce emissions come from, thanks to researchers at the Massachusetts Institute of Technology (MIT).
Packaging accounted for nearly half of the carbon footprint of the typical online retailer. Product returns constituted a quarter, while transportation and property-related emissions made up the remainder.
As consumption continues to rise, particularly with the growing popularity of events like Black Friday, these emissions will also increase. This not only further depletes the Earth's natural resources but also accelerates climate change due to the increasing carbon emissions released into the atmosphere.
However, by integrating sustainable e-commerce into their business strategies, more brands can help mitigate the worsening effects of climate change.
Thinking of adopting sustainable e-commerce as part of your business strategy? Here are the best ways you can do it:
We’ll cover all seven ways in more detail below — but first, a quick look at what you can expect:
|
Rank |
Method |
Description |
|
1 |
Packaging |
Using more eco-friendly materials in your product packaging |
|
2 |
Shipping |
Offsetting your shipping emissions |
|
3 |
Carbon neutral hosting |
Using an eco-friendly web hosting solution |
|
4 |
Provide offsetting options |
Reducing your environmental impact throughout the sales process |
|
5 |
Recycling policies |
Offering recycling programs for reusable packaging |
|
6 |
Returns programs |
Inspiring greener consumer behaviour |
|
7 |
Eco-friendly incentives |
Offering rewards for eco-friendly spending decisions |
One of the most significant shifts in e-commerce is the move towards eco-friendly packaging. Companies are increasingly adopting sustainable packaging solutions to reduce their environmental impact. This includes using biodegradable materials, recycled content, and innovative packaging designs that minimize waste.
In 2025, we expect to see more advancements in this area, such as packaging that can be composted at home, reusable packaging options, and smart packaging that reduces the need for additional protective materials. These innovations not only help the environment but also cater to the growing consumer demand for sustainable practices.
Green supply chain management is becoming a critical focus for e-commerce businesses aiming to reduce their carbon footprint. This involves optimizing logistics, reducing waste, and ensuring that every step of the supply chain adheres to environmentally friendly practices.
Companies are investing in technologies that enable better route planning to minimize fuel consumption, using electric or hybrid delivery vehicles, and collaborating with suppliers who prioritize sustainability. These efforts not only contribute to environmental conservation but also enhance brand reputation and customer loyalty.
As the demand for e-commerce grows, so too does the requirement for data centers to manage the vast amounts of data produced. Despite this, data centers are notorious for their significant energy usage. To address this, companies are actively exploring methods to enhance the energy efficiency of their data centers.
Looking towards 2025, we expect an increase in the utilization of renewable energy sources like solar and wind to power data centers. Furthermore, innovations in cooling technologies and energy-efficient hardware will be pivotal in minimizing the energy consumption of data centers, thereby enhancing their sustainability.
Consumers are becoming increasingly conscious of where their products come from and how they are made. Sustainable product sourcing is, therefore, a growing trend in e-commerce. This involves sourcing products from suppliers who adhere to ethical and environmental standards.
In 2025, businesses will likely emphasize transparency in their supply chains, providing customers with information about the origins of their products and the sustainability practices of their suppliers. This not only meets consumer demand but also helps in building trust and fostering long-term customer relationships.
Delivery is a significant aspect of e-commerce that contributes to carbon emissions. To address this, many companies are exploring carbon-neutral delivery options. This includes offsetting carbon emissions through various initiatives such as tree planting, investing in renewable energy projects, and using carbon credits.
By 2025, we expect to see more widespread adoption of carbon-neutral delivery services. Companies may also offer customers the option to choose carbon-neutral delivery at checkout, allowing them to contribute to environmental sustainability. These efforts will not only reduce the carbon footprint of e-commerce but also appeal to environmentally conscious consumers.
There are countless factors that contribute to a company’s carbon footprint, and just as many ways to start chipping away at it.
Build sustainability into your company’s values, and it will ensure that every decision you make takes the planet into account – whether you’re sourcing raw materials, choosing a shipping partner, or deciding on packaging material.
Sustainable e-commerce isn’t always as obvious as recyclable packaging and electric vehicles. In some cases, it’s as subtle as detailed product descriptions or offsetting plastic use.
But if you’re investing time, money, and energy into the planet, you don’t have to be subtle. Consumers want to know which brands are sustainable because they want to make a conscious choice.
Want to reduce your business’s plastic footprint? We can help. All you have to do is get in touch with our in-house team. Once we’ve received your details, we can arrange a call to discuss which plastic recovery plan will suit your business needs best.