Sustainability and the Future of E-commerce

Photo by Brooke Lark on Unsplash

E-commerce is now a pivotal part of the economy as new technology and advanced delivery systems have allowed the industry to modernize exponentially. With an emphasis on convenience, e-commerce now allows consumers to be able to purchase anything they desire without even leaving their seat. However, what many people aren’t aware of is that the simple act of placing an order online can have serious environmental implications. 

E-commerce (electronic commerce) refers to the buying or selling of products on online services or over the Internet. For example, stores such as Amazon, Ebay, Etsy, and Shopify are all considered e-commerce websites. Additionally, most businesses that have physical stores will also offer online stores, making e-commerce one of the most common forms of shopping. 

E-commerce has been growing at unprecedented rates within recent years. The e-commerce industry in the United States alone is projected to reach $1.06 trillion by the end of 2022. Although this growth has been beneficial for both business owners and customers, it has taken its toll on the environment by generating emissions and waste. The transportation of goods and services alone is responsible for a large portion of CO2 emissions. In fact, according to Statista, in 2020, the shipping and return of products accounted for 37% of the total greenhouse gas (GHG) emissions. Furthermore, as the demand for e-commerce rises every day, so does the number of vehicles needed to transport goods. It is estimated that by 2030, the number of delivery vehicles will increase by 36%, reaching approximately 7.2 million vehicles and resulting in an increase of about 6 million tonnes of CO2 emissions.

However, the greatest share of greenhouse gas emissions generated by the e-commerce industry comes from the packaging of goods, which accounts for approximately 45% of total estimated emissions, not to mention the amount of plastic packaging that often ends up in landfills. In 2019, e-commerce plastic packaging waste was estimated at more than one billion kilograms worldwide.

At the same time, the movement for business ethics and sustainability has also gained more popularity. A 2019 study found that 80% of consumers in North America, Europe, and Asia felt it was “important or extremely important” for companies to design environmentally conscious products. Additionally, the Global Buying Green Report from 2021 states that 67% of consumers find recyclability of packaging important. This statistic indicates that consumers are more likely to purchase from e-commerce businesses that have sustainable practices. It is more important now than ever for companies to become more environmentally conscious.

Some brands are already incorporating sustainability into their online shopping platforms. For example, Patagonia, an outdoor clothing retailer, has launched their “Worn Wear” campaign. This site allows customers to buy and sell used clothing while also offering advice on how to repair damaged clothing. Through this campaign, Patagonia emphasizes creating long-lasting, durable clothing, which is especially important in an industry where fast fashion contributes to a large amount of waste. Another example is Thrive Market, an online membership-based grocery store that offers deals on organic and ethically-sourced products. Some of its most beneficial features include ​​carbon-neutral shipping and recyclable packaging.

As the e-commerce industry continues to expand, it is necessary to recognize its contributions to greenhouse gas emissions and landfill waste. Luckily, with consumers growing more conscious of the environmental impact of their shopping and many companies taking the initiative to increase their sustainability, the future of e-commerce is already looking greener.