Delivering even greener e-commerce in a tough retail environment

By Jason Tavaria, CEO, InPost

Tackling climate change is one of the biggest challenges of our time and, as it continues to dominate headlines and public opinions across the world, a clear focus on sustainability is no longer optional for brands and retailers; it’s table stakes.

But while it’s usually e-commerce that gets a bad rep in this area, recent research has suggested that shopping at bricks and mortar retailers could be up to twice as polluting as buying online.

This is largely down to emissions caused by heating and lighting shops, and the impact of customers travelling to and from them.

Whilst there is an environmental cost to physical retail, it would be wrong to suggest that there aren’t still big improvements that can be made in the e-commerce side of the retail industry.

Shopping online is quick, easy and uncomplicated, meaning there will always be a desire and a place for home deliveries. But longer-term, supporting this exponentially growing demand simply isn’t sustainable or efficient.

In fact, a report by The World Economic Forum, suggests that by 2030, the demand for last mile delivery is expected to grow 78%, with emissions set to rise by nearly a third and adding 11 minutes to each passenger’s commute.

This impact is reflected in recent research we carried out, which found that 43% of shoppers are more worried about the environmental impact of delivery and returns today than they have been in the past — a figure which rises to more than half of 18-34 year olds.

As we reach peak levels of home deliveries, we have to find a smarter way of keeping customers happy while also limiting emissions.

With delivery and returns remaining one of the last undisrupted parts of the retail journey, more efficient solutions to these can also make a significant positive difference.

Of course, we’re already seeing a rise in the number of EVs and other alternative vehicle types being used in retail logistics — a welcome and important step in improving air quality and reducing pollution.

But this isn’t the whole solution. For a start, it doesn’t address the issue of congestion on the roads, especially in urban areas. This is where a bigger uptake of alternative fulfilment and returns options comes in.

Out-of-home Click and Collect points, such as lockers and parcel shops, have the potential to be a game-changer for e-commerce retailers — not just from the standpoint of customer convenience but also from the perspective of sustainability.

First we removed the queues. Now we’ve removed the labels. Introducing INSTANT RETURNS.

For the first time ever, online shoppers can drop off returns in TEN SECONDS without ANY labels being applied.

Head to our website to find out more.https://t.co/dojeQrbvZO pic.twitter.com/OQYpV4s8m6
— InPost UK (@InPostUK) March 26, 2021

With home deliveries, for example, couriers might drive from home-to-home to make 50 individual deliveries, or they could deliver all parcels to a locker in one consolidated drop.

This means they spend less time on the road and drive fewer miles, reducing traffic congestion and emissions.

Consumers then have the option to collect their purchases at a time that suits them best.

And with lockers available 24/7 at convenient locations such as supermarkets and train stations, they can pick up and return items as part of their daily routine, meaning they don’t have to go out of their way or make additional trips.

Not only do out-of-home options significantly increase flexibility, they also put an end to waiting in, parcel queues and missed deliveries.

The latter of which is of even greater importance now, as people start to return to work and deliveries to home may not always take place on the first or second delivery attempt. Something that contributes, again, to raised emissions.

With shoppers calling on retailers to offer more environmentally friendly ways to receive and return goods, but also demanding increased convenience and ease, the message is simple: it’s no longer enough for sustainable delivery and returns to be an add-on or afterthought.

Looking ahead, it’s clear that bricks and mortar stores will, of course, always play a part in the retail experience; proven by 71% of 18–34 year olds saying they plan to shop using a mix of in-store and online once pandemic restrictions start to lift.

But equally, there is also no doubt that e-commerce is here to stay.

So, with shoppers becoming more environmentally conscious, retailers must actively encourage customers towards greener delivery options, such as Click and Collect, at the point of checkout.

Prioritising these over traditional home deliveries will prompt changes to long-established habits. With new ways of living and working emerging in the post-pandemic world, now really is the time to help foster new habits.

In an already tough environment, and with home deliveries at an all-time high, offering such solutions really is a win-win: giving customers convenience whilst also reducing retailers’ impact on the environment.

Doing this will set brands apart in the battle for customer satisfaction and loyalty.

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