Sustainability in e-commerce: a feasible goal

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Mon, 01.02.2021, 16:00

In addition to sustainable production, the spotlight is now increasingly on logistics, with online shops expected to provide sustainable packaging and shipping options. We're here to explain how to take a more sustainable approach to your online shop and how to meet the very latest customer requirements.

Sustainability is nothing new to Swiss online shops. According to the online retailer survey carried out by the Lucerne University of Applied Sciences and Arts, half of all shops offer sustainable products. However, only 14% of these shops actively promote this aspect. For many retailers, there is room for improvement. Some 79% of consumers would appreciate more information about where the products come from while 65% of customers are also interested in how or under what conditions the products are made. We therefore recommend providing clear communication in your online shop on the manufacturing conditions and product origin (HSLU, 2020).

The concept of sustainability is also an issue for logistics. According to the survey, eight in ten online shops will be giving sustainable packaging more thought in the coming years (HSLU, 2020). So take note of the following keywords relating to zero waste, as they are going to be important:

Reduce, Reuse and Recycle - What exactly does this mean?

Reduce your packaging material to the absolute minimum required
We recommend choosing outer packaging that is adapted to the product and rules out the need for much filler on the inside. This material is seldom reused and often discarded. Keeping packaging to a minimum is not only environmentally friendly, the smaller format also allows for savings on shipping costs.

Reuse: Use packaging again
You no doubt receive large amounts of packaging material from your suppliers. By using this again instead of throwing it away, you are clearing the material backlog while also benefiting the environment. Or are you already familiar with the packaging cushion machine? This machine is used to create filling material from old cardboard.

Recycle: Goodbye plastic packaging!
It's not just e-commerce customers who are sensitive to plastic packaging. Did you know there are countless other options which impress your customers, while at the same time saving money? Instead of using polystyrene chips, filling material made from corn, potato or wheat starch is a superb alternative and also 100% biodegradable. Paper envelopes are another environmentally-friendly alternative to plastic bags. Other less expensive and yet eco-friendly options include wood shavings, HDPE air cushion pads and corrugated card.

Carbon-offset shipping with Swiss Post
Not only the packaging but also the shipping option selected can have a negative environmental impact. We'll show you how to leave the smallest possible carbon footprint when shipping internationally.

Did you know that Swiss Post offsets carbon emissions for all national and international postal items sent by its customers? Since 01.01.2021, Swiss Post has not only offset carbon emissions for domestic letters, but for all postal items, from parcels and small goods to letters sent at home and abroad. Actively inform your customers about sustainable shipping options. Many online shops miss this opportunity, despite customers showing an interest. You will also find more information about environmentally-friendly shipping options in our blog.

There are also other ways to incorporate a sustainable shipping approach into your online shop.

Slow delivery as a low-carbon shipping option
The urgency of courier consignments means they are almost exclusively transported by plane and not in grouped shipments. Economy consignments, on the other hand, are often bundled together and transported by road. We recommend giving your customers various shipping options. For many cross-border e-commerce customers, delivery time is not a critical factor. The estimated delivery date is far more important. In Switzerland, for example, 39% of all customers are prepared to receive their package later if the delivery itself is more sustainable (IPC, 2020).

Partial deliveries – the avoidable environmental sins
Ordering products online from the big Chinese platforms often means you will receive each item separately. This is because the items are sent directly from the factory. Where possible, we recommend avoiding partial deliveries. Why? The unnecessary carbon emissions generated by partial deliveries can easily be avoided for the good of the environment and your finances. Or if some of your customers prefer it that way, why not reward those who choose the bundled option? Or use the "nudging effect" and have the bundled delivery already pre-selected at the checkout as an opt-in. The customer can then decide whether or not they wish to opt out and keep receiving separate deliveries.

Your shipping partner also has an impact on your carbon footprint
As you can imagine, multiple delivery attempts are not the best environmental solution. You should also confirm with your customers whether or not the preferred delivery method requires a signature, because preferred delivery methods tend to vary widely from country to country. While a delivery without signature or to a package terminal may be preferred in northern Europe, it is a very different situation as you move further south.

In addition to the delivery method, the selected shipping partner can also have a major impact on carbon output. Poor-quality delivery damages the environment unnecessarily, while a reliable shipping partner with a high first-time delivery rate will achieve the opposite effect.

And as soon as your consignments leave Switzerland, another challenge awaits. If the goods are valued at 22 euros or more, most consignments will be subject to VAT in their European destinations. What does that mean in concrete terms? If there is no customs clearance solution arranged and the goods sent are valued at more than 22 euros, the recipient of the consignment will be liable to pay the VAT. Your customer will thus be expected to pay VAT, as well as any customs clearance fees, maybe even customs duty, in order to receive their order. This leaves customers dissatisfied and ultimately leads to avoidable returns when the customer decides they don't want the package after all. Therefore, choose a suitable customs clearance solution to prevent any of this happening and make a good impression on your customers. It's also nice to know that you're doing your bit for the environment too, by reducing the number of unnecessary returns. More about this customs clearance solution can be found in our blog about DDP Customs Clearance.

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