E-commerce may significantly boost sales, but what about its impact on the planet?
Let's unpack it.
We’re approaching the busy (and hopefully profitable) festive season for product businesses, and with sustainable gift purchasing increasing amongst many consumers, impact businesses will be hopeful to see a boom in sales over the next month.
In 2022, almost 80% of UK consumers bought their Christmas gifts online, according to Statista. That’s a huge shift in behavior from traditional high street Christmas shopping. Perhaps the crowded shops, blaring festive music, and overwhelming amount of choice is just all a bit too much these days?
It’s therefore vital that your business’ e-commerce is set up to efficiently lock in as many sales as possible. But, as impact entrepreneurs, it’s also just as important to ensure that you do this as ethically as possible.
The impact that e-commerce has had on our planet in the last few years (significantly since COVID 2020) has been huge. And although there are some arguments convincing consumers that shopping online can be good for the planet, unless businesses are doing their part to the best of their ability, and consumers are too, this isn’t actually the case.
Unfortunately, many problems associated with e-commerce are unavoidable for businesses; for example the carbon footprint of shipping and delivery or the unsustainable purchasing behaviours of consumers (over-consumption, waste, favouring faster delivery etc.).
However, that’s not to say that businesses should not be aware of the environmental and social impacts of e-commerce - there are still so many steps we can take to do our part.
We’ve written a full breakdown of the impacts of e-commerce on our planet so you can learn more about this here:
We’re also working on a list of quick steps you can take to “green” your e-commerce and make it more sustainable. For now, here are some ideas to get you started:
Community Building: Offer a buy and re-sell scheme to get community members talking and to initiate a more circular economy approach.
Last Mile Delivery: Offer a collection from store option, or target customers that live near to customers you already deliver to if you offer a subscription service.
Packaging: Invest in some sustainable packaging options, and reduce the amount that you use.
Split-shipping: Invest in logistical technology that efficiently organises your orders to avoid split-shipping and deliver goods sustainably to reduce transportation emissions (and costs). Communicate this as a “slow delivery” option that is greener to consumers wanting to do their part for the planet.
Innovation of the week
The Rounds
The Rounds is a sustainable household delivery service that offers 70% of its products in reusable packaging to four cities across the USA.
Since it closed its $38 million Series A last year, they’ve saved 375,000 pounds of packaging waste, and used AI to optimise delivery routes to reduce carbon emissions.
The Rounds are serious about using e-commerce sustainably to drive growth. Why? According to a study by the World Economic Forum, online shopping could generate 36% more carbon emissions than traditional retail by 2030, mainly due to last mile delivery.
The Rounds target new customers using technology to select postcodes that they already deliver to, such as apartment buildings, to reduce their emissions on the last mile.
“We’re excited about proving that two-way last-mile logistics can in fact be done hyper-efficiently to be both profitable and good for the planet.” - Alex Torrey, CEO and Founder of The Rounds (Source: Tech Crunch).
They are also using AI to create a “psychic home manager” to help homes determine what they need to restock and when - which will also help to reduce food waste by preventing unnecessary buying (such as items that customers may have forgotten they already had).
This feature is also being introduced to increase the average order value by providing smart, algorithic recommendations of what the specific customer might like.
Member Spotlight
Franziska Mesche
🚴♀️ 🤾♀️ 🏄♀️ 🤸♀️ Question: Why have a different outfit for every sport, especially if it's not sustainable?
This is the challenge Tripulse tackles head-on, offering high-performance activewear fashioned from eco-friendly, wood-based fibers.
Meet one of our founding members, Franziska Mesche, the brilliant founder behind Tripulse – a brand that seamlessly combines fitness, sustainability, and community.
Franziska's unwavering commitment:
✅ Advocate for responsible consumption.
✅ Prioritize materials gentle on our Earth.
✅ Maintain full traceability of the supply chain.
Quickfire with Franziska:
✨ What inspires you on a daily?
"Conversations with interesting people, being in nature, movement."
🚀 What keeps you motivated to keep going?
"The change I want to create in this world."
💡 What was your ah-ha moment that made you start your business?
"That all my sports clothes are made from plastic. How can that be great for our bodies and planet?"
Coming up on WONDR
Next week we will be looking into clever tactics to help grow your e-commerce sales, drawing from successful sustainable startups that have used innovative methods to drive sales.
Bye for now, have a great weekend!
The WONDR Team