Online shopping continues to increase every year. In Mexico alone, while in 2017 only 7% of people resorted to e-commerce, in 2018 the figure increased to 38%, according to the Mexican Association of Online Sales (AMVO for its acronym in Spanish). And this did not mean a big problem, as e-commerce used to pollute to the same extent as traditional commerce.
However, this has changed, as we become more accustomed to e-commerce and it begins to offer conveniences and improvements, delivery times are the issue that makes the difference. They become a value proposition for companies, but at the same time, the environmental cost of this apparent competitive advantage is a concern.
When we shop at online stores, we usually prefer the fastest shipping; especially if it is free. However, all of our purchases have associated contamination.
With standard shipping, stores try to pack as many products as possible into as few packages as possible and to fill trucks and vans as full as possible. With expedited shipping, this changes, as delivery vans are somewhat emptier, or the number of deliveries of a single order is increased by delivering them as they become available.
It increases the number of trips given by vans and CO2 emissions. And while a domestic shipment is usually made by trucks and vans, if it comes from another country there will almost certainly be airplanes involved.
Another reason that makes expedited shipping such an environmentally damaging option is the returns. Some companies have a free return policy, another example of a factor disguised as a competitive advantage.
The consulting firm KPMG points out that around 25% of products or services purchased online are returned (including, for example, hotel or airline reservations), a percentage that rises to more than 30% in the case of clothing. This forces additional trips to pick up orders and make them travel hundreds or thousands of extra kilometers.
Also, consider that many of the products that are returned are not put back on sale by the retailer. Some end up in discount stores and others are just discarded. Also, some companies retry shipments up to three times if the buyer is not at home.
Finally, there is the issue of waste. This is the boxes and waste generated from product packaging, which is much less in physical stores than in online orders. Emine Saner, in her article Delivery disaster: the hidden environmental cost of your online shopping, explains that “almost a third of solid waste in the United States comes from e-commerce packaging”.
In many cases, instead of concentrating purchases in one package, they are separated into multiple packages, so that items are shipped out as they become available so as not to delay other products, which results in the use of more cardboard and the generation of more plastic waste.
Logistics companies have tried to combat the environmental problems they cause on the planet. However, the measures they take often seem to be insufficient.
Let’s analyze the case of Amazon: Luis Meyer in his article ‘Amazon suspends renewable energies for Ethic platform’, mentions that Amazon’s short-term goal is to [“innovate to reduce spending on materials to protect, package and ship products; reduce operations costs by using more recycled materials; increase the density of the packages we send”].
At first glance, these measures, coupled with the company’s large investments in sustainability activities and renewable energy projects, appear to be an adequate remedy to counteract the environmental impact of its activities. But are they really? The figures indicate otherwise since, during the last Prime Day, Amazon shipped more than 250 million items worldwide.
We must also consider that it is not only the CO2 emissions generated by each shipment but also the packaging involved in these purchases. And if we also review the company’s return data, whose policies have been modified and, at least in the USA, no longer require an explanation from the buyer, the figures become stratospheric. Amazon will not be able to implement sustainable policies that really make a difference until it puts the needs of the planet above the increase in its share price.
Buying online can be responsible and environmentally friendly, as long as the actions of consumers and retailers are taken care of. It is important that we, the consumers, analyze the impact that our consumption habits have on the environment and take responsible actions.
For example, we can avoid ordering items separately, as well as express shipping. We can try to order together with several friends and share the culture of ecological prevention that is so necessary.
In the case of logistics companies, they should allocate resources to analyze these effects and implement more planet-friendly logistics strategies. However, in order for companies to really get down to work and forget about year-end profits for a moment and start thinking about the environment, we consumers must first be aware, as we have the power to shape the market.