Companies such as DHL announced record growth during 2020, as well as new operational hubs, depots and staff to support demand. Consumers want to decide for themselves where, when and how a package is delivered. Not only does this need to be delivered fast and cost effectively, but consumers are also wanting providers to think sustainably in the way they ship goods.
According to the data from Statista the breakdown of estimated e-commerce greenhouse gas emissions as of 2020 is as follows:
The greatest share of greenhouse gas emissions generated by the e-commerce industry comes from the packaging of goods, accounting for approximately 45 percent of total estimated emissions. According to simulated scenarios, package returns represent about one fourth of the total e-commerce emissions. Thus shifting to green delivery and packaging has is a must and a significant change to be followed.
What does 'the age bracket says?
A survey from SageAdvice" says that the pressure is on from Gen Z and Millennials. 60% of 18 – 40-year-olds say that the rise of online shopping is a problem for the environment. 83% of shoppers say they’d choose green delivery where possible. However, 48% of shoppers say that, while they prefer ‘green delivery’, they wouldn’t pass up on a great store that does not offer it. When asked: “Would green (CO2 neutral) delivery affect your online purchasing decision?”, Boomers show significantly more disinterest in green delivery than Generation Z (10%), Millennials, and Generation X.
Aside from off-setting carbon emissions with green shipping, many shoppers have gripes about poor packaging choices. 80% of shoppers say that packaging materials should be fully recyclable. While 75% say that e-commerce stores use too much packaging with their orders (maybe it’s time to rethink that extra roll of bubble wrap!).
What could be the best options for Green Delivery?
The trend is in particular contributing to making deliveries more sustainable while putting the customer first, a few alternatives are:
1. Eco-friendly delivery options
The best way to tackle a problem is at the source. In other words: making consumers aware of the impact of their delivery option of choice. Ordering online can be as easy as clicking a button and finding your order at your front door the next day. It’s so quick and easy that people don’t even have the chance to think about how their delivery impacts the environment.
Fast delivery is nice, but not always necessary. Many consumers will choose to save money and get their order a bit later. According to an Accenture report, 36% of online shoppers are actually happy to wait longer for free delivery.
Customers could be encouraged to opt for a more sustainable delivery by charging for next-day delivery and offering slow delivery for free. Another option is to let them choose between rush or no-rush delivery, to make them aware of the environmental impact of fast shipping. By communicating clearly in the check-out, online retailers can offer both flexible and green delivery options at the same time.
2. Using empty cargo space smart fast and reliable
Another way to ship items to customers quickly and sustainably is to make smart use of existing cargo space, as currently more than 50% of the delivery trucks in Europe drive around partly or completely empty.
Utilising empty cargo space of trucks makes logistics more sustainable while reducing transport costs. For example, via freight platforms such as Saloodo! carrier can offer their unused cargo space to shippers.
The digitalisation of logistics is unstoppable and, fortunately, is reaching ever greater proportions.
At the end of 2020, Saloodo! expanded its platform into a global freight platform and has been continuously expanding worldwide ever since. To date, the company is active on four continents and offers an efficient way to optimise the use of assets. When utilited and organised efficiently, digital platforms can significantly contribute to CO2-reduction methods.
3. Changing ways for a greener future
The CO2 reduction is simple in theory: the less time the delivery drivers spend on the road and the greater the utilisation of the truck, the lower the environmental footprint.
Today’s technology allows for automated route optimisation, therefore increasing vehicle efficiency. Greenplan, a DHL-financed start-up, has developed an algorithm that supports green route-planning and accounts for factors such as carbon emissions of vehicle type and range limits of electric vehicles. By combining these, Greenplan creates automated route optimisation for more efficient and sustainable journeys.
4. Going the extra mile for a green smile: localise delivery
Local delivery offers a solution for both sustainable and flexible delivery services. These delivery strategies aren’t just for e-commerce giants, however, as smaller, more independent e-commerce stores can also look closer to home.
For example, if you have many parcels in the region, you can have them delivered by a local courier, maybe even by bike or on foot. Lockers are also becoming more popular, allowing multiple deliveries to be dropped off and picked up at a time convenient to the consumer.
Not only does this save CO2, but the shorter distance often allows you to deliver faster than through a national network.
Despite of the fact that these alternatives have a great potential towards reduction in packaging level emissions, however they still account for a small share in the same. We still have the massive fuel cost that still needs a replacement and/or a solution.
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