Electronic commerce, or e-commerce, has become one of the most considerable transformations in the history of business. As the e-commerce segment continues to grow, the question of its environmental impact becomes increasingly important.
Zero-waste, or low-waste, e-commerce is one of the promising concepts in the field. Such a system does not produce waste throughout the whole life cycle of the product, from extraction and production to disposal or recycling. It is worth noting that waste concerns are also growing with other environmental trends, such as decarbonization, which are becoming increasingly important for consumers.
This post will explore the challenges and solutions faced in the process of adopting or moving on with the zero-waste e-commerce concept; the analysis will be supported by both previous case studies and outlook points.
The Challenge of Achieving Zero Waste in E-Commerce
Zero waste in e-commerce is a big challenge. First of all, it references the environmental pressure of this industry. According to the latest estimations from 2022, the e-commerce sector produces 25 million tons of packaging waste a year.
These amounts are said to rise to 30 million tons by 2025 if no action is addressed to the issue. This growing trend is alarming and suggests that a solution to the problem must be found as soon as possible.
The main problems with zero-waste e-commerce are associated with the use of single-use packaging. Currently, companies use a limited number of packing materials, including plastic and non-recyclable products. The growing amount of waste results in the emergence of the landfill crisis.
That is why, with a larger number of customers being engaged in eco-online shopping, it is imperative for companies to invest in new waste reduction initiatives. Innovations in the area of zero-waste packaging, such as compostable and reusable materials, will be adopted frequently. By 2030, it is expected that at least 50% of the e-commerce packages will be reusable or compostable.
Another problem is the lack of knowledge among consumers about the environmental impact of their shopping habits. Educating the customers and explaining the meaning of waste will always be important while the industry is evolving.
That is why by 2025, it is expected that 60% of customers will look for sustainability performance and ask more specific questions, and all effective answers should be provided by the online businesses to sustain their position.
Innovations and Best Practices for Zero-Waste E-Commerce
Innovative solutions in the area of e-commerce allow companies to eliminate waste and improve their profitability. The best practices for zero waste help develop effective strategies that protect the environment and improve the performance of the industry. The following seven innovative tactics will be the most important and used frequently to achieve zero waste in the e-commerce sector:
- Sustainable Product Sourcing is commonly used by an increasing number of online businesses. By 2030, at least 40% of online retailers will signal their contribution to the area by their commitments to responsible products, reducing waste across the supply chain.
- Product Reuse and Refurbishment: The development of a utilization-based business model implies that an increasing number of e-commerce retailers will sell refurbished goods. By 2030, it is expected that 25% of online purchases will be refurbished or reused products, which will become appealing due to the low price and reduced waste.
- Packaging Redesign and Recycling: Advances in packaging technology will lead to the replacement of single-use plastics as the most prevalent material with new options that are biodegradable and easily recyclable. By 2030, 40% of the materials used for packaging by e-commerce companies will be recyclable, and 25% will be produced from recycled materials. This will significantly limit the impact of packaging materials on landfills and overall waste production.
- End-of-Life Product Take-back Programs: Improved environmental awareness will prompt companies to offer products that are easy to recycle, and approximately 30% of e-commerce clients will seize the opportunity, managing to decrease waste by 2023.
- Green Delivery Mainstream Adoption: With the increased environmental consideration and efforts to limit waste production, e-commerce service providers will adopt “green” delivery options on a large scale. Approximately 45% of all online deliveries will be carbon-neutral by 2025, delivered through optimized routes using an electric or hybrid fleet.
- Reusable and Waste-Free Shopping Model: Companies will offer online shopping opportunities that are waste-free, allowing consumers to avoid packaging goods as they are delivered. In 2028, it is expected that 15% of e-commerce orders will be for such waste-free products because consumers will be focused on sustainable solutions.
Addressing Challenges in Zero-Waste E-Commerce
While zero-waste e-commerce is a promising concept, there are multiple challenges associated with this approach. The following factors need to be considered and addressed:
- Businesses’ Resistance: Many businesses are reluctant to move toward new approaches as there is a possibility that their activity will be disrupted to some extent. To address this issue, companies need to promote the benefits of the new practice, namely, the long-term sustainability of their businesses.
- Costs: While moving toward using more eco-friendly materials and approaches, businesses may face increased costs. However, in the long run, the companies will be able to save significant resources, and hence this challenge needs to be overcome.
- Supply Chains’ Complexity: Supply services are complex, and, therefore, moving toward the use of a zero-waste approach might also increase risks that need to be addressed through proper measures.
- Customer Requirements: Customers may have different preferences and ideas associated with the provided packaging and goods availability. However, they can be educated, and the necessary information can be shared with them; hence, this issue can be addressed by the companies.
- Innovations and Technologies: Many new solutions, such as packaging, will become available in the future, when the required technologies will be invented. Therefore, companies need to stay up-to-date and implement proper research and development activities to be successful.
- Government Regulations: Government policies regarding waste and packaging will become stricter, and companies will have to change along with these policies and approaches.
- Measurement: It is important to measure whether the zero-waste e-commerce aims are achieved.
If the companies and other parties take these measures, then zero-waste e-commerce can be considered a possibility for the future.
The Future of Sustainable Online Retail
The future of sustainable online retail will be heavily reliant on a dedication to zero-waste efforts. As increasing awareness and the preference for eco-friendly practices grow among consumers, key players in the e-commerce industry will be forced to adjust their policies. The predictions concerning the forthcoming state of zero-waste e-commerce are as follows:
- Rise of Eco-Shopping Online: It is expected that by 2035, 80% of shoppers will target sustainable brands actively. The prevalence of eco-friendly shopping practices will therefore grow rapidly.
- Substantial Decrease in Packaging Waste: By 2030, e-commerce packaging waste will decrease by 40%, due to advanced packaging technology and the circular economy paradigm among e-commerce providers.
- Optimization of Waste Management: By 2028, 60% of cities will develop internal waste management systems that will focus specifically on supporting zero-waste policies in e-commerce. This will enhance recycling rates and reduce landfill contributions.
- Cooperation of All Stakeholders: By 2030, 70% of e-commerce players will engage suppliers, clients, and logistics companies in collaborative programs to reduce environmental impact along the entire supply chain.
- Emergence of Self-Packaging Technologies: By 2035, smart packaging will become standard in e-commerce, with comprehensive control over what goes into a package, significantly reducing waste production.
These developments are expected to shape the future of e-commerce significantly.
Embracing a Zero-Waste Future in E-Commerce
The possibility of zero-waste e-commerce is becoming increasingly likely with innovative solutions and a growing interest in sustainability. As companies take on this new challenge, the hurdles and opportunities ahead make it clear that the future of e-commerce will come to depend on its ability to adapt and survive in an eco-friendly world.
