Is E-Commerce Killing the Planet?
Adventures in Sustainable Living Podcast
Episode 51
Is E-Commerce Killing the Planet?
There are few things I dislike more than going shopping. When I do, it is out of sheer necessity. I walk into a place of business with a mission in mind, purchase what I need and immediately leave. However, online shopping from some e-commerce platform saves me from all of that. It saves me time, gas money, and is enormously convenient.
And while I suspect that most people use e-commerce platforms for similar reasons, I really got to wondering if e-commerce is truly our friend or if online shopping is just as harmful to the environment as anything else we do. I was pondering this question after I had unpacked another online order and was sitting in front of my cabin looking at a stack of cardboard boxes.
In this episode I am going to examine the question Is E-Commerce Killing the Planet?
Welcome back everyone to the Adventures in Sustainable Living podcast. This is your host Patrick and this is E51 Is E-Commerce Killing the Planet.
But many conscientious online consumers have asked themselves a similar question. What are the impacts on the environment of shopping online versus traditional retail.
I am going to have to admit that when I started researching information for this episode, I had already made my own conclusion. But, that was a mistake. As I soon found out, some of the online giants out there clearly state that online shopping has significantly decreased environmental impact compared to customers physically going to a place of business. But, it truly is not that simple and is much more complicated than you could imagine. So what I want to do is to present both sides of the issue and then get down to the bottom line of the most sustainable alternative.
As I mentioned in the introduction to this episode, the times that I do go shopping is out of sheer necessity. And 90% of the time that I do so, it is usually because I need something for the homestead. So, I make trips to the local hardware store, Home Depot, Lowes, etc. The other reasons I will go is typically to an outdoor shop because I need something for hiking or camping.
But, all the other times I need something, I usually do my shopping online. I can compare similar items, read reviews, ask questions, and finally make the decision of what to purchase. Then the product gets delivered to my business mailbox without my having to go anywhere.
And besides, as many of you likely do not realize, I live on some acreage off of a private road. You have to go through 3 locked gates to get to the cabin. What that means for me is that the standard home delivery services such as the Postal Service, UPS, and Fed Ex cannot get to my home at all. Even if something does get delivered to the post office, I have to go 30 miles out of my way to pick it up. Consequently, I have a business mailbox in a convenient location. And online shopping creates an enormous convenience for me.
But despite living off the grid for over 25 years, I am still learning things and as far as sustainability is concerned, I am constantly questioning what I am doing and why. That said, I started wondering about the implications of online shopping as far as the environment is concerned. And of course whether such practices are actually sustainable.
So to start out this episode, let’s first look at the most common reasons that people shop online.
The most common reasons people shop on the web is:
-Convenience and ease of use is #1.
-Comparison shopping. People can compare products from multiple different vendors in one setting. This is not possible in a standard brick and mortar business.
-Better prices of course: many times people will actually visit a physical store to first determine exactly what they want. Then they will shop online for a better price.
-Reviews from other shoppers: This of course helps you to choose the best product
-Saving time: This is often cited even above finding the lowest prices.
So, this sounds a lot like me. And according to some sources I read, there were 256 million online transactions in the United States alone in the the year 2020. And this year E commerce spending in the U.S. hit $82.5 billion, which is up by 77% from the year before. Obviously online shopping is here to stay.
But while we all sit at home using our laptops to order products and relish the amount of time we have saved, what kind of affect does e-commerce actually have on the environment and is it really sustainable? What are the pros and cons?
Positive Environmental Impacts of E Commerce
At face value, here are some of the positive environmental impacts of E-commerce.
- Transportation Emissions are greatly reduced because organizations can do business without owners or employees physically commuting to a place of business.
- Paper waste is reduced due to the fact that information is stored digitally
- Digital information transfer paired with digital manufacturing could actually eliminate the need for a warehouse which takes up an enormous amount of space and uses tremendous amounts of energy.
Negative Impacts of E Commerce
So here is the catch. The International Conference on Environmental Science and Engineering says this: “although the potentials of the internet to save material and energy cannot be denied, it is too early to conclude that e-commerce has only positive impacts on the environment. Each potential positive impact is coupled with a potentially overwhelming negative impact as well.”
Back to transportation emissions: Even though the customers is reducing or eliminating carbon emissions by shopping online, the freight trucks that deliver the products certainly are. AND since there is a large emphasis in business on the importance of immediacy, especially in shipping, it is common for businesses to send out freights that are only partially full.
Packaging: All shipped items require some degree of packaging. And this packaging has created a massive cardboard foot print. Amazon revealed that in 2017 it shipped more than 5 billion items worldwide to Prime customers alone. And one company that sells reusable packaging said the growth of the shipping industry by 2021 will be equal to 1 billion trees consumed.
Returning Items: And then there is the problem of items that are returned. On a global scale, one of the primary business to consumers transactions are fashions. Over 1/3 of the online items purchased are returned in less than 3 months. This is one of the things that attracted attention to the consequences of online shopping. If an item is returned, you have essentially doubled the amount of transportation emissions as well as the packaging used. If a replacement item is shipped, then you have tripled the emissions and packaging. Depending on the product, the returned item may have to be disposed of instead of being resold.
Furthermore, special sales events such as Black Friday, Cyber Monday and others, place a significant burden on the environment due to the tremendous amount of packaging, shipping and delivery in a short time frame.
But despite these disadvantages E commerce is up by 77% from the year before. Which may sound fantastic. But according to the Environmental Defense Fund, this rapid growth of E-commerce presents some very clear risks:
Climate change
By now it is well known that product sourcing, manufacturing, transportation, use and disposal of the products we use are a major source of climate change. Fortunately, many companies are now under pressure to address these issues.
Toxicity Issues
Whether you realize it or not, 62% of the chemicals in consumer products are hazardous to human health and the environment. When you purchase something from an e-commerce platform you have no guarantee that the product is free of toxic chemicals. Furthermore, e-commerce retailers are not verifying the safety of the products they sell and are thereby avoiding responsibility and accountability.
But, if you look at this issue at face value, as some of the online giants have a tendency to do, it would seem rather obvious that purchasing something online, instead of driving to a physical location, would be more environmentally friendly. But, this issue is just not as black and white as it seems. All of this convenience still comes at a cost. Unseen to most shoppers, when you order something online, the back end work to simply get something to your door is a very intricate process.
But let’s take a moment and do a quick comparison of the different ways people obtain products, meaning the different ways people go shopping. Then you will clearly see the best alternative, and the most environmentally friendly means of purchasing.
The Traditional Shopper
The traditional way that most people shop is conducted entirely in person. This type of shopper searches for a product, makes a purchase, and if dissatisfied returns the product in person. E-commerce is not used in any way. Although this method of shopping is becoming a thing of the past, this type of completely offline process accounts for 75% of greenhouse emissions for obtaining a product with some minor emissions for packaging, returning of items and in house overhead for the retailer.
The Cyber Shopper
This type of shopper conducts business completely online. From product research, payment, and product return, all transactions are through the internet. In this case, the cyber shopper’s emissions are related to greater IT structure to support computing which in turn supports the e-commerce platform and increased packaging needs, and shipping needs of course.
Nevertheless, the cyber shopper has a carbon footprint approximately 50% less than the traditional shopper because they have completely bypassed travel to and from a place of business.
The Modern Shopper
While this comparison appears to be straight forward, the realty is that the modern shopper is a hybrid between the traditional shopper and the cyber shopper. This is because the modern shopper tends to utilize both a brick and mortar business and online services.
In fact, 48% of U.S. consumers look at products in a place of business before making a purchase online. This process of trying out a product in person before purchasing online is often referred to as “show rooming”. This of course increases a person’s carbon footprint because they first travel to a physical location before purchasing online. This completely off sets any reduction of their carbon footprint gained by purchasing sole online.
So with the modern shopper, the route to purchasing a product is rarely direct. In the past when it came to purchasing something, there was only one touch point, the point of transaction. But the behavior of the modern shopper creates multiple touch points prior to any transaction which of course negates any potential reduced impact created by shopping online.
The Impatient Modern Shopper
And now we get to the least environmentally friendly type of shopper, which is the impatient modern shopper. But to appreciate why our impatiences has such a significant environmental impact, you have to look at the logistics of the shipping world.
In 2005 Amazon introduced its “Prime” membership which offered two-day free shipping on eligible purchases for one annual flat fee. At the time, this type of rapid delivery was still a novel thing. However, at the time of this production, Amazon now has over 200 million prime members. Free two day shipping has now become common place which of course shifts the expectations of the modern shopper. This of course has given rise to the Impatient Modern Shopper.
But this rapid delivery that is so common place is not without environmental impact. This delivery makes it nearly impossible to combine shipments in the same areas. This in turn increases the distance driven per item and increases the carbon footprint as well. It is estimated that expedited delivery has twice the carbon foot print as non-expedited deliver which of course completely offsets any benefits from shopping online.
The Good News
By now you are likely wondering about which is more environmentally friendly, online shipping or going to a brick and mortar business?
Obviously, no matter what we do, we always create some sort of environmental footprint. And I got to wondering about this after I had unpacked several items that I’d order online and was sitting there looking at a pile of cardboard boxes and other packing material.
But the good news is that online shopping overall in the United States reduces our carbon footprint by 30%. Those working with an e-commerce employer often work at home instead of driving to and from a place of business. Distribution centers for a lot of e-commerce businesses are often close to major airports, thereby reducing the impact of transportation. Furthermore, often these distribution centers are in a much better position to incorporate renewable energy sources for running their businesses.
Obviously energy is still used when shipping products but the impact is significantly less than each person driving to and from a place of business. Electronic advertising, electronic receipts, and even newsletters reduce the paper trail.
The good news is that more and more modern consumers want transparency. They want to purchase from brands and companies that are committed to making a positive environmental impact. In fact, 65% of consumers these days expect companies to clearly explain the environmental benefits on product labels and websites. Furthermore, any astute company would realize that this is a good way to garner customer loyalty and build trust because more and more consumers want to purchase sustainable products.
Websites such as Ebay, ThreadUp, and Etsy contribute greatly to extending the lifespan of many products and help to reduce the number of purchases made.
The Bottom Line
Now I am finally going to get to the bottom line. If you are at all serious about reducing your carbon footprint, think about the following things:
-If look look at the numbers, e-commerce is better for the environment if the entire process is digital, meaning the process is all online, from start to finish.
-If you find it necessary to purchase something by going to a place of business, you can cut your environmental footprint by as much as 50% by first doing your product research online. This will limit the amount of driving and multiple trips to different businesses.
-If you have to go to a place of business to purchase something, combine your errands to accomplish multiple things at once. This is something that I commonly do because I live in somewhat of an isolated area.
-Opt for environmentally friendly packaging whenever you can. If at all possible recycle all packaging.
-Purchase products from responsible companies. Some of the largest environmental impacts are actually upstream in the supply chain, which means material sourcing and product manufacturing. Do your homework and make sure you are purchasing something from an eco-friendly company.
-Plan ahead and avoid ordering anything at the last minute. I almost never pay for expedited shipping because the majority of the time, anything I order online arrives before the estimated delivery date anyway.
Now the e-commerce platform is not perfect. But any astute business owner can clearly see that more and more people are wanting to purchase sustainable products. More and more people want to see businesses that are clear about the environmental impact of the products they produce and sell.
In closing, having a sustainable lifestyle is truly about making better choices. For example, just recently when I was picking apart my own lifestyle, I realized that our biggest environmental impact was from the driving that we do. It was then that I got a little creative and managed to reduce my commuting by almost 50%. And one of the things I did is I stopped leaving home specifically to do errands.
For us, the closet supermarket is 22 miles away. The closet gas station is 10 miles away. These days once I am at home, I do not leave. It is now rare for me to leave home for a one single errand unless I absolutely have no choice. I typically go to the supermarket or to the hardware store on days that I am working anyway. All I do is get out of bed about 30 early so I have the time to do errands on my way to work. This way when I get home at night or when I am off work, I rarely have to leave home for anything. This is my version of making better choices in one aspect of my own life and thereby reducing my environmental impact.
It is obvious that e-commerce is booming and here to stay. But just like anything else, your environmental impact depends greatly on the choices you make. I said in a recent episode that I got to wondering if there was anything I could do that had no environmental impact. And the answer to that of course is no. Everything we do impacts our world in some way. The bottom line is that if you really want to enjoy the benefits of online shopping, then be careful about your choices. It is that simple.
That is it for this week folks. This is your host Patrick signing off until next week. Always remember to live sustainably because this is how we build a better future.
Resources
Is e-commerce really better for the environment?
The Environmental Impact of E-Commerce in 2020
Positive and Negative Effects of E-Commerce
Environmental Impacts of E-commerce versus Retail
Online Shipping Boom Create Massive Cardboard Footprint
The Impact of E-Commerce on the Environment
Reasons People Buy Products Online
As Online Shopping Surges: E-Commerce Retailers Face Major Risks
