E-commerce businesses are adapting to sustainable efforts

Cornel Rautenbach, head of technology at Bob Group. Image supplied

The findings, released by the professional services multinational in May, are based on insights amassed over 15 years of consumer research by collecting the perspectives of more than 20,000 shoppers across 31 countries.

Forty-six percent of respondents said they were buying more sustainable products “as a way to reduce their personal impact on the environment”.

These shifting attitudes towards sustainability are not lost on South African e-commerce businesses, especially when one considers what is at stake thanks to the phenomenal growth of online shopping. In 2023, e-commerce accounted for over 5% of the country’s total retail of R1.153tn.

“E-commerce businesses are under pressure to adopt sustainable practices,” says Cornel Rautenbach, head of technology at Bob Group.

“Consumers are increasingly prioritising sustainability, and businesses that adopt green shipping practices can significantly boost their brand loyalty. When customers know that their favourite e-commerce stores or platforms are taking steps to reduce their environmental impact, they are more likely to continue shopping with them. Sustainable shipping practices can be a powerful differentiator in a crowded market.”

There are signs that local e-commerce businesses are adapting. One of the biggest areas of change is shipping, where advanced shipping software is benefiting the environment and sustainability efforts significantly.

According to Rautenbach, benefits include:

Improved address accuracy: By using address auto-completion and geocoding technology, drivers can find locations faster, improve the customer experience, and reduce the overall distance travelled.

Paper waybill reduction: All shipments and parcels are now being digitally managed and updated with a mobile app. It has been found that, on average, shipping software like Ship Logic reduces typical paper usage by 75%.

Failed attempts reduction: With more accurate location mapping and improved communication with clients, shipping software can decrease the possibility of failed collection and delivery attempts – saving valuable resources.

Carbon emission reduction: By optimising shipping routes and consolidating shipments, shipping software minimises the number of trips needed, leading to lower carbon emissions.

Rautenbach adds that route optimisation, a feature of modern shipping software, can substantially reduce environmental impact.

“By calculating the most efficient routes, the software minimises travel distances and fuel consumption. This not only cuts down on greenhouse gas emissions but also reduces wear and tear on vehicles, extending their lifespan and further contributing to sustainability,” he says.

Rautenbach points out that integrating sustainability into e-commerce shipping processes does not have to be complicated. An example of a quick win is offering pickup points as a delivery option at checkout.

By offering pickup points at checkout, buyers are given a convenient and more importantly, eco-friendly delivery option. In some countries, up to 80% of e-commerce deliveries are made to pickup points such as smart parcel lockers.

Since goods are delivered to a single destination, delivery vehicles are emitting less carbon into the atmosphere.

“Another way to enhance sustainability efforts is by choosing eco-friendly packaging. Traditional plastic packaging can take hundreds of years to decompose but by switching to biodegradable materials like plant-based plastics, which break down more quickly and naturally, a business can reduce its environmental impact. You should also ensure your packaging is recyclable, allowing customers to dispose of it responsibly.”

He further advises businesses to use as little plastic packaging as possible to protect shipped items. Sourcing eco-friendly packaging from local suppliers is also a must, as it reduces the carbon footprint associated with transporting materials long distances.

Consolidating orders to reduce the number of trips couriers need to make and using couriers that use modern and efficient shipping software should always be front of mind, he says.