Climate-friendly deliveries in e-commerce
Being interested in the newest trends in fashion, you order a couple more chic items, just to try them on and see if they fit. The fact that they are outrageously expensive and don’t even match the rest of your attire doesn’t matter right now. Free returns for items that are not wanted are offered by many sellers on a voluntary basis to increase customer loyalty – a service customers welcome with open arms.Along with shoes the clothing industry experiences a lot more returns than the classic retail – the law permits returns if a product does not satisfy or different sizes have been ordered. The reason for the return does not have to be stated in this case. But is this behaviour within the growing e-commerce environmentally save at all?
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The benefits of online shopping are quite obvious: fast and straightforward price comparison and product tests, weather conditions don’t matter because the purchase is made while sitting on a cozy couch, and finally, the sheer number and variety international online shops offer pose a delightful and pleasant shopping experience.
Of course classic retail with shops and big stores also has its advantages that customers continue to appreciate, including:
How much CO2 emissions is actually created by purchasing a product can be calculated on the basis of mileage and energy consumption of the means of transport, the average weight of a parcel and the quantity of acquired articles in each parcel or purchase. The focus of the DCTI study therefore concentrates on the transportation route of the articles within the logistics industry as well as on its way to the end customer.
The goods‘ way from the producer to the seller was not included in the study for both sales approaches, neither was the consumption for maintenance of shopping centres or storage facilities. The study’s focal point is the sales approach from the seller to the end customer and the different means of transport. Fresh produce and food were also not incorporated.
In direct comparison to online shopping it quickly becomes apparent that emission values of the purchases in standard retail, even considering different consumer behavioral patterns, are much higher than when a purchae is made online. It may be the case that more goods than needed are intentionally purchsed in webshops to try them out and, if required, return them. However the carbon footprint is much smaller than standard retail, despite returns being made!
This shocking result can be traced back to the fact that about 60 % of the individuals that are going to the city for shopping usually cover greater distances by car – according to an online survey of the DCTI in July 2015 that randomly asked 1,000 people about their shopping habits.
If customers are additionally supplied by retail, like it is the case with larger electric appliances, they usually drive to the store to choose the product, if it is necessary several shops are visited to compare offers. The second drive is done with the delivery. The amount of times a car is used to go shopping also plays an important role in determining CO2 emissions, furthermore less items are being transported when driving in person than when they are delivered by a professional delivery service.
Eventhough it might not be included in the DCTI study, it is also important to mention that new goods are distributed to several retail outlets, leftover products are collected or shipped back by the end of the season to create space for new goods.
The study divided the purchase behaviour into five groups, the modern, the conservative, the economical, the consumption-oriented and the demand-oriented. Each group has its own shopping preferences, their reliance on e-commerce has developed differently. Their tendency to return goods is also quite different.
Young people with an average of 24.7 years belong to the category modern, they live in urbanised areas and order online about 1 – 3 times a month. Even during the process of placing the order they already intent to return at least some of it, their tendency to send goods back is the strongest out of all groups.
The conservative is 63.5 years old on average, as senior citizens they receive a medium income from retirement and prefer to physically go to stores to do their shopping. They mostly use their own car to cover the distance to the shop.
Economical buyers are about 44.4 years old and often live in a household with a family. They live in rather rural areas and therefore use a car to reach more central shopping facilities. They slightly prefer actually visiting shops, however due to price comparison websites they also like to order online.
The consumption-oriented are 36.6 years old have a high net income due to their jobs. They live in the city and are therefore more likely to use a bicycle or public transport than other groups. Usually they still use a car to cover relatively short distances. They prefer standard retail more, because the goods are available right then and there.
Demand-oriented buyers are 53.2 years old on average and have a medium income. They heavily tend to physically visit shops when shopping. They attach great importance to checking the goods for their quality. About 12 percent say they might return the articles when placing the order online.
Despite their preferences for ordering goods and returning them each of these very individual groups caused a smaller carbon footprint than a standard “offline“ purchase. It doesn’t matter whether the goods they ordered were small to medium, such as clothing, books and smaller electronic appliances, or large deliveries, e.g. furniture.
There is a special type of CO2 pollution that is particularly common in online shopping, even though it can easily prevented: The goods cannot be delivered to the customers despite several attempts of the parcel service to do so, and the goods are not picked up at the post office afterwards. In this case the packages are returned to the sender..
Generally the transport process differentiates between pre-carriage, carriage and on-carriage. The pre-carriage describes the process of goods being transported from the central warehouse of the retailer to the main trade centre of the logistics company. Afterwards the goods are handed over to regional depots or parcel centres in the carriage. The last step, on-carriage, is when the goods are delivered to the stores of the retailer or the end customer in case of online shopping. This shows how similar the transport process is for both trading styles, stationary retail and e-commerce. In case of over the counter trade the drive from the customer’s home to the store also plays an important role, if goods are returned or a claim is made an additional drive has to be made.
Well-organised online retails have main trade centre directly on their premises, so that a whole route (pre-carriage) is saved.
Online retailers are also advised to improve their environmental balance, such as employing eco-friendly parcel services.
Other tips include using recycled packaging material and going for smaller packages when the contents are allow it. (The standard retail might consume less packaging material in terms of cardboard boxes, but needless to say a much higher amount of plastic bags and short-lived store decoration is required.)
Exact item descriptions with detailed pictures and explanatory product videos prevent a rather vague presentation of the goods, and finally, returned parcels. A comprehensive advisory service should be delivered by phone or at least an FAQ page should be implemented so that customers are informed sufficiently.
Even parcel services can behave more eco.friendly: Improved customer contact and precise agreements for delivery times ensure that less delivery attempts are required, it has also proven to be useful to delivery parcels to neighbours or alternative delivery places, such as the bakery across the street. Investing in eco-friendly vehicles and using new transport concepts such as carsharing will make shopping even more green in the future.
Image sources:
Blog cover picture: Pixabay.com,© falco CCO Public Domain
Shopping cart on Pixabay.com, © geralt CCO Public Domain
Creoven.de
Screenshots by courtesy of http://www.dcti.de/
- Popular online shopping – convenient and safe
- DCTI study about climate friendly purchase
- How CO2 emissions are produced
- Why so many returns are made
- Reduce greenhouse gases with modern logistics
- Tips for climate-friendly consumer behaviour
Popular online shopping – convenient and safe
Online shopping enjoys great popularity. Even goods we use every day, such as sanitary products or groceries, can conveniently be ordered from home, and show up on the doorstep within a few days or even overnight. Thanks to thoroughly tested systems and many sources with customer reviews the payment is becoming more and more secure for the consumer. The faith in e-commerce grows –the younger generation in particular takes part in the joyful world of online shopping.
More conservative consumers currently see the online retail merely as a good addition to classic retail, however there is a strong potential for future growth. In 2016 it is expected that large quantities will be ordered over the internet within the furniture industry. Media articles such as books and small electric devices have already conquered e-commerce as their top outlet, 77 and 62 percent respectively of those products are purchased online. For the younger internet-savvy generation online shopping has already become an inherent part of their lives, and a decisive factor in consumer behaviour.
The benefits of online shopping are quite obvious: fast and straightforward price comparison and product tests, weather conditions don’t matter because the purchase is made while sitting on a cozy couch, and finally, the sheer number and variety international online shops offer pose a delightful and pleasant shopping experience.
Of course classic retail with shops and big stores also has its advantages that customers continue to appreciate, including:
- touching, testing or trying on the goods
- personalised sales advisory service and specialised staff
- directly taking the goods home and using them
- social experience of shopping together
DCTI study about climate friendly purchase
The DCTI doesn’t believe in trivial black-and-white thinking and wanted to the bottom of this subject! In an independent study conducted in October 2015 the institute compared stationary retail and online shopping in cooperatio with Otto Group and Hermes. The focal point of the study was to find out which purchase behaviour results in higher CO2 emission on the transport way, therefore being more harmful to the environment: buying online while taking into account packaging material, delivery and potential returns or the direct purchase in a store. Both smaller articles that can be sent by mail as well as large products were considered, and the results are quite the surprise! The independent DCTI deals with the subject of sustainability. It is employed to create a better understanding for this topic and to present new conclusions which serve as a basis for and stimulate discussion.How CO2 emissions are produced
In scientific terms, greenhouses gases such as carbon dioxide are a bond of two parts oxygen and one part carbon. Dissolved in water we encounter it in sparkling – carbonated – drinks, its solid shape is known as dry ice. It occurs in nature as a gas in the air, but ever since the industrialisation and motorisation it is also increasingly produced by us humans. This increased emission results in the so-called greenhouse effect. The temperature of the planet’s atmosphere is rising which affects climate all around the world. Based on quantity the gas is actually the biggest cause for global warming, in the year 2014 it accounted for roughly 88 percent of greenhouse gas emissions. That is why it is so important to reduce man-made CO2 emissions by making conscious political decisions and rethinking technology. End customers also contribute to the development of the emission values with their buying decisons.How much CO2 emissions is actually created by purchasing a product can be calculated on the basis of mileage and energy consumption of the means of transport, the average weight of a parcel and the quantity of acquired articles in each parcel or purchase. The focus of the DCTI study therefore concentrates on the transportation route of the articles within the logistics industry as well as on its way to the end customer.
The goods‘ way from the producer to the seller was not included in the study for both sales approaches, neither was the consumption for maintenance of shopping centres or storage facilities. The study’s focal point is the sales approach from the seller to the end customer and the different means of transport. Fresh produce and food were also not incorporated.
In direct comparison to online shopping it quickly becomes apparent that emission values of the purchases in standard retail, even considering different consumer behavioral patterns, are much higher than when a purchae is made online. It may be the case that more goods than needed are intentionally purchsed in webshops to try them out and, if required, return them. However the carbon footprint is much smaller than standard retail, despite returns being made!
This shocking result can be traced back to the fact that about 60 % of the individuals that are going to the city for shopping usually cover greater distances by car – according to an online survey of the DCTI in July 2015 that randomly asked 1,000 people about their shopping habits.
If customers are additionally supplied by retail, like it is the case with larger electric appliances, they usually drive to the store to choose the product, if it is necessary several shops are visited to compare offers. The second drive is done with the delivery. The amount of times a car is used to go shopping also plays an important role in determining CO2 emissions, furthermore less items are being transported when driving in person than when they are delivered by a professional delivery service.
Eventhough it might not be included in the DCTI study, it is also important to mention that new goods are distributed to several retail outlets, leftover products are collected or shipped back by the end of the season to create space for new goods.
Why so many returns are made
In terms of distance selling a right of withdrawal is regulated by law so that customers can return the goods within 14 days without stating a reason. The standard retail however is only obligated to take goods back if the material defect can actually be proven, accepting returns due to a non-satisfactory nature of the product is not part of the standard procedure – mostly the seller takes goods back out of goodwill in these cases. Stricter laws for consumer protection in e-commerce have been implemented, because buyers don’t have a chance to check and evaluate the goods before the purchase. As it turns out, however, the virtually risk-free online ordering process increasingly tempts customers to order more goods than actually needed. In case of clothing and shoes ordering several sizes is not prohibited by law, and therefore a common practice. Many sellers offer returns at their own expense as part of their marketing strategy. In the end, it depends on personal behaviour and social trends if and how customers are using their right of return.
The study divided the purchase behaviour into five groups, the modern, the conservative, the economical, the consumption-oriented and the demand-oriented. Each group has its own shopping preferences, their reliance on e-commerce has developed differently. Their tendency to return goods is also quite different.
Young people with an average of 24.7 years belong to the category modern, they live in urbanised areas and order online about 1 – 3 times a month. Even during the process of placing the order they already intent to return at least some of it, their tendency to send goods back is the strongest out of all groups.
The conservative is 63.5 years old on average, as senior citizens they receive a medium income from retirement and prefer to physically go to stores to do their shopping. They mostly use their own car to cover the distance to the shop.
Economical buyers are about 44.4 years old and often live in a household with a family. They live in rather rural areas and therefore use a car to reach more central shopping facilities. They slightly prefer actually visiting shops, however due to price comparison websites they also like to order online.
The consumption-oriented are 36.6 years old have a high net income due to their jobs. They live in the city and are therefore more likely to use a bicycle or public transport than other groups. Usually they still use a car to cover relatively short distances. They prefer standard retail more, because the goods are available right then and there.
Demand-oriented buyers are 53.2 years old on average and have a medium income. They heavily tend to physically visit shops when shopping. They attach great importance to checking the goods for their quality. About 12 percent say they might return the articles when placing the order online.
Despite their preferences for ordering goods and returning them each of these very individual groups caused a smaller carbon footprint than a standard “offline“ purchase. It doesn’t matter whether the goods they ordered were small to medium, such as clothing, books and smaller electronic appliances, or large deliveries, e.g. furniture.
Reduce greenhouse gases with modern logistics
If the processes of transport and stock are connected by modern outbound logistics, delivery vehicles of online retailers and parcel services are loaded to save as much space as possible, so that several customers can be supplied on the same route. Stocking the goods in central parcels offices further reduces the need to drive from one home to the other. According to the study however only 10% of shoppers are using stocks in post offices.There is a special type of CO2 pollution that is particularly common in online shopping, even though it can easily prevented: The goods cannot be delivered to the customers despite several attempts of the parcel service to do so, and the goods are not picked up at the post office afterwards. In this case the packages are returned to the sender..
Generally the transport process differentiates between pre-carriage, carriage and on-carriage. The pre-carriage describes the process of goods being transported from the central warehouse of the retailer to the main trade centre of the logistics company. Afterwards the goods are handed over to regional depots or parcel centres in the carriage. The last step, on-carriage, is when the goods are delivered to the stores of the retailer or the end customer in case of online shopping. This shows how similar the transport process is for both trading styles, stationary retail and e-commerce. In case of over the counter trade the drive from the customer’s home to the store also plays an important role, if goods are returned or a claim is made an additional drive has to be made.
Well-organised online retails have main trade centre directly on their premises, so that a whole route (pre-carriage) is saved.
Tips for climate-friendly consumer behaviour
There is a lot you as an end customer can do to prevent strain on the environment: when shopping in the city try to walk, ride a bicycle or use public transport such as the bus or train. For e-commerce it is recommended to have the parcels delivered to a central post office, this saves the excess consumption the drive to your home poses. When picking up the parcel, however, again try to find an eco-friendly means of transportation. Only order things you actually want to keep to prevent unnecessary returns. Accept parcels for your neighbours, thereby preventing further delivery attemps made by the parcel service.Online retailers are also advised to improve their environmental balance, such as employing eco-friendly parcel services.
Other tips include using recycled packaging material and going for smaller packages when the contents are allow it. (The standard retail might consume less packaging material in terms of cardboard boxes, but needless to say a much higher amount of plastic bags and short-lived store decoration is required.)
Exact item descriptions with detailed pictures and explanatory product videos prevent a rather vague presentation of the goods, and finally, returned parcels. A comprehensive advisory service should be delivered by phone or at least an FAQ page should be implemented so that customers are informed sufficiently.
Even parcel services can behave more eco.friendly: Improved customer contact and precise agreements for delivery times ensure that less delivery attempts are required, it has also proven to be useful to delivery parcels to neighbours or alternative delivery places, such as the bakery across the street. Investing in eco-friendly vehicles and using new transport concepts such as carsharing will make shopping even more green in the future.
Image sources:
Blog cover picture: Pixabay.com,© falco CCO Public Domain
Shopping cart on Pixabay.com, © geralt CCO Public Domain
Creoven.de
Screenshots by courtesy of http://www.dcti.de/
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