E-commerce is a major pillar of international trade, allowing retailers of all sizes to access consumers worldwide. Sadly, the convenience of e-commerce often comes at a cost to the environment, littering the Earth with packaging materials and pushing carbon emissions higher as shippers move packages across the globe.
As a Certified B Corporation, AMS Fulfillment offers environmentally friendly solutions to help e-commerce retailers address these concerns. AMS is a sustainability-focused operation committed to helping retailers meet their e-commerce shipping needs. We incorporate the latest technology and eco-friendly practices to help our clients meet environmental and business goals. If you’re ready to make your operation more environmentally friendly, use these eight tips to enhance your company’s sustainability in e-commerce shipping.
Tip #1: Choose Eco-Friendly Packaging Materials
In a study conducted by McKinsey, approximately one-third of U.S. consumers reported concerns about the environmental impact of product packaging. Recyclability of these materials is their primary concern.
Marine litter, waste handling, air and water pollution, deforestation, and resource depletion are among the primary packaging concerns for consumers, and for good reason. Humans produce more than 430 million tons of plastic every year, and much of this packaging ends up in the world’s marine environment.
The U.S. Environmental Protection Agency reports that 28.1% of all solid waste in the U.S. is from packaging materials. Cardboard and paper make up the largest portion of packaging waste; nearly 20 million tons annually.
To address packaging waste concerns, consider using biodegradable and compostable materials such as cornstarch, cardboard, mushrooms, and seaweed. These eco-friendly packaging materials decompose into safe, natural components. You can also incorporate recycled cardboard, plastic, paper, glass, and metal materials into your packaging to reduce your overall waste footprint.
Tip #2: Implement Sustainable Shipping Methods
A major advantage of e-commerce is the ability to secure goods from anywhere in the world. Retailers use a variety of transport methods to get their products to consumers quickly, including airplanes, ships, trains, and commercial trucks. According to the U.S. Department of Transportation’s 2024 report, these freight methods account for 31% of all transportation-related emissions annually.
Reduce your eCommerce business’s carbon footprint by investing in fuel-efficient alternatives to traditional shipping methods. If your operation is large, consider investing in an EV fleet or small light-duty vehicles to handle local and urban deliveries. For long-distance and international shipping, consolidate your packages for freight train shipping. Freight trains are three to four times more fuel-efficient than trucks, leading to significantly lower carbon emissions.
Utilize Carbon Offsetting Programs
You can also use carbon offsetting programs that calculate your operation’s carbon footprint and collect contributions from customers to counter your emissions. Offsetting projects may include reforestation, conservation, renewable energy, and clean water programs.
Tip #3: Embrace Innovative Logistics Solutions
Use sustainable logistics solutions to streamline your eCommerce fulfillment. The most expensive and resource-intensive step for eCommerce deliveries is the final delivery from a local distribution center to the customer. This step, called “last-mile delivery,” poses numerous challenges for eCommerce businesses, including traffic congestion, frequent stops, and missed deliveries.
Streamline Last-Mile Delivery
To streamline your last-mile delivery process, use route optimization software to establish the most efficient delivery routes. Incorporate trackers that allow the customer to see where their package is, so they can be there when it arrives. You may also consider using automated alternative delivery options such as drones or parcel lockers, particularly in urban areas.
Tip #4: Promote Reuse and Recycling Initiatives
Encourage your customers to participate in reuse and recycling initiatives by establishing a take-back program for packaging. To create a successful take-back program, establish an easy way for your customers to responsibly return your packaging by mail or in a designated location. Your company collects the materials and either reuses, recycles, or disposes of them appropriately.
Cell phone companies have been successfully using such programs for years. They collect used cell phones and then refurbish and sell them at a discount to their customers. With the right application, you can get multiple uses out of packaging products and keep the materials in circulation for as long as possible, rather than sending them to landfills.
Tip #5: Collaborate With Sustainable Carriers
To improve your e-commerce sustainability, work with sustainable, eco-conscious partners such as AMS Fulfillment. As a B Corp fulfillment company, AMS has the unique opportunity to make an impact by reducing waste, maximizing recycling, packaging orders efficiently, and discarding materials responsibly.
Share Sustainability Metrics
We help keep your eco-friendly initiatives on track with state-of-the-art technology systems and fulfillment automation that ensures quick, efficient, and sustainable delivery. Throughout the fulfillment process, we track and share your sustainability metrics, so you can monitor the impact of your sustainability initiatives and adjust your strategy accordingly.
Tip #6: Enhance Supply Chain Transparency
As you incorporate sustainable practices into your operations, share your sustainability metrics for waste reduction, carbon offsets, and energy savings with your customers, investors, employees, and business partners.
Track and Report Environmental Impact
Tracking and reporting on your company’s environmental impact and sustainable supply chain keeps your customers, employees, and partners aware of and invested in your sustainability performance.
Build Trust With Consumers
Transparency also builds consumer trust and brand loyalty. Customers appreciate brand transparency and honesty. In fact, studies indicate that Gen Z and millennial consumers are 27% more likely to buy products from sustainable brands. Moreover, 54% of Gen Z employees want to see more sustainable business practices from their employers.
On the other hand, 54% of global consumers do not trust brands that claim to be sustainable without providing evidence, so it pays to be honest and thorough. Foster brand trust and employee loyalty by providing clear, verifiable data about your sustainability practices.
Tip #7: Educate and Engage Customers
According to a study, 75% of U.S. consumers prioritize sustainable lifestyle choices. With sustainability at the forefront of people’s minds, it’s easier than ever for retailers to shift to an eco-friendly model while keeping consumers engaged.
Communicate Eco-Friendly Practices
Encourage customer engagement by clearly communicating the impact of your sustainability practices with data-backed success stories, honest discussions about your challenges, and a commitment to continuous improvement throughout your sustainability journey.
Your transparency can increase consumer demand even if it means they are paying a higher price for your product.
Provide Incentives for Sustainable Choices
You can further encourage customer loyalty and engagement by providing incentives such as coupons, rebates, or free products, in exchange for making sustainable choices like returning packaging or opting for slower ground shipping.
Tip #8: Measure and Analyze Sustainability Efforts
Sustainability is an ongoing approach that requires regular analysis and course correction.
Set Clear, Achievable Goals
To establish a successful sustainability initiative, start with clear, achievable goals. These goals may include receiving a specific percentage of packaging returns, reducing overall packaging waste, or improving energy efficiency by a specific percentage through streamlined package distribution.
Use Data To Drive Continuous Improvement
Once you begin achieving your goals, focus on continuous improvement. Your business must continue to adopt and adapt your e-commerce shipping practices to remain sustainable and competitive. As technology improves, sustainable e-commerce business owners are likely to see more demanding requirements for greenhouse gas emissions, ethical product sourcing, and waste reduction.
You can stay ahead of the game by using data to drive continuous improvement. Advanced data analysis identifies areas where your company falls short. Whether you’re dealing with inefficient deliveries, oversized packaging, or excessive waste, data analysis software lets you pinpoint, monitor, and correct issues as they arise.
How AMS Fulfillment Supports Your E-Commerce Sustainability Initiatives
At AMS Fulfillment, we have the resources, technology, and scale to deliver cost-effective shipping solutions that meet your sustainability goals. We fulfill orders from bi-coastal facilities capable of shipping tens of thousands of e-commerce products daily.
Our operation handles high-volume e-commerce shipping, complex B2B and retail routing, and comprehensive operational services. You can trust us to take care of returns, refurbishment, kitting, assembly, inventory, and quality control while you focus on growing and developing your brand.
As a certified B Corp, our focus is on creating sustainable, efficient solutions using nimble warehouse automation. To facilitate sustainable operations, our proprietary fulfillment technology provides efficient inventory management, streamlined order processing, flexible fulfillment, and data-driven operation optimization. Contact us today to find out how our advanced fulfillment systems can help you achieve your e-commerce sustainability goals.
