E-commerce has been growing increasingly popular across the world. In 2020, there were 256 million digital purchasers in the United States alone; by 2024, this figure is expected to rise by about 22 million. In 2020, Canada recorded e-commerce retail trade sales of approximately 29.9 billion USD.
E-commerce is now widely used as a quick and convenient means of sending goods and services both locally and internationally. Due to the massive and quick growth of e-commerce, businesses, and organizations are placing a lot of emphasis on the production of inexpensive goods. Also, they are putting effort into developing efficient processes and practices that increase output with little expense or effort.
E-commerce is the cornerstone of economic progress in many countries, including Canada. The rapid expansion of e-commerce is the foundation for several positive as well as detrimental effects on the environment. Let’s take a closer look at this impact. As an e-commerce company, we are keenly interested in our environmental impact and sustainability in general. Check out our articles on sustainable mobility.
Retail E-commerce Revenue in Canada in 2020
Monthly Retail E-commerce Sales Value In Canada
In this article:
2. Assessment of the Challenges
3. The Future of Sustainable E-commerce
1 Looking on the Bright Side
In addition to improving a country’s economy, e-commerce may also serve to reduce its carbon impact. According to a global survey conducted by Generation IM, e-commerce is 17% more eco-friendly than traditional retail outlets. Product transit, buildings, warehouses, product packaging, and manufacturing are all examples of carbon-efficient business practices.
- Emissions and Carbon Footprint: Organizations can do business without physically commuting thanks to some innovative management theories. Transportation is responsible for a huge amount of harmful emissions/pollution, and you may lower your carbon footprint by minimizing your organization’s reliance on it. Furthermore, allowing workers to work from home allows e-commerce companies to reduce their carbon impact even further.
- Paper & E-waste: Most businesses generate paper trash. When information is conveyed digitally, it eliminates the demand for physical paper in the workplace. This can help a company’s carbon footprint by lowering (or eliminating) paper waste. Paperless business models have a variety of advantages and can be realized throughthe use of e-commerce capabilities.
- Virtual Archives: The digital flow of information, along with manufacturing technologies, has the potential to remove warehouses and enable on-demand production. Warehouses may be an environmental concern that is not widely known among the general public. Warehouses take up a lot of space, and freight trucks moving to and from them can pollute the air, cause pavement/road damage, pollute the noise, and cause traffic safety hazards.
2 Assessment of the Challenges
A thorough look at e-commerce’s environmental implications rapidly reveals that the seemingly positive effects reveal only half of the entire picture. Every potential beneficial influence is accompanied by a seemingly negative impact.
Moving business online, for example, can minimize waste such as printed catalogues, store space, and shipping costs, but we must instead construct more energy-intensive computers! Web-based marketing may encourage frivolous rather than prudent spending. Indeed, the Internet has already greatly expanded worldwide mass manufacturing of different things. People spend more because of the convenience of online shopping. In terms of energy usage, faster delivery needs tend to result in vehicles traveling half empty. E-commerce also favors speedier transit options, which can significantly increase fuel usage.
Making these technologies resistant to potentially negative effects on the environment and people is necessary.
3 The Future of Sustainable E-commerce
The future of sustainable e-commerce seems to alter its course on a daily basis, that’s how dynamic the sector is.
- Packaging: Organizations must develop novel packaging solutions. What a package is composed of is just as significant as how it is built and transported.
- Shipping: Because the need for immediacy is at an all-time high, it is even more critical to work out strategies in order to reduce the consequences of shipping. Aside from developing more environmentally friendly packaging, businesses may benefit from paperless invoicing.
- Reduced energy waste: This category is broad and includes a range of business considerations such as converting to solar or outsourcing specialized tasks locally, but there should be an urgent emphasis on transportation waste. Amazon, for example, unveiled its electric delivery truck in an effort to achieve zero net carbon emissions by 2040.
The overwhelming sustainability and massive technical developments have not only brought about fundamental changes in the economic system but also had far-reaching environmental consequences, for better or worse.
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