Best Practices for Sustainable eCommerce Logistics

Green logistics is not just a trend in eCommerce. It is a reality that impacts the environment, sales and costs.

Environmental impact of eCommerce logistics

The first step to achieving a significant reduction in the environmental impact of eCommerce is to identify the areas where the greatest amount of carbon emissions are produced. According to a report by the European Environment Agency, transport is responsible for around 25% of all greenhouse gas emissions in the European Union, with road transport being the largest contributor. The report also highlights that e-commerce logistics can generate more carbon emissions per delivery than traditional retail.

Other studies claim that between 35% and 65% of the carbon footprint of the logistics process occurs in the first and last mile, meaning that this is where the focus should be on improving the relationship with the environment.

To address the challenges presented by the pollution caused by eCommerce logistics, companies must apply sustainable practices to all of their logistics operations. This includes the use of sustainable transport options, reduction of carbon emissions, environmentally friendly packaging and warehousing among others, known as green logistics.

Green logistics for eCommerce businesses

Green logistics (also known as sustainable logistics or environmental logistics) is a supply chain management approach that seeks to minimise the environmental impact of logistics and freight transport activities.

This approach focuses on reducing greenhouse gas emissions, optimising transport routes, reducing waste, and using sustainable practices in warehouse management and product distribution.

Green logistics also focuses on the use of clean technologies and renewable energies for mobility and vehicle operation and the application of responsible practices in supplier selection and waste management.

In short, green logistics aims to ensure that supply chain management is conducted in an environmentally responsible manner, which benefits both business and society at large.

Sustainable transport options for eCommerce companies

Choosing sustainable transport options for eCommerce logistics is crucial to reduce the environmental impact. Here are some of the options:

Electric vehicles: electric vehicles are becoming increasingly popular as a sustainable transport option for eCommerce logistics. They are a much cleaner alternative to traditional fuel-powered vehicles. They emit fewer greenhouse gases, lower operating costs, and less noise pollution. Another interesting option can be hybrid vehicles, which combine fuel with electricity, thus halving emissions vs. a traditional gas vehicle.
Rail transport: rail transport is one of the most environmentally friendly options for long-distance shipments and oversized goods. It is an energy-efficient mode of transportation that helps reduce carbon emissions.
Freight bikes: freight bikes are an interesting option for reducing emissions in last-mile deliveries. They are particularly efficient in urban areas with high traffic congestion, where they can provide faster and more efficient delivery.·

How to reduce the carbon footprint of your eCommerce through green logistics

Among the different green logistics options that eCommerce companies can opt for are the following:

1. Low carbon deliveries: taking into account that most of the emissions are produced in the first and last mile, it is at this point where improvements should be made progressively. Typically, these miles are in urban areas, where the use of combustion vans is the most commonly used option. A transition to more concentrated pick-up and delivery routes and alternative options such as bicycles or electric vehicles options will be increasingly necessary. Another option to reduce the environmental impact of eCommerce is to offer eco-certified shipping options to customers. Studies show that 70% of consumers would be willing to pay extra for eco-certified shipping.

2. Backhaul: a form of logistics planning that basically consists of using the empty spaces of a transport vehicle that is returning to its original destination. In this way, both the outbound and return journeys are utilised, minimising transport costs and increase efficiency with the same number of vehicles and journeys. Finding logistics partners that take this planning into account, as discussed in the article "How eCommerce companies can reduce their carbon footprint" should be a priority when selecting a logistics company.

3. Grouped delivery and collection point delivery: These options help to reduce the number of trips required to deliver parcels to customers. In the case of grouped delivery, it involves sending several parcels in a single shipment rather than sending each packet to a customer individually. In the case of pick-up point delivery, it allows customers to pick up their parcels at a site close to their location rather than at home.

4. Bulk loads: Although this measure is more geared towards large eCommerce companies, it should make us reflect on the importance of centralising shipments. This method of loading involves combined efforts to reduce the use of pallets and increase the occupancy rate of trucks by up to 25%.

5. Implement green procurement practices: Green procurement practices are about buying products and services that have a lower environmental impact. It consists of seeking suppliers and logistics partners that are environmentally friendly, such as the use of biodegradable packaging materials, energy-efficient lighting, etc.

6. Encourage sustainable consumption among customers: a very important action that eCommerce companies can work on is to promote sustainable behaviour among consumers by encouraging them to make sustainable choices. Following on from the previous points, the objective would be to encourage consumers through marketing and communication actions to take actions such as choosing environmentally friendly packaging or opting for slower delivery times that consume less fuel.

7. Offsetting emissions: through private funds to support reforestation and research projects to reduce logistics emissions.

Green warehouses: how eCommerce businesses can make their warehouses more sustainable

Green warehouses and sustainable packaging play a key role in reducing the environmental impact of eCommerce logistics. Here are some practices you can apply to make your eCommerce business more sustainable:

Harnessing natural light and/or energy-efficient lighting: using energy-efficient light bulbs, such as LED bulbs, can significantly reduce energy consumption in warehouses. LED lights are more efficient, consume less energy and last longer than more traditional lighting systems. In addition, you will notice savings on your electricity bill thanks to reduced energy consumption.
Renewable energy sources: use renewable energy sources such as solar or wind to power warehouses. It is increasingly common to find warehouses with their own installation of solar panels or wind turbines to generate the electricity needed for warehouse operations, reducing reliance on non-renewable energy sources.
Efficient heating and cooling systems: A large part of the energy consumed in warehouses goes to heating and cooling systems. Using options such as geothermal heating or cooling will help reduce energy consumption and carbon footprint.
Installing insulation: In line with the previous point, installing good insulation to block the transmission of heat and cold can help reduce the energy used to acclimatise spaces. Warehouses are often large and difficult to maintain at stable temperatures.
Biodegradable packaging materials: Using biodegradable packaging materials such as compostable plastics will help reduce environmental impact. Working with materials that decompose naturally will also avoid the production of waste.
Reusable packaging: opting for packaging that customers can reuse such as refillable containers or returnable packaging will help reduce waste and promote sustainability.
Smaller and lighter packaging: using smaller and lighter packaging options will help to reduce the material needed to package products and can lead to a reduction in transport costs and therefore gas emissions.

How are brands adapting to sustainable logistics?

Among the success stories we can name of companies that have made the transition to green logistics, the following stand out:

Inditex

Inditex was a pioneer in green logistics before starting its e-commerce journey, by using backhaul to redistribute merchandise between its points of sale. This distribution strategy made them market leaders at the time. Now, by applying it directly to their eCommerce strategy, they have managed to significantly reduce their CO2 emissions and are at the forefront of companies using green logistics. In addition, they have green warehouses optimised for maximum efficiency. Technological innovation also plays an important role in their sustainability strategy, with the implementation of an ERP garment identification system that helps to improve and avoid unnecessary shipments.

IKEA

IKEA has implemented several sustainable logistics practices to reduce its carbon footprint, such as using electric delivery vehicles and switching to renewable energy sources for its operations. In addition, IKEA has implemented a circular supply chain initiative that encourages customers to return used products for recycling and reuse. They are also leaders in optimising the packaging they use to package their products.

Zalando

Zalando is a European marketplace that has launched several initiatives to move towards sustainable logistics and reduce its environmental impact. These initiatives include the use of electric delivery vehicles, the optimisation of delivery routes and the signing of agreements with logistics providers that prioritise sustainability.

In addition, Zalando has launched a carbon footprint offsetting programme that supports renewable energy projects around the world.

The North Face

A specialist outdoor clothing company, The North Face has taken significant steps towards green logistics for its brand. Initiatives have included the use of renewable energy in its warehouses and shops, agreements with sustainable logistics providers and the implementation of a circular supply chain initiative that encourages customers to return used products for recycling and reuse.

Beneficios de implementar la logística verde en tu eCommerce

Thus, the benefits of implementing sustainable logistics are multiple for eCommerce companies as they impact different stakeholders of the company and its environment. These are some of the main benefits of implementing sustainable logistics in your eCommerce:

Reducing carbon footprint. Minimising energy consumption, optimising transport and delivery routes and reducing waste will have a direct impact on improving the company's carbon footprint.
Cost savings. Sustainable logistics practices can help reduce the costs associated with transport, storage and packaging. For example, optimising delivery routes and consolidating shipments can reduce transportation costs, while using energy-efficient lighting and heating systems can reduce energy bills.
Customer loyalty. Consumers are increasingly environmentally conscious and are more willing to support companies that implement sustainable practices. By promoting sustainable initiatives you can attract environmentally conscious customers and increase their loyalty.
Improved brand image. The implementation of sustainable logistics practices will help improve the image of your eCommerce and show a real commitment to sustainability and the environment. These actions can help you differentiate yourself from the competition and attract new customers.
Regulatory compliance. More and more countries are implementing regulations and guidelines that require companies to implement sustainable practices. Staying ahead of these regulations will help you avoid penalties and be able to adapt to these changes in time.

As you can see, green logistics has a very promising future. Now you just need to get down to work and start taking steps towards sustainability in eCommerce.