Sustainable E-Commerce: Definition, Examples & How To Do It

83%  of consumers favor brands with strong sustainability records. So, it’s clear that a sustainable e-commerce business will affect your bottom line.

As you consider ways to reduce waste and carbon emissions, you may find it hard to balance them with your prof-generating efforts. Upfront costs, complicated integrations, and uncertain returns on sustainable practices make it seem trickier than it is.

This article cuts through all that noise. It offers practical, tried-and-tested strategies to help you reduce waste, lower carbon emissions, and build a more sustainable e-commerce business without hurting your profitability.

What Is Sustainable E-Commerce & Why Does It Matter?

Sustainable e-commerce involves integrating eco-friendly practices into core business operations to reduce carbon footprint actively. It involves concrete steps to minimize environmental impact through waste reduction, sustainable sourcing, and energy-efficient operations.

With 55% of consumers willing to pay more for eco-friendly brands, there’s no excuse to not implement eco-friendly changes. Plus, you’ll enjoy:

• Reduced costs. For example, optimizing your supply chain to reduce waste will lower waste disposal costs and increase its efficiency.
• It will position your brand as a responsible, forward-thinking business that appeals to conscious consumers’ values. For example, the clothing brand Rapanui increased social media engagement by 300% with posts about sustainability efforts. This ultimately helped boost the brand’s reputation.
• Align your brand values with your customers’ eco-conscious values to strengthen relationships and drive repeat business. For example, going paperless isn’t just a cost-efficient measure; it’s a value-driven decision that resonates deeply with your audience. 
• Supports Corporate Social Responsibility (CSR). Your long-term sustainability initiatives drive your short-term socially responsible practices. For example, if your long-term goal is to reduce energy consumption by 50%, you can start by investing in solar power or energy-efficient infrastructure on a smaller scale. 

7 Innovative Sustainable E-Commerce Business Strategies (With Examples)

Building a sustainable business isn’t a one-time activity; it’s a continuous and evolving process. As you go through each strategy, identify the easiest one to apply and start from there.

1. Reduce Your Return Rate To Minimize Fuel Consumption & Packaging Waste

E-commerce returns contribute to 24 million metric tons of CO2 emissions every year. Lowering your return rate will directly reduce your carbon footprint and make your business more sustainable.

Here's what you need to do:

1.1. Optimize Your Post-Purchase Experience

This strategy minimizes returns and directly reduces carbon emissions associated with shipping. Plus, it reduces waste from returned products and packaging.

ReConvert is an excellent tool for this purpose. Use it to add personalized checkout upsells, one-click upsells, and thank-you page offers. This will reduce returns and the number of shipments for the same consumer.

This is particularly useful for electronic stores or similar businesses. For example, you can strategically recommend spare parts for elements that typically break during transit, batteries, or complementary products that most customers buy together on your website.

These targeted recommendations reduce waste linked with returns and unnecessary repeat shipments. They make sure that your customers get everything they need in one go and don’t have to return a damaged product.

You could also consider offering customers the option to offset the carbon emissions associated with their order. For example, sustainable apparel brand Tentree give customers the option to plant trees on their thank you page:

1.2. Create Digital 3D Models Of Your Products

This is especially useful for apparel brands whose customers typically order a couple of sizes of the same item to try on and return the ones that don't fit. Turn the 2D product images into 3D designs to realistically represent the fit and drape of your clothes. 

Also, digitize models that are wearing different sizes of the same item to make it easier for your customers to visualize what they would look like in real life.

You can also add virtual try-ons. ASOS’s "See My Fit" trial feature is a perfect example of this. This AR tool uses simulated item views to show ASOS shoppers what their clothing would look like in real life. This feature decreases the return rate which in turn reduces plastic usage and carbon emissions.

1.3. Create A Comprehensive Shipping Policy

Let your customers pick the best delivery time or pickup spot. With more control over their delivery, you will significantly reduce your number of missed deliveries. This means you will reduce your return costs and delivery-related return rates.

Here’s an excellent example you can look to: Green Supply's shipping policy. It outlines clear and efficient instructions and information for timely deliveries and flexibility so it’s easier to set your expectations on your deliveries and plan for them better. 

‍

Customers placing orders before 2 PM EST will know to be on the lookout for same-day deliveries. Plus, they use different fulfillment centers for different product lines for speedy deliveries.

2. Source Sustainable Products To Reduce Carbon Emissions

Sustainable products are made from biodegradable items, recycled materials, or other sustainable materials, and they have a 17% market share with a 32% share in overall market growth.

Do the following:

2.1. Create Sustainable Policies & Goals

Set clear, action-oriented, measurable goals and KPIs for sustainable e-commerce practices, including your product sourcing strategies. Make them as specific as possible, even if you're focusing on 1 element of your product sourcing, like 1 supplier or 1 part of your supply chain.

2.2. Set Clear Expectations With Suppliers

As you discuss your goals and KPIs with your existing suppliers, try to find out if they are willing to implement sustainable practices. If not, you can always look for other suppliers who already follow sustainable e-commerce practices.

Whatever path you take, be very clear about your expectations. Renew your contract or create a new one with your requirements clearly outlined.

2.3. Source Your Products Through Well-Known Platforms

If your current suppliers are not willing to make changes, you can directly source sustainable products through AppScenic. This platform is particularly great for dropshipping businesses. You can use it to transform your entire supply chain with eco-friendly shopping bags, reusable storage bags, and handmade bags.

The software has built-in apps for all major e-commerce platforms, including WooCommerce and Shopify. You can import products directly to your store without additional steps and tweak the descriptions directly in your catalogs.

A great alternative to this marketplace is CJDropshipping. The only drawback to this is that you will have to look for sustainable items manually. It lacks a dedicated sustainable e-commerce section like the one AppScenic offers.

3. Embed Sustainability Into Your Brand's Core Identity

Prioritize sustainability, environmental sustainability, and social responsibility when you're creating your branding strategies and guidelines. Highlight your sustainability initiatives and communicate your values for a more sustainable future.

Here's what you need to do:

3.1. Promote Environmental Sustainability Among Employees

Create a brand culture that aligns your overall values with the specific sustainable business practices you and your employees follow. Educate and train your employees on eco-friendly practices through seminars, workshops, and email newsletters.

For example, IKEA promotes environmental sustainability by offering its employees free bicycles to commute to work. Plus, they have charging stations for electric vehicles. If you want to start small, you can make small changes, like replacing your coffee cups with reusable ones.

3.2. Introduce Sustainability Internship Programs

Younger generations, especially Millennials, are more concerned about global warming. Introduce Sustainable internship programs that benefit both your business and the intern. Your sustainability intern's personal values will more closely align with your plans for sustainability efforts than any other employee's, making them a valuable addition to your team.

Here's an example of a Sustainability Summer Internship Program at Prosple to inspire you.

This program engages interns in solving real-world sustainable challenges. It offers them hands-on experience while contributing to the company's sustainability goals. These programs attract passionate young talent who can drive your sustainability initiatives forward.

3.3. Hire A Sustainability Marketing Manager

If sustainability is an integral part of your business, hire a dedicated Sustainability Marketing Manager. These professionals have the experience needed to develop and implement marketing strategies. Having them will make it easier to highlight your commitment to eco-friendly practices and connect with environmentally conscious consumers.

If this is your first time searching for candidates in this field, use the Sustainability Marketing Manager Job Description Generator and Template from Genius. 

You can use this tool to create custom job descriptions tailored to attract top talent who can drive your sustainability practices. It will help you hire a thoroughly-vetted and highly reliable professional who understands sustainability and knows how to market it effectively. They can align your brand with your target audience's values.

4. Optimize In-House Operations With Green Technologies

Green technologies include renewable energy sources and avoiding energy waste with efficient use of your electronics. These green technologies increase resource efficiency, reduce waste, and optimize your supply chain processes.

Here's what you must do:

4.1. Implement Renewable Energy Initiatives

Invest in renewable energy to reduce greenhouse gas emissions and contribute to the shift toward hydro, geothermal, wind, and solar power from fossil fuels. You don't have to transform your entire business's power supply to renewable energy in one go. Start small and focus on areas of your business where you notice the most energy waste or energy consumption.

If you want to start small, promote the practice of shutting down machinery, equipment, electronics, and all other energy-dependent items when they're not in use.

4.2. Develop Comprehensive Recycling & Circular Economy Programs

Circular economy programs reduce material use and redesign products and materials to be less resource-intensive. You can spot waste you can use to manufacture new products and materials.

For example, the fashion brand Ecoalf is built around the concept of waste reduction. They use everything, from coffee grinds to post-industrial cotton, worn-out tires, post-consumer plastic bottles, and even discarded fishing nets, to create entire lines of apparel and footwear.

4.3. Create An Energy Efficient & Functional Website

Your website runs on the Internet. With the rapid growth in internet usage, significant power consumption is inevitable. This has an enormous carbon footprint, which e-commerce businesses can address.

A user-friendly, energy-efficient, and SEO-optimized website reduces your environmental footprint and enhances user experience. SEO helps people find what they are looking for easily and quickly, reducing the time they spend browsing the web.

Ima Appweb's e-commerce development services will help you tackle all your energy-related website issues. In addition to SEO, they will enhance your user experience (UX), making it easier for your customers to navigate your website. Customers won't have to navigate to irrelevant pages that don't serve the right purpose.

4.4. Implement e-commerce localization to reduce carbon footprint

Localizing your e-commerce website helps reduce transportation distances by offering region-specific content and product availability. By targeting customers with localized shipping options and localized warehouses, you can cut down on international deliveries, lowering your overall carbon emissions.

For example, offering local languages, currencies, and regional product preferences not only improves the customer experience but also ensures that products don't travel unnecessarily long distances, which reduces fuel consumption and emissions.

5. Launch A Resale Program For Pre-Owned Products

Second-hand e-commerce businesses are booming, with a $448 billion industry revenue. This is especially true for clothing, footwear, and electronics categories. 

Here's what you can do:

5.1. Find High-Demand Resale Products

Use market research tools to analyze international markets and your competition in the second-hand industry to identify high-demand products in your niche. For example, if you own an outdoor gear business, you can find pre-owned hiking equipment or camping gear for your resale program.

The most popular choices are collectibles, fashion, and electronics. Focus on these categories for a high return on your investment with a steady stream of buyers.

5.2. Join Or Create A Reselling Community

Use Whop, to give you access to top-tier reselling communities. You can use it to find expert insider tips, access pricing errors, and find the best deals to flip for profit. These communities help you stay ahead of trends and maximize your resale profits.

5.3. Offer Incentives For Sustainable Practices

To encourage your customers to participate in your resale program, offer incentives like discounts on future purchases, early access to new releases, or store credit. You can also link this to an existing loyalty program and offer points to customers for their participation. This will reinforce your commitment to sustainability goals and boost customer participation. 

6. Innovate With Minimalistic & Sustainable Packaging

Use recyclable packaging, compostable materials, or other sustainable materials. Reduce the amount of wrapping you need to apply. For example, if a single bubble wrap can keep fragile items safe during transit, don't use 5 layers of wrapping paper.

Here are 2 more strategies you can copy:

6.1. Use Packaging That Doubles As Marketing

Your marketing posters and print marketing initiatives are likely creating as much carbon footprint as other elements. 

For example, create packaging that can transform into a reusable shopping bag or storage box. You can also add a second adhesive tape to your packages so your customers can reuse them if they want to return an item.

You can also explore partnerships with packaging companies specializing in compostable or biodegradable materials to reduce packaging waste.

6.2. Reduce Packaging Waste With Reduction Techniques

Review your current packaging to identify areas where materials can be minimized without compromising product safety. For example, picking the right-sized packaging or removing unnecessary fillers can reduce your environmental footprint. 

Look for businesses like EcoEnclose that offer customized packaging solutions for varying product dimensions. This will also reduce shipping costs and waste.

7. Offer Sustainable Shipping Options With Supply Chain Transparency

If you are introducing sustainable shipping as an option at an additional price, offer supply chain transparency too. This includes disclosing all the necessary information to your customers about:

• Labor practices
• Safety standards
• Product Quality
• Environment protection
• Source of raw materials

This will help your customers make better decisions on which shipping option to choose. Here are more strategies to implement:

7.1. Offer Transparent Shipping Options

Let your customers choose sustainable shipping methods at checkout. This can include slower shipping options that reduce emissions or partnering with carriers who follow eco-friendly practices. For example, Sendle is an excellent carbon-neutral shipping service provider for e-commerce businesses in the US, Canada, and Australia.

7.2. Track & Communicate Carbon Emissions

Track the carbon footprint of your shipping methods using technology and communicate this information to your customers. Transparency in your supply chain will build trust and reinforce your commitment to sustainability. 

EcoCart is a great checkout widget for calculating your shipment's environmental impact. Use it to let your customers see exactly how their shipping choices can make a difference.

Sustainable e-Commerce Wrap Up

Reflect on the strategies listed here and find the one with the most immediate environmental impact on your business. Which of them resonates the most with your current challenges?

As you refine your approach, remember to pay close attention to your customers' post-purchase experiences. Use ReConvert to optimize this phase and boost revenue through eco-friendly upsell opportunities. Get started for free and make your path to sustainability hurdle-free.

‍

Author Bio

Burkhard Berger is the founder of Novum™. He helps innovative B2B companies implement modern SEO strategies to scale their organic traffic to 1,000,000+ visitors per month. Curious about what your true traffic potential is?