Online Shopping vs. In-Store Purchases: What’s the Real Impact on CO₂ Emissions?
Ordering online and receiving your package seems almost miraculous when you estimate the needs. I will summarize all the steps of the supply chain in another post. But an e-commerce order requires at least e-logistics, logistics, transportation, planned routes, lead times, etc. According to a recent MIT study. , e-commerce reduces carbon emissions up to 3 times compared to in-store purchases. The process that an order requires before reaching its destination is complex and each step impacts the next. However, each improvement can reduce the amount of carbon emissions,but also improve competitiveness, reduce costs, shorten lead times (or vice versa). Tests on logistics stages can be done by sector (for example, speeding up the flow of deliveries with new routes or the flow of orders with new software)..
Our purchasing behavior, when we buy a product on an online e-commerce site or at a store (a physical point) and go there, largely determines the amount of CO2 emissions. The delivery method, whether at home or at a relay point, also influences the carbon rate. However, there are many more factors at play. Ecommerce have the advantage of offering 24/7 access, to check the stock availability of a product, to benefit from reductions (coupons), etc. Some of these benefits combine when we visit an e-commerce site to see product availability, but go to the store to purchase it.
Buying in Store, a More Ecological Choice than eCommerce? Analysis.
When purchasing in-store, almost ¾ of carbon emissions are emitted during transport. The 2nd emission emitter is that of the property for around 18%, that is to say the store, with its heating, air conditioning, lighting, etc. Customer returns and packaging account for a smaller share (7% for returns and 4% for packaging). Let's take a concrete case to analyze this data. We browse the e-commerce site of a department store and discover one product, then a second. They are in stock in the store. I can possibly buy it and collect it via Click & Collect (which is similar to e-commerce). But let's stick with a classic scenario where I go to the store to see the products, then buy them and take them home.
In this case, the products I purchased were transported, most often by cargo ship if they came from abroad (or the parts that were assembled in the country), possibly by train, then by truck. These transports are largely similar to e-commerce transport. However, the store requires a physical location close enough for the customer to get there.
Urban infrastructure plays an important role in carbon emissions. Is it easy to get to the center (if the store is in the center and not on the outskirts)? Are public transport means available, safe, pleasant and does the energy come from renewable sources? If I went to pick up my parcel on foot, this represents a 70% reduction compared to e-commerce. But this situation is only possible for some stores in a well-developed or small city and during my free hours if the store is open (check the common hours of your stores and your customers). Or if the customer is wealthy, has free time and lives in a privileged neighborhood. Of course, the parcel cannot be too big, nor too heavy either. Going to the store in an electric car can reduce your CO2 emissions by almost 40% when making a purchase. A hybrid vehicle reduces emissions almost as much.
These cases represent the complexity and our behavior when shopping in a store. Urban planning, the type and frequency of the store as well as its hours and the buyer's free time, the type of vehicle, as well as public transportation can quickly determine the behavior of customers and their amount of carbon emissions.
Your Online Business: Which Purchasing Method Best Limits Your Carbon Footprint Today?
If I compare this data with e-commerce, what figures are available to me? When buying online and having it delivered to your home, about 45% of emissions are due to packaging. The second factor is customer returns, which represent more than 25%.. Emissions emitted from warehouses and transportation are almost equivalent: 15% for property and 13% for transportation..
For example, you browse an e-commerce site, choose two products that you order and have delivered to your home. In this case, having ordered several packages reduces carbon emissions by 30%. If a solution existed for packaging, this would reduce emissions by a further 36%. Reusable packaging now exists (for example, La Poste Kickbag) Empty space is still a major problem in e-commerce. It represents around 24% of the volume of containers shipped by boat. Restricting returns would represent 13% and a solution for the last mile would reduce it by 10% (assuming that you collect your package at the relay point). In this situation, once your purchase is made, collecting your package on your way back brings a benefit in terms of carbon reduction because it eliminates a journey. But again, this is possible with the installation of relay points distributed in the city centre and on the outskirts and at transport hubs.
eCommerce and Urban planning: a New Ecological Challenge or an Accelerator of the Energy Transition?
These factors play an important role for the future of e-commerce and in-store purchasing. If the retailer electrifies all of its processes (with a solar – hydroelectric alternation for example), the e-commerce will also have to electrify its vehicles to remain competitive in carbon emissions.
Efficient urban planning, with nano-hub solutions at the entrance to cities as well as relay point solutions for the last mile also considerably reduce carbon emissions. And even more so, if the customer collects their packages on the way back. Buying several products at the same time also contributes to the impact on the climate. 3D augmented reality appears to reduce customer returns, but it is a recent technology and the perfect solution is still lacking for e-commerce packaging.
The Future of Retail: Can eCommerce and Physical Stores Coexist Sustainably?
Certain factors are clarifying our horizon. E-commerce is recent. So is the electrification of vehicles (private and commercial). The environment is competitive. We are much more aware of our carbon emissions and our impact on the environment. However, some strategies to reduce our emissions are more complex. Indeed, the distribution of department stores, the vast choice on e-commerce sites, urban planning, the logistics of nano-hubs on the outskirts as well as the number and location of relay points, the electrification of vehicles, public and road transport hubs, etc. are all factors. Some are simpler to implement, while others require more intense urban planning. The question of access to renewable energy, solar, hydroelectric and hydrogen remains a most important factor. As customers move toward fewer, more sustainable purchases, energy will play a crucial role in the coming years.
eCommerce and Carbon Emissions