{"id":75091,"date":"2023-02-09T10:18:21","date_gmt":"2023-02-09T15:18:21","guid":{"rendered":"https:\/\/www.radial.com\/?post_type=insight&#038;p=75091"},"modified":"2025-05-15T08:49:20","modified_gmt":"2025-05-15T12:49:20","slug":"the-impact-of-sustainability-on-e-commerce-fulfillment-operations","status":"publish","type":"insight","link":"https:\/\/www.radial.com\/eur\/insights\/the-impact-of-sustainability-on-e-commerce-fulfillment-operations","title":{"rendered":"The Impact of Sustainability on E-commerce Fulfillment Operations"},"content":{"rendered":"\n<div class=\"interior-page-block-area\">\n\t\n<div class=\"core-paragraph-block\">\n<p>Retail and e-commerce for many years have had a major impact on the environment through manufacturing, supply chain emissions, excessive packaging, and more. Aware of their impact, retailers know they can drive meaningful change. As consumer demand for sustainability grows, brands must act to earn trust and loyalty.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Retailers like Amazon and Walmart are leading among large retailers who have made climate pledges and are taking action to reach net zero carbon footprints. While <a href=\"https:\/\/www.radial.com\/eur\/ecommerce-fulfillment\/fulfillment-solutions\">e-commerce fulfillment<\/a> is one of the largest areas that generates waste and carbon emissions, it is also an area where retailers have the most control. With a sharp rise in online shopping since the pandemic, retailers are doubling down on their sustainability initiatives.<\/p>\n<\/div>\n\n\n\n<div class=\"image\">\n\t\t\t<picture>\r\n<source data-image-size=\"image_block_small\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/23\/conveyor-with-parcels-jpeg-wordpress-picture-564x360.jpg\" media=\"(max-width: 600px)\" type=\"image\/jpeg\">\r\n<source data-image-size=\"image_block_large\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/23\/conveyor-with-parcels-jpeg-wordpress-picture.jpg\" type=\"image\/jpeg\">\r\n<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/23\/conveyor-with-parcels-jpeg-wordpress-picture.jpg\">\r\n<\/picture>\t\t\t\t\t<div class=\"image__caption\">\n\t\t\t\t<p>Radial Europe, <a href=\"https:\/\/www.radial.com\/eur\/insights\/inside-radials-polish-powerhouse-with-tomasz\">Warsaw Fulfillment Site, Poland<\/a><\/p>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>Do consumers really care?<\/strong><\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Yes, they do. A recent study found that <a href=\"https:\/\/www.businesswire.com\/news\/home\/20211014005090\/en\/Recent-Study-Reveals-More-Than-a-Third-of-Global-Consumers-Are-Willing-to-Pay-More-for-Sustainability-as-Demand-Grows-for-Environmentally-Friendly-Alternatives\" target=\"_blank\" rel=\"noreferrer noopener\">60% of global consumers rank sustainability as an important purchase criterion,<\/a> and <a href=\"https:\/\/www.cleanlink.com\/news\/article\/Survey-Do-Consumers-Value-Sustainability-Based-Products--28560\" target=\"_blank\" rel=\"noreferrer noopener\">70% of US consumers say they will change brands if they discover the brand is not operating in a sustainable way<\/a>. The word &#8220;sustainability&#8221; means different things to different people, but generally includes reducing waste, recycling, using eco-friendly materials, cutting greenhouse gas emissions, and using ethical labour practices.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Further, a 2021 IBM study found that <a href=\"https:\/\/www.ibm.com\/thought-leadership\/institute-business-value\/report\/2022-sustainability-consumer-research\" target=\"_blank\" rel=\"noreferrer noopener\">51% of consumers say they care more about sustainability than they did in the prior 12 months<\/a> and nearly half are willing to pay 59% more for eco-friendly products. This consumer sentiment makes it clear that sustainability isn\u2019t only good for the environment; it\u2019s also good for business.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>What\u2019s important to consumers<\/strong><\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Consumers care about retailers\u2019 overall sustainability practices, but it\u2019s the ones that directly impact shoppers that carry the most weight. Typically, this involves sustainable and recyclable packaging. In the US, <a href=\"https:\/\/www.ibm.com\/thought-leadership\/institute-business-value\/report\/2022-sustainability-consumer-research\" target=\"_blank\" rel=\"noreferrer noopener\">cardboard boxes used for shipping packages account for one billion trees annually<\/a>, demonstrating how just this one aspect alone affects the environment in a profound way.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>And it\u2019s not just cardboard. According to Statista, <a href=\"https:\/\/www.statista.com\/statistics\/1262381\/e-commerce-plastic-packaging-waste-by-country\/\" target=\"_blank\" rel=\"noreferrer noopener\">in 2019, the Chinese eCommerce industry produced about 488 million pounds of plastic packaging waste<\/a>. That same year, the estimated worldwide amount of plastic packaging waste produced by e-commerce fulfillment activities surpassed two billion pounds. Statista predicts this amount will double by 2025.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>Where can retailers drive change?<\/strong><\/p>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li><strong>Packaging.<\/strong> Many consumers will have received a small item in an oversized box packed with wasteful materials at some point. Since they\u2019re left to dispose of it, packaging has become a key concern. Customers now expect smarter, more sustainable shipping\u2014right-sized boxes, compostable materials, and eco-friendly packaging all shape the unboxing experience.<br><br>Customers expect orders to arrive intact, creating a challenge for brands to protect products while cutting packaging waste. Reusable packaging and partnerships with eco-focused manufacturers offer a smart path forward. <br><br>In addition, customers expect orders to arrive intact, creating a challenge for brands to protect products while cutting packaging waste. Reusable packaging and partnerships with eco-focused manufacturers offer a smart path forward.<br><\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li><strong>Transportation.<\/strong> Logistics drives a major share of retail\u2019s carbon footprint. To cut emissions, retailers can consolidate shipments, use store fulfillment, and place fulfillment centers closer to customers. Combining deliveries with <a href=\"https:\/\/www.radial.com\/eur\/insights\/how-to-turn-returns-into-profits\">returns <\/a>on the same trucks also helps. Radial\u2019s parent, bpost, is boosting efficiency by using larger freight haulers to move 60% more packages per route.<br><br><\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"image\">\n\t\t\t<picture>\r\n<source data-image-size=\"image_block_small\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/09\/Halle-hands-box-pink-paper-564x360.jpg\" media=\"(max-width: 600px)\" type=\"image\/jpeg\">\r\n<source data-image-size=\"image_block_large\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/09\/Halle-hands-box-pink-paper.jpg\" type=\"image\/jpeg\">\r\n<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.radial.com\/wp-content\/uploads\/2025\/04\/09\/Halle-hands-box-pink-paper.jpg\">\r\n<\/picture>\t\t\t<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li><strong>Fulfillment centers.<\/strong> Sustainable fulfillment covers warehousing, order processing, shipping, and returns. Fulfillment centers can cut waste by using <a href=\"https:\/\/www.radial.com\/eur\/insights\/automation-for-fashion-customers\">automation<\/a>, right-sized packaging, and order grouping. Cloud-based order management systems are key\u2014they boost efficiency, give <a href=\"https:\/\/www.radial.com\/eur\/insights\/inventory-management-optimization\">real-time inventory visibility<\/a>, and help optimize routing to reduce waste.<br><\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li><strong>Supply chain alignment.<\/strong> Sustainable e-commerce fulfillment takes everyone working together with a common commitment to eco-friendly practices and reducing environmental impact. Retailers can exercise their responsibility by choosing suppliers, manufacturers, fulfillment partners, and shippers that align with their common values on environmental issues and agree on their power to make an impact.<br><br><\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><strong>Ensuring e-commerce fulfillment providers align with sustainability principles<\/strong><\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>E-commerce retailers that operate their own fulfillment centers have direct control over their eco-impact. However, for those that partner with third-party logistics providers, ensuring that these partners support and complement their sustainability practices is critical.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Fulfillment partners should demonstrate their own commitment to reducing environmental impact and work with retailers to align on initiatives (e.g., leveraging robotics and making sustainable packaging choices). Kitting and aggregating orders to reduce waste is also important. Fulfillment partners should also support retailers\u2019 efforts to market their initiatives with information on packaging.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>When choosing a fulfillment partner, retailers need to clearly outline their sustainability commitments and requirements, and make sure both companies are working in sync toward common goals. Together, they can reduce waste, decrease environmental harm, and meet customers\u2019 expectations for more sustainable business practices.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p><a href=\"https:\/\/www.radial.com\/eur\/why-radial\/values-sustainability\">Learn how Radial supports sustainability<\/a> and delivers world-class <a href=\"https:\/\/www.radial.com\/eur\/ecommerce-fulfillment\/fulfillment-solutions\">e-commerce fulfillment<\/a>.<\/p>\n<\/div>\n\n\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"featured_media":73610,"template":"","insight_type":[],"solution":[399],"class_list":["post-75091","insight","type-insight","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/75091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":4,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/75091\/revisions"}],"predecessor-version":[{"id":75442,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/75091\/revisions\/75442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media\/73610"}],"wp:attachment":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media?parent=75091"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight_type?post=75091"},{"taxonomy":"solution","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/solution?post=75091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}