Why Canadian eCommerce Companies Must Embrace Sustainability

The shift to more sustainable practices is becoming increasingly important in the modern eCommerce landscape. For example, Sustainable Biz Canada reported that "Canadians (at 58%) slightly outpace the global average in their preference for a more sustainable way to return retail goods, according to a study from Mississauga-based Internet of Things (IoT) solutions provider SOTI Inc."

Canadian companies must recognize this trend and develop strategies to leverage sustainability as a competitive advantage over their online rivals.

In this article, we'll explore why sustainability is becoming so important to the industry, as well as some of the ways Canadian eCommerce companies can embrace sustainability.

Sustainability as an eCommerce Imperative

Embracing actionable tactics that prioritize environmental impact and corporate social responsibility can enable Canadian businesses to tap into a growing consumer base seeking ethically sourced products free of harsh chemicals or other pollutants. Numerous studies have indicated that sustainability is more than just the right thing for companies to do—it makes good business sense.

The World Economic Forum reported that "sustainability reduces costs and can affect operating profits by up to 60%, according to McKinsey & Company. Being sustainable also increases productivity as a Deloitte study shows that companies with an inclusive culture have a 27% higher profitability and a 22% greater productivity."

Although eCommerce operations function almost entirely online, they still have a significant environmental footprint through their delivery and supply networks. Manufacturers engaged in direct-to-consumer eCommerce sales must also take their physical plants and infrastructure into account.

Thankfully, there are several ways eCommerce companies can improve their sustainability.

Eco-Friendly Packaging

eCommerce companies can use sustainable packing options like biodegradable packaging, eco-friendly bubble wrap, or reusable shipping containers to reduce their carbon footprint. Additionally, by providing customers with the option to return or exchange unwanted items easily—without excessive paperwork and transport costs associated with returns—companies can eliminate unnecessary waste from their operations.

Energy-Efficient Warehouses

Many eCommerce companies tend to rely heavily on warehouses for their operations. Canadian businesses should be mindful of the fact that lighting, ventilation, and air conditioning in these facilities can account for up to 80% of total energy consumption. By switching to energy-efficient LED lights, installing motion sensors in warehouses, and utilizing HVAC systems with improved efficiency ratings, companies can significantly reduce their energy usage.

Recycling Programs

Corporate recycling programs can be an effective way of reducing waste and encouraging customers to make sustainable purchases. By offering incentives for customers who return packaging materials and products, businesses can also incentivize their customers to partake in the recycling process while simultaneously minimizing waste.

Sustainable Product Sourcing

Perhaps most importantly, eCommerce companies must look to their supply chains to ensure that their suppliers are using sustainable practices. By committing to ecologically friendly production and shipping processes, businesses can reduce their carbon footprints while also giving customers peace of mind when making purchases.

Obtaining more visibility into suppliers' operations can be challenging, but it is key to measuring the sustainability of the entire eCommerce operation, from the moment materials are sourced for the product, to its manufacture, sale, and delivery. Companies can achieve better supply chain visibility by investing in technology solutions that track and trace products throughout the supply chain.

Don’t Miss the Next eTail Canada Event

There are many steps eCommerce companies can take to become more sustainable. These are just a few of the ideas that companies are pursuing.

If you’d like to learn more, sustainability will be an important topic at the next eTail Canada event. It’s happening from September 27th to 28th at the Hyatt Regency Toronto in Toronto, Ontario.

Download the agenda and register for the event today.