Commercial Feature
Turning sustainability into a competitive advantage in e-commerce
Brands have approached sustainability as a trend ― creating visually appealing campaigns and shifting their plastic products to apparent recyclable materials. Unfortunately, many companies have failed to be eco-friendly and have practiced (willingly or not) greenwashing, a marketing strategy that appears more sustainable than it is.
These practices eventually betrayed customers’ trust and loyalty, but businesses could’ve taken advantage of sustainability and ridden the wave by being genuine in their approach. Corporate social responsibility (CSR) and green objectives are more beneficial to a company than it seems, and e-commerce could greatly benefit from a fresh new start with responsibility and sustainable practices.
However, poorly defined strategies, resistance to change, and unrealistic expectations are common motives for companies’ lack of a proper approach to sustainability. They could successfully turn it into a competitive advantage, and here’s how.
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Study SGDs that make sense for your brand
The 17 Sustainable Development Goals are targets that organisations work towards achieving, from creating sustainable cities and communities to enhancing responsible consumption. Your e-commerce business doesn’t have to check all of them, but aiming toward a few will make the difference among competitors.
For example, working with collaborators who value sustainable consumption and production patterns is one step ahead of being eco-friendly. Look for a green fulfilment partner whose services are comprised of cost-effective scaling and enhanced customer experience to ensure business growth and customer loyalty. You could also help promote inclusive and sustainable economic progress in your area.
Plan your implementation strategy
Creating a green marketing campaign is easy, but sticking to eco-friendly practices is what makes the difference. As a leader, you must gather your team to brainstorm implementation ideas on making sustainability practical and actionable.
Whether you decide to optimise your warehouse management system with Monta or focus on meeting the needs of a niche market, you need an action plan. This will allow better management in real-time and will also offer time to respond to unforeseen events. When installing a new marketing or sales strategy, there’s no certainty of its success, but running it is the only way to find out.
Work on your customer experience
Customer experience is vital to e-commerce companies because it builds brand recognition and establishes meaningful connections with clients. Moreover, qualitative CX increases conversions, but improving it can be challenging.
Considering we’re in the middle of a fast-paced technological dynamic between companies and users, personalising their purchasing experiences is key to turning them into loyal customers. Targeted marketing or customised product recommendations will surely make people return to your business. Ideally, your e-commerce brand should access an omnichannel to benefit from a seamless experience.
Invest in technology that matters
As a sustainable e-commerce, working with outdated software and hardware will affect productivity flow. On the other hand, if you invest in technology that meets environmental needs (waste minimisation, carbon reduction, fair trade), you automatically have a competitive advantage.
For example, having an energy-efficient infrastructure can minimise carbon emissions in devices when no one uses them. Warehouses with low-energy consumption bulbs or sensors-based installations consume less electricity. Management based on cloud technology is more sustainable and efficient than the on-premise model.
Change your packaging techniques
Approaching sustainable packaging seems easy but can be challenging due to increased upfront costs. According to the European Commission, every inhabitant generates about 186.5 kg of packaging waste yearly, including paper and cardboard, plastic, and glass.
Your e-commerce business can be different by offering biodegradable packaging that’s less detrimental to the environment. Mushroom-based mycelium, corn starch, and bamboo are common alternatives to cardboard packaging. You could also minimise the packaging materials by ensuring the product receives the right-sized packaging option.
Opt for superior labelling
Labelling is important, but it also contributes to waste. Eco-friendly techniques include reducing paper consumption by offering only the essential data on the label to save material. Besides other sustainable materials, some companies integrate QR codes for users to scan the products’ information.
An innovative option includes thermal printers, whose label cartridges include compostable potato starch options. Thermal printing is fast, easy, and eco-friendly, and it also has much better print quality than regular printing.
Watch where you’re sourcing materials from
As our e-commerce business expands, it might be more difficult to analyse every sourcing deal with collaborators, but actively choosing sustainable ones will help reach the sustainability goal faster. For example, try sourcing recyclable raw materials, as most can be reused many times before becoming truly unusable.
You can support the local community by sourcing from the nearest wholesalers. This way, you can also save on fuel consumption for your business. If that is not possible, you can source ethically by choosing other brands whose views share yours. Check their certifications and supply chain transparency to ensure you’re working with the right guys.
On navigating the challenges of sustainability
While you may earn a sustainable competitive advantage, reaching your goal can be difficult. For example, accessing a transparent and traceable supply chain is far from becoming a reality because the complexity of these systems and logistics constraints might always be present.
On the other hand, tracking and reporting comprehensive sustainability metrics takes time, and management usually lacks the patience to wait for the results. This field of operation is somewhat new to companies, so they need more expertise and professionals to navigate this issue.
Being sustainable is also pretty tricky if the team does not share the same views as the management. Leaders face challenges in cultivating a long-term perspective of being eco-friendly, and gathering a trustable team is equally challenging.
Finally, climate change is a pressing matter that always seems to aggravate. Decades of manufacturing and carelessness are making it difficult for modern brands to make a difference and slow it down, so it can be discouraging to see your efforts are small.
Can your business reach a competitive advantage in terms of sustainability?
The business industry is a fast-paced ecosystem in which having a competitive advantage is a matter of being present in trends. However, true sustainability goes beyond that. It encompasses all efforts to use less energy, approach renewable resources, and be more inclusive. Brands can have this advantage if they truly shift the pattern and plan an implementation strategy the right way.
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