Sustainable commerce

Sustainable commerce practices are especially important for e-commerce companies, where the use of new technologies and the logistics necessary for shipping products to consumers can have a large environmental impact. This is especially true as more commerce shifts from brick and mortar to online retailersretail.

For sustainable commerce, the shipping and logistics side can be as simple as working to reduce the overall carbon emissions of shipping a product to and from warehouses and to customers, either from a warehouse in an e-commerce solution or in a storefront. And, theThe use of either climate-neutral or environmentally friendly shipping solutions across a supply chain can reduce the overall carbon footprint of a product or a company.

Business efficiencies can be as simple as running offices and stores efficiently, either by implementing recycling programs, utilizing alternative energy sources, and using recycled materials where available.

This can also include practices such as offering augmented or virtual reality technologies that would allow users to see clothes or other products on their bodies prior to purchasing, and thereby reduce the volume of purchases and returns. However, this would remain limited based on the sophistication of the customers' technological capabilities. A simpler option would be for a retailer to offer clear and detailed information about a product so consumers can be better informed in their purchases. An alternative in the clothing example would be for a retailer to offer understandable and simplified color languages and detailed size specifications.

Businesses could also offer delivery points for consumers, or vice versa, so consumers in apartments, urban environments, or other hard-to-reach locations can have an assured delivery point. This would reduce missed deliveries, reduce the environmental impact of multiple delivery trips, and improve the overall efficiency of the delivery route. Companies can also offer order consolidation in the form of free shipping, such that a consumer may have to wait a little longer, but their order can be shipped in bulk and reduce the overall shipping costs, packaging costs, and carbon footprint of a purchase.

Other efficient business practices include offering augmented or virtual reality technologies that would allow users to see clothes or other products on their bodies or in their homes prior to purchasing, thereby reducing the volume of purchases and returns. However, this would remain limited based on the sophistication of the customers' technological capabilities. A simpler option would be for a retailer to offer clear and detailed information about a product so consumers can be better informed in their purchases. An alternative in the clothing example would be for a retailer to offer understandable and simplified color languages and detailed size specifications.

Businesses could also offer delivery points for consumers, or vice versa, so consumers in apartments, urban environments, or other hard-to-reach locations can have an assured delivery point. A delivery point would reduce missed deliveries, decrease the environmental impact of multiple delivery trips, and improve the overall efficiency of the delivery route. Companies can also offer order consolidation in the form of free shipping, such that a consumer may have to wait a little longer, but their order can be shipped in bulk and reduce the overall shipping costs, packaging costs, and carbon footprint of a purchase.

Packaging material companies can also find new ways to use previously wasted products. In some cases this includes reusing products, and in other cases this is finding new ways to reuse previously wasted productsmaterials. This can mean using compostable boxes, paper tape, and recyclingrecycled wrapping. Some companies have included prepaid mailing labels in order to encourage the consumer to return the packaging solution for the company to reuse. Other companies are developing packaging materials from materials such as corn starch, which breaks down completely in a short period of time.

Secondhand shopping, or thrift-shopping, especially in fashion, offers an alternative and sustainable commerce model. This allows companies to offer secondary services, such as curation services, to the consumer in place of offering novel products. As well, theseThese companies can reduce their environmental impact without having any need for storage facilities, and instead actingact as a facilitator for sales between sellers and buyers, similar to companies such as eBay or Etsy.

Recommerce is the selling and buying of open-box of non-new inventory. This offers retailers a way to keep goods out of landfills. This can also prolong the lifetime of products and reduce the number of new products manufactured for greater sustainability. Recommerce options, especially in the case of second-hand shopping, also workswork to encourage durability in products rather than disposability, which could, in turn, appeal to consumers who may be uninterested in purchasing used items, but still have a desire for durable products that will last them longer and also reduce their overall environmental impact.

The COVID-19 pandemic saw an increased use of e-commerce solutions. Close to 60 percent of shoppers during the 2020 holiday season purchased from online stores, whereas 30 percent of those same shoppers in 2019 accounted for only 30made percenttheir ofpurchases salesonline. And with With the increase of purchasingin online shopping has come with it an increasedincrease in concern onabout where products are sourced from and their sustainability. This includeincludes a 54 percent increase in consumers who have reported being willing to change their purchasing habits to reduce environmental impacts, with a reported 44 percent of consumers looking for more sustainable purchasing options.

Although sustainability is not self-evidently related to the COVID-19 pandemic, the possible increase of e-commerce and the related packaging, a more visual sign of the material demand of e-commerce, and the awareness of online tools available for interrogating and understanding the impact of products (be they social or environmental) has increased. Meanwhile, the concern over security of global supply chains in the wake of fears of the spread of the virus through shipping lines and the complete closure of those shipping lines due to local closures has led to greater interrogationinvestigation of outsourcing; this previously robust system that created efficiencies and interdependencies for firms has seemed more vulnerable during the COVID-19 pandemic and, in turn, led to a call for more sustainable business practices.

Based on increased pressure from students and from the industry, a growing number of business schools are expanding efforts to embed sustainability into courses and research. Previously, courses covering environmental impact, social impact, and sustainability topics were curriculum add-ons, whereas; these would work to make the topics have now been made mandatory towards graduation in some universities. A few schools are overhauling their master of business administration (MBA) degrees and requiring courses in sustainability. Other schools are revising core content to offer specializations and out-of-classroom learning opportunities so students can better understand sustainability.

Sustainable commerce refers to developing products or purchasing products that use sustainable materials (either organic, recycled, or natural) as well as ecological products for packaging and ecological solutions for shipping. For the consumer, sustainable commerce can include supporting local suppliers or vendors, which can overall reduce carbon emissions, especially if those retailers use sustainable commerce practices. Largely, theThe three tenantstenets of sustainable commerce include: social equity, economic viability, and environmental protection. A large consideration to a sustainable commerce model includes transparency throughout the product's lifecycle to help consumers feel good about their purchases.

As well, moving away from the popular "try-and-return" business model can reduce the waste involved in such a model. For example, in the beauty industry, a company such as Taobe has used samples based on a consumersconsumer's beauty profile to help consumers find the product whichthat fits their interest or goals. This offers to solve the same problems the "try-and-return" model tries to solve.

Recommerce is the selling and buying of open-box of non-new inventory. This offers retailers a way to keep goods out of landfills. This can also prolong the lifetime of products and reduce the number of new products manufactured for greater sustainability. Recommerce options, especially in the case of second-hand shopping, also works to encourage durability in products rather than disposability, which could, in turn, appeal to consumers who may be uninterested in purchasing used items, but still have a desire for durable products whichthat will last them longer and also reduce their overall environmental impact.

Although sustainability is not self-evidently related to the COVID-19 pandemic, the possible increase of e-commerce and the related packaging, a more visual sign of the material demand of e-commerce, and the awareness of online tools available for interrogating and understanding the impact of products (be they social or environmental) has increased. Meanwhile, the concern over security of global supply chains in the wake of fears of the spread of the virus through shipping lines and the complete closure of those shipping lines due to local closures has led to greater interrogation of outsourcing; this previously robust system whichthat created efficiencies and interdependencies for firms has seemed more vulnerable during the COVID-19 pandemic and, in turn, led to a call for more sustainable business practices.

Sustainable commerce refers to developing products or purchasing products that use sustainable materials (either organic, recycled, or natural) as well as ecological products for packaging and ecological solutions tofor shipping. For the consumer, sustainable commerce can include supporting local suppliers or vendors, which can overall reduce carbon emissions;, especially if those retailers use sustainable commerce practices. Largely, the three tenants of sustainable commerce include social equity, economic viability, and environmental protection. A large consideration to a sustainable commerce model includes transparency throughout the productsproduct's lifecycle to help consumers feel good about their purchases.

For sustainable commerce, the shipping and logistics side can be as simple as working to reduce the overall carbon emissions of shipping a product to and from warehouses and to customers, either from a warehouse in an e-commerce solution, or in a storefront. And, the use of either climate-neutral or environmentally friendly shipping solutions across a supply chain can reduce the overall carbon footprint of a product or a company.

With the increase of demand for transparency, retailers take on a greater risk of product liability, which can cause financial and reputational risk. This comes with consumer demands for safer products with greater transparency into the productsproduct supply chain and material sourcing. AndRetailers can, retailers can in turn, take steps and influence the sustainability of products and practices in their supply chain through investments, which can extend to investing in initiatives to accelerate the development of safer and more sustainable products.

Business efficiencies can be as simple as running offices and stores efficiently, either by implementing recycling programs, usingutilizing alternative energy sources, and using recycled materials where available.

This could can also include practices such as offering augmented or virtual reality technologies tothat would allow users to see clothes or other products on themtheir bodies prior to purchasing, and thereby reduce the overallvolume of purchases and returns;. althoughHowever, this would remain limited based on the sophistication of the customers' technological capabilities. Although,A simpler thanoption this,would be for a retailer canto offer clear and detailed information about a product in order thatso consumers can be better informed in their purchases. InAn alternative in the clothing example ofwould clothing,be anfor onlinea retailer, besides implementing a virtual or augmented reality system, couldto offer understandable orand simplified color languages and detailed size specifications.

As well,Businesses businessescould canalso offer delivery points for consumers, or vice versa, such that aso consumers in apartments or, urban environments, or otherwise busy, who may be unable to receive aother deliveryhard-to-reach locations can have an assured delivery point. This would reduce missed deliveries and, reduce the environmental impact of multiple delivery trips to a single location which, canand reduceimprove the overall efficiency of athe delivery route. And companiesCompanies can also offer order consolidation in the form of free shipping, such that a consumer may have to wait a little longer, but their order can be shipped in bulk and reduce the overall shipping costs, packaging costs, and carbon footprint of a purchase.

As well, a movemoving away from the popular "try-and-return" business model can reduce the waste involved in such a model. For example, in the beauty industry, a company such as TaobeTaobe has used samples based on a consumers beauty profile to help consumers find the product which fits their interest or goals. This offers to solve the same problems the "try-and-return" model tries to solve.

Perhaps the most readily understood part of sustainable commerce is the materials used for shipping products, either to a retailer or from an online retailer to a customer. The use of ecological or recyclable products for packaging can reduce the overall impact of shipping products. Meanwhile, some companies have offered consumers the option to plant trees at the time of purchase as a carbon offset. The problem of packaging also extends to a shipment being properly packaged to ensure the product arrives intact to further reduce returns and replacements and, in turn, reduce the overall impact of a purchase, both with transportation and landfill costs.

Packaging material companies can also find new ways to use previously wasted products. In some cases this includes reusing products, and in other cases this is finding new ways to reuse previously wasted products. This can mean using compostable boxes, paper tape, and recycling wrapping. Some companies have included prepaid mailing labels in order to encourage the consumer to return the packaging solution for the company to reuse. And otherOther companies are developing packaging materials from materials such as corn starch and, which breakbreaks down completely in a short period of time.

For companies in the sustainable commerce model, social equity includesinvolves working to provide positive change either in their organization or outside of the organization where possible. This includes having an ongoing commitment to employee enrichment opportunities, developing community through outreach projects and programs, educating employees and customers about sustainability, and, where possible, supporting local, fair trade, and socially responsible businesses.

Part ofSocial theseequity measures couldcan include offering customers transparency, if not visualization, of the supply chain of a product for a better consumer understanding. This wouldTransparency givegives the customer a better possible understanding of the cost of sourcing components or parts, where those pieces are supplied from, the potential labor conditions of those sources, the carbon footprint of shipping and sourcing those parts, and the overall environmental and social implications of the sale of a product.

The economic viability of sustainable commerce refers to the possibility of engaging consumers and developing sustainable ways of developing, selling, and shipping products to those customers. This likely includes the development and use of newer technologies to change how products are sold and consumed, and would also likely require a change in the mindset of consumers in how they interact with products.

There is a demand from consumerconsumers interested in sustainable commerce that companies to not promote profit over the environmental and social impact athe company can have. However, companies whichthat embrace sustainable commerce and related practices can increase consumer interest, with a reported 70 percent of global consumers willing to change their consumption habits to reduce the overall impact of their purchases.

Transparency into where products are sourced, who manufactures those products, where they travel from, how much those workers are paid and the percentage of the final cost of a product, as well how asmuch the markupprices ofare amarked companyup, and where the cost specifically comes from, isare important forfactors in how consumers can interact with a product,. andThese transparency factors are also important for how a company to consider in terms of how they can engage with consumers withabout atheir productproducts. This could also include developing applications to allow customers to set parameters and store preferences. These could include preferences for how customers want to shop, delivery speed, environmental impact, and allowallowing them to choose how they want to interact with the value chain of a product. For example, a customer could prefer to select a product sourced from a small, startup manufacturer rather than a global multinational. However, such a solution would require retailers and businesses to offer consumers data whichthat those retailers and businesses are traditionally hesitant to offer.

Secondhand shopping, or thrift-shopping, especially in fashion, offers an alternative and sustainable commerce model. This allows companies to offer secondary services, such as curation services, to the consumer in place of offering novel products. As well, these companies can reduce their environmental impact without having any need for storage facilities, and ratherinstead acting as a facilitator for sales between sellers and buyers, similar to companies such as EbayeBay or Etsy.

Recommerce is the selling and buying of open-box of non-new inventory. This offers retailers a way to keep goods out of landfills. This can also prolong the lifetime of products and reduce the number of new products manufactured for greater sustainability. Recommerce options, especially in the case of second-hand shopping, also works to encourage durability in products rather than disposability, which could, in turn, appeal to consumers who may be uninterested in purchasing used items, but still have a desire for durable products which will last them longer and in turnalso reduce their overall environmental impact.

The COVID-19 pandemic saw an increased use of e-commerce solutions. This has seen closeClose to 60 percent of shoppers during the 2020 holiday season purchasingpurchased from online stores, wherewhereas those same shoppers in 2019 accounted for only 30 percent of sales. And with the increase of purchasing online has come with it an increased concern on where products are sourced from and their sustainability. This include a 54 percent increase in consumers who have reported being willing to change their purchasing habits to reduce environmental impacts, with a furtherreported 44 percent of consumers reportedly looking for more sustainable purchasing options.

Based on increased pressure from students and from the industry, a growing number of business schools are expanding efforts to embed sustainability into courses and research. Previously, courses covering environmental, social impact, and sustainability topics were curriculum add-ons, whereas these would work to make the topics mandatory towards graduation. A few schools are overhauling their master of business administration (MBA) degrees in order toand requirerequiring courses in sustainability. Whereas, otherOther schools are revising core content to offer specializations and out-of-classroom learning opportunities so students can better understand sustainability.

For sustainable commerce, the shipping and logistics side can be as simple as working to reduce the overall carbon emissions of shipping a product to and from warehouses and to customers, either from a warehouse in an e-commerce solution, or in a storefront. And, the use of either climate-neutral or environmentally friendly shipping solutions across a supply chainsupply chain can reduce the overall carbon footprint of a product or company.

Sustainable commerce refers to developing products or purchasing products that use sustainable materials (either organic, recycled, or natural) as well as ecological products for packaging and ecological solutions to shipping. For the consumer, sustainable commerce can include supporting local suppliers or vendors which can overall reduce carbon emissions; especially if those retailers use sustainable commerce practices. Largely, the three tenants of sustainable commerce include social equity, economic viability, and environmental protection. A large consideration to a sustainable commerce model includes transparency throughout the products lifecycle to help consumers feel good about their purchases.

Typical breakdown of the triumvirate of concerns central to sustainable commerce.

Sustainable commerce practices are especially important for e-commerce companies, where the use of new technologies and the logistics necessary for shipping products to consumers can have a large environmental impact. This is especially true as more commerce shifts from brick and mortar to online retailers.

The environmental side of sustainable commerce includes shipping and logistics, business efficiencies, and packaging materials.

For sustainable commerce, the shipping and logistics side can be as simple as working to reduce the overall carbon emissions of shipping a product to and from warehouses and to customers, either from a warehouse in an e-commerce solution, or in a storefront. And, the use of either climate-neutral or environmentally friendly shipping solutions across a supply chain can reduce the overall carbon footprint of a product or company.

With the increase of demand for transparency, retailers take on greater risk of product liability, which can cause financial and reputational risk. This comes with consumer demands for safer products with greater transparency into the products supply chain and material sourcing. And, retailers can in turn take steps and influence the sustainability of products and practices in their supply chain through investments, which can extend to investing in initiatives to accelerate the development of safer and more sustainable products.

Business efficiencies can be as simple as running offices and stores efficiently, either by implementing recycling programs, using alternative energy sources, and using recycled materials where available.

This could also include practices such as offering augmented or virtual reality technologies to allow users to see clothes or other products on them and thereby reduce the overall purchases and returns; although this would remain limited based on the sophistication of the customers technological capabilities. Although, simpler than this, a retailer can offer clear and detailed information about a product in order that consumers can be better informed in their purchases. In the example of clothing, an online retailer, besides implementing a virtual or augmented reality system, could offer understandable or simplified color languages and detailed size specifications.

As well, businesses can offer delivery points for consumers, or vice versa, such that a consumers in apartments or urban environments, or otherwise busy, who may be unable to receive a delivery can have an assured delivery point. This would reduce missed deliveries and reduce the environmental impact of multiple delivery trips to a single location which can reduce the overall efficiency of a delivery route. And companies can also offer order consolidation in the form of free shipping, such that a consumer may have to wait a little longer, but their order can be shipped in bulk and reduce the overall shipping costs, packaging costs, and carbon footprint of a purchase.

As well, a move away from the popular "try-and-return" business model can reduce the waste involved in such a model. For example, in the beauty industry, a company such as Taobe has used samples based on a consumers beauty profile to help consumers find the product which fits their interest or goals. This offers to solve the same problems the "try-and-return" model tries to solve.

Perhaps the most readily understood part of sustainable commerce is the materials used for shipping products, either to a retailer or from an online retailer to a customer. The use of ecological or recyclable products for packaging can reduce the overall impact of shipping products. Meanwhile, some companies have offered consumers the option to plant trees at the time of purchase as a carbon offset. The problem of packaging also extends to a shipment being properly packaged to ensure the product arrives intact to further reduce returns and replacements and in turn reduce the overall impact of a purchase, both with transportation and landfill costs.

Example of packaging solutions designed to be biodegradable.

Packaging material companies can also find new ways to use previously wasted products. In some cases this includes reusing products and in other cases this is finding new ways to reuse previously wasted products. This can mean using compostable boxes, paper tape, and recycling wrapping. Some companies have included prepaid mailing labels in order to encourage the consumer to return the packaging solution for the company to reuse. And other companies are developing packaging materials from materials such as corn starch and which break down completely in a short period of time.

For companies in the sustainable commerce model, social equity includes working to provide positive change either in their organization or outside of the organization where possible. This includes having an ongoing commitment to employee enrichment opportunities, developing community through outreach projects and programs, educating employees and customers about sustainability, and, where possible, supporting local, fair trade, and socially responsible businesses.

Image of where the various parts of a pair of jeans are sourced from.

Part of these measures could include offering customers transparency, if not visualization, of the supply chain of a product for a better consumer understanding. This would give the customer a better possible understanding of the cost of sourcing components or parts, where those pieces are supplied from, the potential labor conditions of those sources, the carbon footprint of shipping and sourcing those parts, and the overall environmental and social implications of the sale of a product.

The economic viability of sustainable commerce refers to the possibility of engaging consumers and developing sustainable ways of developing, selling and shipping products to those customers. This likely includes the development and use of newer technologies to change how products are sold and consumed, and would also likely require a change in the mindset of consumers in how they interact with products.

There is a demand from consumer interested in sustainable commerce that companies to not promote profit over the environmental and social impact a company can have. However, companies which embrace sustainable commerce and related practices can increase consumer interest, with a reported 70 percent of global consumers willing to change their consumption habits to reduce the overall impact of their purchases.

An example of transparency in the pricing of a product.

Transparency into where products are sourced, who manufactures those products, where they travel from, how much those workers are paid and the percentage of the final cost of a product, as well as the markup of a company and where the cost comes from, is important for how consumers can interact with a product, and important for how a company can engage consumers with a product. This could also include developing applications to allow customers to set parameters and store preferences. These could include preferences for how customers want to shop, delivery speed, environmental impact, and allow them to choose how they want to interact with the value chain of a product. For example, a customer could prefer to select a product sourced from a small, startup manufacturer rather than a global multinational. However, such a solution would require retailers and businesses to offer consumers data which those retailers and businesses are traditionally hesitant to offer.

Alternative purchasing models, outside of a single-owner purchase, can offer consumers new ways to interact with products. Models such as pay-for-use, subscription, or leasing can offer different ways for products to maintain value through a lifetime. These models have been used already in the automotive, home entertainment, lighting, and high-end fashion industries. They offer a way for consumers to use items that are seldom or single-use items without purchasing it on their own and later throwing them out, but rather recycling them through a market so others with similar needs can use these items for a period of time.

Secondhand shopping, or thrift-shopping, especially in fashion, offers an alternative and sustainable commerce model. This allows companies to offer secondary services, such as curation services, to the consumer in place of offering novel products. As well, these companies can reduce their environmental impact without having any need for storage facilities, and rather acting as a facilitator for sales between sellers and buyers, similar to companies such as Ebay or Etsy.

Recommerce is the selling and buying of open-box of non-new inventory. This offers retailers a way to keep goods out of landfills. This can also prolong the lifetime of products and reduce the number of new products manufactured for greater sustainability. Recommerce options, especially in the case of second-hand shopping, also works to encourage durability in products rather than disposability, which could in turn, appeal to consumers who may be uninterested in purchasing used items, but still have a desire for durable products which will last them longer and in turn reduce their overall environmental impact.

The COVID-19 pandemic saw an increased use of e-commerce solutions. This has seen close to 60 percent of shoppers during the 2020 holiday season purchasing from online stores, where those same shoppers in 2019 accounted for only 30 percent of sales. And with the increase of purchasing online has come with it an increased concern on where products are sourced from and their sustainability. This include a 54 percent increase in consumers who have reported being willing to change their purchasing habits to reduce environmental impacts, with a further 44 percent of consumers reportedly looking for more sustainable purchasing options.

Although sustainability is not self-evidently related to the COVID-19 pandemic, the possible increase of e-commerce and the related packaging, a more visual sign of the material demand of e-commerce, and the awareness of online tools available for interrogating and understanding the impact of products (be they social or environmental) has increased. Meanwhile, the concern over security of global supply chains in the wake of fears of the spread of the virus through shipping lines and the complete closure of those shipping lines due to local closures has led to greater interrogation of outsourcing; this previously robust system which created efficiencies and interdependencies for firms has seemed more vulnerable during the COVID-19 pandemic and, in turn, led to a call for more sustainable business practices.

Based on increased pressure from students and from the industry, a growing number of business schools are expanding efforts to embed sustainability into courses and research. Previously, courses covering environmental, social impact, and sustainability topics were curriculum add-ons, whereas these would work to make the topics mandatory towards graduation. A few schools are overhauling their master of business administration (MBA) degrees in order to require courses in sustainability. Whereas, other schools are revising core content to offer specializations and out-of-classroom learning opportunities so students can better understand sustainability.