As online shopping rates remain high due to the impacts of Covid, sustainability is more important to Australian consumers than ever before, with 63 per cent stating they would gladly pay more for an environmentally-friendly delivery service.
A new research report, titled Sustainability in the Australian Retail Supply Chain, commissioned by Manhattan Associates, Shippit and Greener and in partnership with the National Retail Association (NRA) and NORA, also revealed 60 per cent of Australians are open to receiving a delivery later if it meant it was delivered more sustainably.
“Due to the ongoing impacts of the pandemic, and its convenience, home delivery is now the preferred delivery option for 69 per cent of Australian online shoppers,” said Raghav Sibal, managing director, ANZ, Manhattan Associates.
“However, consumers are not prepared to just accept the convenience of delivery at the cost of the environment, and they are increasingly aware of the growing impact the e-commerce sector is having on CO2 emissions.”
Over half (60%) of Australian consumers indicated they often received their online order in multiple shipments, and 81 per cent of them said that they think this is an inefficient and unsustainable way of delivering goods.
In fact, the same number (81%) also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery.
A further 64 per cent of consumers stated that they would be even more motivated to accept a longer delivery wait time – with all purchases consolidated into one package – if the delivery fee was free or discounted.
“For many years now, the predominant consumer pressure on retailers across the globe has revolved around how they can deliver goods even faster, leading to massive gains in same or next day delivery windows,” explained Sibal.
“Yet, what this research is showing is that the issue of sustainability might be gaining traction as a circuit breaker for this consumer obsession with delivery speed.”
Leading courier aggregator Shippit has collected data from deliveries across Australia, spanning over 2.2 billion kilometres to measure how much carbon is generated by its courier partners from the moment a parcel is picked up to when it’s delivered.
It was found that these deliveries contribute to approximately 4000 tonnes of carbon emissions.
“In order to reduce these carbon emissions, businesses must accept that purchasing products online is part of a new normal,” said Rob Hango-Zada, CEO of Shippit.
“We believe that sustainability in retail starts with the delivery experience. We allow parcels to flow through networks more efficiently, by removing waste and inefficiencies across the supply chain.”
Demonstrating the efforts Australian consumers are already making to be more environmentally conscious, research also showed that over 45 per cent of consumers said that after placing an order online, they would usually check to see if the retailer offered a sustainable delivery option, such as carbon offset or order consolidation services.
“As online shopping delivery rates and the corresponding impact on the environment continue to rise, while at the same time the issue of sustainability continues to move to the forefront of consumer’s minds, retailers will need to make sustainability a bigger priority,” said Tom Ferrier, founder of Greener.
“The next few years presents an unprecedented opportunity for brands that are taking genuine action to reduce their emissions.
“For those helping their customers do the same, it’s a competitive advantage. For those who aren’t, it’s a strategic risk.”
