Reducing Carbon Footprint: Sustainable Practices in E-commerce Shipping and Trucking

Reducing Carbon Footprint: Sustainable Practices in E-commerce Shipping and Trucking

Sustainability has recently become a buzzword in the world of business. The idea is to sustain companies long-term without compromising the planet Earth. The call for this initiative is true for the business sector since the advent of industrialization has gradually destroyed the planet.

The e-commerce industry is no exception. Since it's contributing to carbon emissions, the industry must implement sustainable practices to reduce its carbon footprint. But how do you promote sustainability as an online business, especially for your e-commerce shipping and trucking?

Read on to find out the answer to this crucial question.

How To Reduce Carbon Footprint in E-commerce Shipping and Trucking

In recent years, we've witnessed the sudden ballooning of the global population, resulting in the demand for goods and services and a surge in energy consumption. As such, companies have been producing more, and the economy has rapidly grown, all contributing to the collective carbon footprint. 

The statistics don't lie: Statista reported an increase in global greenhouse emissions by over 60% for the last 30 years. These worldwide emissions amounted to 37.12 billion metric tons (GtCO₂) in 2021 and 37.5 GtCO₂ in 2022.

Among industries, e-commerce is one of the biggest contributors to global carbon emissions. The industry has exponentially boomed, further triggered by the pandemic:

According to Precedence Research, the worldwide e-commerce market could grow from $14.14 trillion in 2022 to $57.22 trillion by 2023. It's forecasted to expand at a compound annual growth rate (CAGR) of 15%. 

Given such market growth, online businesses have been offering products and services, leaving massive carbon footprints on the planet. And we can attribute the carbon emission contributions to their modes of transportation, whether shipping or trucking.

This begs the question: How can you help reduce your carbon footprint, especially in e-commerce shipping and trucking? Follow and implement the best practices below. 

1. Invest in Eco-friendly Vehicles

E-commerce transportation significantly contributes to carbon emissions. Delivery vehicles, trucks, and cargo ships heavily rely on fossil fuels for transportation, releasing large amounts of carbon dioxide into the air. It’s time to look for alternative modes of transportation.

Forrester cites that Five Fortune Global 200 firms will declare travel policies for sustainability. But what better way to proceed than to invest in eco-friendly vehicles? Ward recommends investing in the following.

• Electric Vehicles: These vehicles use electricity stored in rechargeable batteries. They are better alternatives to gasoline and diesel-powered automobiles.

• Cargo Bikes: These human-run or electric-assisted bicycles can transport goods or items for short distances. Think of freight bikes and cargo trikes used in your locality.

• Hybrid trucks combine internal combustion energy with electric propulsion systems. They are best for fuel efficiency and carbon emission reduction.

• Battery-powered Ferries: These ferries use electric propulsion systems with battery banks. You can use these as cargo boats to ship goods or items.

• Hydro-powered Ships: These ships use hydrodynamic lift to speed up and minimize water resistance. They can be used for transporting products by sea.

2. Use Renewable Energy Sources

For the uninitiated, renewable energy sources come from natural resources, better alternatives to fossil fuels. They are usually replenished more than they are consumed, and they produce fewer carbon emissions than traditional energy sources.

It's best to use alternative energy sources for e-commerce operations, whether for material procurement, actual production, or product delivery. Consider the following:

• Solar: The sun is the most abundant energy source. Consider investing in solar technologies for various e-commerce operations for electricity, heating, or natural lighting.

• Wind: This source harnesses the kinetic energy of the moving air through massive wind turbines. If you run an e-commerce factory or industrial facility, consider utilizing wind as an energy source.

• Hydropower: As the name suggests, the energy comes from water moving from higher to lower elevations. You can install hydropower reservoirs for your e-commerce operations, whether for drinking, irrigation, or energy supply.

• Geothermal: This type uses the thermal energy from the Earth's ground. Your industrial facility or e-commerce technology can extract heat from geothermal reservoirs to power your operations.

3. Streamline Delivery Routes

Regular e-commerce trucking and shipping can leave a vast carbon footprint. You must streamline your delivery routes as part of your sustainable practices. They will improve your overall efficiency and profitability, and these practices will help protect the environment.

To optimize your transportation or delivery, Underwood recommends the following:

• Look for shorter routes. 

• Combine deliveries in a single route.

• Use real-time traffic updates.

• Update customer location details.

• Maximize vehicle capacities.

• Employ digital mapping.

• Establish local warehouses.

• Have alternative routes.
  

Also, you need to consider shipping methods since fast shipping is one of the key factors in online businesses’ success. Here, you can consider premium shipping. With this method, you can conveniently monitor your item's progress and receive it within 7 to 15 days. It is ideal for customers who prefer not to endure extended waiting periods or those in urgent need of their products.

4. Optimize E-commerce Packaging 

Proper packaging is a crucial part of the overall e-commerce equation. Effective and efficient practices can positively impact your product shipping and trucking. On the other hand, poor packaging can translate to delivery inefficiency, product waste, and a large carbon footprint.

As such, you can optimize your e-commerce packaging by following the steps below.

• Customize packages to reduce waste and space.

• Use eco-friendly and reusable materials for packaging.

• Invest in reusable packaging materials.

• Resort to bulk packaging by putting multiple items in a single package.

• Employ proper labeling and barcoding.

5. Streamline E-commerce Operations

Various parts of e-commerce operations can impact your delivery. To avoid order processing mistakes and incorrect deliveries, it's best to streamline all these processes.

E-commerce fulfillment problems can involve reprocessing, repackaging, and reshipping or trucking. These processes are costly, laborious, and time-consuming and can also contribute to product waste and carbon emissions.

Below are ways in which you can optimize your e-commerce operations:

• Material Procurement: Diversify your supplies and work with reliable local and global suppliers to obtain raw materials. Ensure they offer quality materials and efficient deliveries to regulate your stock levels consistently.

• Order Fulfillment: Establish a reliable team of order fulfillment specialists, whether local or outsourced. Ensure they are fully trained in processing orders and coordinating with other departments to ensure the right products get delivered to customers on time. 

• Warehouse Management: You can use various local warehouses for your e-commerce operations or hire reliable fulfillment centers. You should ensure enough warehouse stock, proper inventory management, and seamless picking and packaging.

• Inventory Management: Manage your inventory and ensure you have enough raw materials, tools, equipment, and finished products. 

Every part of your supply chain can affect your e-commerce production. Ultimately, efficiency and productivity in operations can go as far as minimizing your carbon footprint. 

6. Educate Stakeholders on Sustainability

Proper education plays a vital role in business. This idea applies to sustainability in e-commerce operations. The best approach is to educate all your stakeholders about the importance of sustainable practices. Better yet, hire employees and partner with third-party vendors that promote business sustainability.

Consider taking the following approach for each unit:

• Direct Workers: Orient your employees on sustainable practices, including carbon emission reduction. Let them understand that everyone plays a vital role in fostering sustainability in business.

• Order Fulfillment Teams: Train your specialists on correct processing and departmental coordination to avoid errors or mistakes, which can contribute to increasing carbon footprint.

• Shipping Service Providers: Work with robust shipping providers with optimized routes. They will ensure faster and safer product delivery and help minimize your carbon footprint.

• Truck Delivery Couriers: Partner with reliable couriers for product delivery. They can consider freight factoring for trucking companies to ensure continuous operations and avoid product delays.

7. Partner with Environmental Agencies

Partnering with top agencies promoting environmental protection and business sustainability is best. They can help you develop and implement sustainable practices that will reduce the carbon footprint of your e-commerce operations. Along with this is to earn standard certifications for a positive business reputation, guaranteed customer loyalty, and increased profitability.

Below are government and non-governmental organizations you can work with:

• Environmental Protection Agency (EPA): This U.S. federal agency is responsible for protecting and improving the country's environment. EPA sets standards and enforces air and water quality regulations, hazardous waste management, and other environmental issues.

• International Organization for Standardization (ISO): This independent organization sets international standards for various sectors. ISO standards seek to guarantee product quality, safety, process efficiency, and environmental responsibility.

• Greenpeace: This international organization is notable for its environmental conservation and protection activism. Its campaigns revolve around climate change, carbon emission reduction, and advocacies around protecting the environment.

Final Words

There's no denying how businesses across different industries have been destroying the planet Earth. While e-commerce has been thriving and meeting consumer needs, it has immensely contributed to global carbon emissions. As such, business sustainability is critical to reducing carbon footprint.

That said, follow our sustainable e-commerce shipping and trucking practices recommended above. Invest in eco-friendly vehicles, optimize routes, and partner with environmental agencies. With all these sustainability measures, you can help save the planet and sustain your business long-term!