Sustainability in online stores: Not a top priority for retailers

How high is sustainability on the agenda of Swiss online retailers? For the second time in a row, the Lucerne University of Applied Sciences and Arts has investigated sustainability in Swiss e-commerce with the Online Retailer Survey 2021 on behalf of Swiss Post. 248 companies took part in the quantitative survey.

For 83 percent of the online retailers surveyed, sustainability means assuming their corporate responsibility. Two thirds of all providers are also convinced that a sustainable orientation of their online stores can increase competitiveness, and six out of ten online store operators see sustainability as an important customer need. However, legal requirements and regulations do not appear to be a driver for further efforts in the area of sustainability. Only 23 percent of online retailers feel pressured by regulatory requirements to invest more in the sustainable operation of their stores.

Sustainability: Not top priority despite good reasons - but more important than Corona

Even if the majority of online retailers are convinced of the need to address sustainability: Sustainability in products as well as in packaging and logistics is only just one of the most important corporate issues for three out of ten online store operators. "There are plenty of good reasons for online retailers to become more sustainable. Active action and the implementation of concrete measures naturally take time and resources," says Thomas Wozniak, study director and lecturer at the Lucerne University of Applied Sciences and Arts. Far higher on the agenda for online store operators are their own growth (one of the most important topics for 56 percent of companies), process automation and optimization (47 percent) and marketplace presence (39 percent). "Online retail is growing strongly. Many vendors are primarily concerned with optimizing processes and differentiating themselves from competitors," Wozniak said. Vendors seem to have little concern about the impact of the Corona pandemic. Only 21 percent of all companies surveyed said that the aftermath of the Corona crisis is one of the most important business issues for them this year. "You can clearly see here that unlike other industries, online retail is hardly suffering from the Corona pandemic," Wozniak says.

Online retailers use less plastic

The type of packaging in which the ordered goods are delivered contributes a part to the sustainability balance of an online retailer. Online retailers have taken another step forward compared to the previous year, particularly in their choice of packaging materials. In 2021, 40 percent of online stores will do without plastic for the outer packaging of their products, compared with 30 percent a year earlier. 39 percent of all providers will do completely without plastic when it comes to filling material (2020: 34 percent). Around half of online retailers use recycled materials for packaging (54 percent) and filling (48 percent). Around a quarter of suppliers also use reusable packaging. When it comes to packaging, resources can also be conserved by choosing the right package size. Around three quarters of online retailers say they use size-optimized packaging. "This not only saves resources in the use of materials, but also reduces the necessary transport and intermediate storage capacities," specifies Wozniak. "In addition, fewer customers end up wondering why there is so much air in the carton."

More options for climate-neutral shipping

Even after the product has left the warehouse, it creates an environmental footprint. How large this footprint is depends on the type of delivery. Just under half of the online retailers surveyed offer pickup at their own stores. In four out of ten online stores, customers can have partial deliveries bundled into one consolidated delivery. So if they order something from the same online store several times at short intervals, all the products are delivered in one package. Both options reduce the number of delivery trips. Locally adapted logistics solutions such as bicycle delivery services in combination with the train or transport by e-cargo bike are offered much less frequently. Only 13 percent of all companies surveyed offer such delivery options. "Especially on the so-called last mile, it makes a lot of sense to rely on local lean and environmentally friendly delivery solutions," Wozniak said. "Especially in densely populated areas, this often makes more sensible use of scarce transport space. So this should also be in the interest of cities and towns. It also reduces emissions of noise, climate gases and air pollutants."
Overall, the offer of climate-neutral shipping at no extra charge has grown. Whereas in 2020 around 15 percent of all online retailers offered climate-neutral shipping, by 2021 this figure had risen to 26 percent.

Consumer behavior and Corona

The impact of the Corona pandemic on online retailing is also shown by the E-Commerce Sentiment Barometer 2021, which was compiled by the HWZ Hochschule für Wirtschaft Zürich in collaboration with Swiss Post. The study examined the habits and preferences of over 11,000 Swiss consumers in online retailing. It showed that Mr. and Mrs. Swiss shop online significantly more often than before the pandemic: for example, while 14 percent of respondents over the age of 55 still shopped online weekly in 2019, this figure had already risen to 19 percent by 2021. The most frequently cited reasons for shopping online are independence from opening hours (78 percent) and home delivery of purchases (78 percent). However, the Corona pandemic is also an important reason for around 40 percent of respondents. When it comes to delivery options, the "Click & Collect" option in particular - the collection of goods ordered online from retailers' sales outlets and post office branches - became more important compared to 2020 (+5 percent).
Overall, the changes in consumer behavior already observed last year as a result of the Corona pandemic continued this year. year is making inroads. The trend toward digitization continues - not only in shopping itself, but also in payment options.

Further information on the online retailer survey by the Lucerne University of Applied Sciences and Arts and the e-commerce sentiment barometer by the Zurich University of Applied Sciences and Arts HWZ, as well as the two studies for download, can be found at www.post.ch/digital-commerce-studien.

Press release HSLU

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