A new research report has revealed 63 per cent of consumers would pay extra for a delivery service that was more environmentally friendly.
The report, commissioned by Manhattan Associates, Shippit and Greener – in partnership with the National Retail Association (NRA) and NORA, also revealed 60 per cent of Australian consumers are open to receiving a delivery at a later date if it meant that it was delivered more sustainably.
Raghav Sibal, Managing Director, ANZ, Manhattan Associates says 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.
“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,” he says.
Over half of Australian consumers indicated they often receive 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.
The same number also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery.
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. 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,” he says.
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 four thousand tonnes of carbon emissions.
Rob Hango-Zada, CEO of Shippit says to reduce carbon emissions, businesses must accept that purchasing products online is part of a new normal.
“The core infrastructure of shipping and logistics must innovate to keep up with the increase in demand without increasing waste,” he says. “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.”
The report shows that after placing an order online, over 45 per cent of consumers would usually check to see if the retailer offered a sustainable delivery option, such as carbon offset or order consolidation services.
Tom Ferrier, Founder of Greener says 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.
“The next few years presents an unprecedented opportunity for brands that are taking genuine action to reduce their emissions,” he says. “For those helping their customers do the same, it’s a competitive advantage. For those who aren’t, it’s a strategic risk.”
To download the full ‘Sustainability in the Australian Retail Supply Chain’ report, please click here