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E-Commerce platform Gambio publishes study “Climate Impacts Under Scrutiny: How Environmentally (Un)Friendly is E-Commerce Really?” in collaboration with Logistics Advisory Experts GmbH. The focus of the scientific investigation was on the amount of CO2 emissions from traffic-related, energy-related, and packaging-related factors of trade. A summary by Ludwig Häberle.
Von Ludwig Häberle
(Bremen/Arbon) The e-commerce company Gambio, provider of a complete solution for professional online retail, has published the results of its commissioned study on “E-Commerce and Climate Impacts.” The meta-study “Climate Impacts Under Scrutiny: How Environmentally (Un)Friendly is E-Commerce Really?” explores five common myths surrounding the supposedly climate-damaging online trade.
The focus of the scientific investigation was on the amount of CO2 emissions from traffic-related, energy-related, and packaging-related factors of trade. It compared the CO2 burdens of purchases in physical stores with those made online. The result: Consumption in e-commerce releases significantly less CO2 emissions in almost all areas than brick-and-mortar retail. Another finding of the study: The individual shopping behavior of consumers has a significant impact on the climate effects resulting from trade.
E-Commerce More Environmentally Friendly than Expected
The meta-study was scientifically supported by Prof. Dr. Wolfgang Stölzle and Ludwig Häberle, who work for Logistics Advisory Experts. The researchers investigated which myths the public holds about online shopping and then compared the factual situation with these assumptions. According to the expert survey of the study, the most common prejudices about online retail are:
- “Brick-and-mortar retail is more climate-friendly than e-commerce!”
- “Online retail leads to increased traffic!”
- “The high return rate is significantly responsible for the poor climate balance of e-commerce!”
- “Due to the additional packaging waste, e-commerce has a poor climate balance!”
- “The energy demand of e-commerce is higher than that of brick-and-mortar retail!”
The researchers’ conclusion: These five assumptions about the climate impacts of e-commerce are false or could largely be disproven. “Of course, sustainability and the environment are also important to us, and we are pleased to be able to show with this study that the five claims about our industry, e-commerce, could not withstand scientific scrutiny,” said Dr. Felix Hötzinger, Managing Director of Gambio GmbH. “Whether online or offline, people shop. The fact that online retail is more environmentally friendly than many have assumed reinforces us as a solution provider for e-commerce in that we not only help retailers to digitalize but also support them in enabling their customers to shop in a resource-saving manner.”
Traffic-Related Climate Impacts: E-Commerce Purchases Protect the Climate
In the examined traffic volume, the St. Gallen researchers found that brick-and-mortar retail is responsible for 11 percent of urban total traffic volume, while the delivery of online shopping purchases from the retailer to the customer accounts for only a comparatively meager 0.5 percent. The myth that package delivery services clog the streets and lead to generally increased traffic could be disproven.
Shopping in Small Retail Stores is the Most Climate-Damaging
Another important CO2 driver is the energy-related climate impacts of trade. The Gambio meta-study counted all climate impacts arising from energy consumption (heat or electricity) that have a direct influence on the shipment-specific footprint. Energy is primarily consumed directly in warehouses, stores, and for operating IT infrastructure. It can be noted that the energy for buildings is primarily responsible for the largest share of the ecological footprint of brick-and-mortar retail. Although emissions from IT infrastructure are higher in e-commerce than in brick-and-mortar retail, they are negligible compared to building emissions. What also surprised the researchers: When all factors are considered, significantly more CO2 emissions are released when purchasing products in small and medium-sized retail stores than in online shops. Compared to large brick-and-mortar retail, such as department stores or large chain stores, e-commerce also performs significantly better.
Return Rate Not a Substantial Driver of E-Commerce Climate Balance
Those who think that the high return rate significantly affects the overall climate balance of e-commerce are mistaken. This claim could also be corrected. The high return rate actually has only a minor impact on the overall climate balance of e-commerce. The study shows that individual consumption behavior has a significant influence on the climate impacts in both e-commerce and brick-and-mortar retail.
Negative Reporting Influences General Perception
According to the experts surveyed in the study, there are several reasons why the five myths of e-commerce exist at all. One of these reasons is the reporting on online retail in the media. Negative reporting about e-commerce can negatively affect public perception. Additionally, a seemingly strong presence of delivery vans is a reason why these claims are widespread and automatically suggest that the ecological footprint must also be poor.
About Gambio
The Gambio Group, based in Bremen and Zug in Switzerland, has been one of the leading providers of SaaS solutions for online retail in the German-speaking region since 2004. Gambio offers both e-commerce start-ups and established companies individual service offerings as a cloud solution. Over 25,000 shops already use Gambio’s 360° service: an innovative shop system with a wide range of functions that is connected to all major marketplaces, payment systems, shipping service providers, and common merchandise management or ERP systems. Additionally, Gambio automatically considers SEO requirements to achieve the best search engine rankings. The comprehensive offering allows end users to create and design a legally compliant online shop even without programming knowledge.
E-Commerce Climate Balance Study Available for Download
The study “Climate Impacts Under Scrutiny: How Environmentally (Un)Friendly is E-Commerce Really?” was commissioned by Gambio in cooperation with the Energy Forums Leipzig at Logistics Advisory Experts GmbH.
Download here
Ludwig Häberle is a project manager at Logistics Advisory Experts GmbH
and works as a research associate and doctoral candidate at the
Institute for Supply Chain Management at the University of St. Gallen.
