How e-commerce impacts the environment

E-commerce is now an indispensable part of domestic and international retail, with more people and businesses going online to purchase goods and services. Data from Statista estimates that worldwide retail e-commerce sales exceeded 4.1 trillion U.S. dollars in 2024, and they’re expected to reach new heights in the coming years. 

E-commerce offers numerous benefits, but its environmental footprint is increasingly concerning. A 2024 Digital Economy Report by the United Nations (UN) emphasizes that e-commerce can have positive and negative implications for environmental sustainability. 

Learning more about how e-commerce impacts the environment and its advantages and drawbacks can offer insights into how to reduce your carbon footprint as a business or consumer.

What are the Pros of E-Commerce for the Environment?

1. Reduction in Physical Retail Footprint

Traditional retail stores require substantial resources for construction, energy consumption, and daily operations. Maintaining physical stores involves electricity for lighting, heating, air conditioning, and refrigeration, which contributes significantly to carbon emissions.

Retailers selling online don’t need physical locations, eliminating the need for energy-intensive storefronts and encouraging more efficient warehousing models. Additionally, many retailers now operate dark stores—warehouses dedicated solely to fulfilling online orders. These spaces are optimized for efficiency, requiring less energy than conventional retail outlets.

2. Efficient Inventory Management and Waste Reduction

Many companies rely on advanced data analytics and artificial intelligence to accurately predict demand patterns. This allows businesses to manufacture products based on real-time consumer interest, reducing excess production and unsold inventory waste.

For example, statistics on fast fashion waste show that 92 million tonnes of textile waste is produced yearly, making the fashion industry responsible for around 10% of global carbon emissions. E-commerce platforms using made-to-order or just-in-time inventory systems can help lower this figure by only producing what consumers order.

3. Optimized Logistics and Consolidated Deliveries

Centralized warehousing reduces the inefficiencies of traditional supply chains, where products often move between multiple distribution centers before reaching retail stores. E-commerce companies employ algorithm-driven route planning to consolidate shipments, reducing total miles traveled per package.

The Environmental Protection Agency (EPA) notes that transportation emissions account for around 28% of total U.S. emissions, making it the most significant contributor of greenhouse gases in the U.S. E-commerce with consolidated deliveries can help reduce individual shopping trips and associated transport emissions. Instead of multiple consumers driving to stores, a single delivery vehicle can serve dozens of households in one trip.

What are the Cons of E-Commerce for the Environment?

1. Increased Packaging Waste

E-commerce shipments require packaging materials for protection during transit, leading to massive waste generation. Unlike in-store purchases, where shoppers carry items in minimal packaging, online orders often come in multiple layers of plastic, cardboard, and Styrofoam.

The UN 2024 Digital Economy Report shows that e-commerce generates 4.8 times more packaging waste than goods sold in brick-and-mortar stores, with implications for greenhouse gas emissions. Findings show that e-commerce significantly contributes to carbon pollutants and environmental waste through cardboard boxes. The issue is exacerbated when increased packaging and low-grade, hard-to-recycle materials such as printed return forms and sticky labels are used for online returns. 

Additionally, many packaging materials, such as polyethylene foam and bubble wrap, are not easily recyclable, further aggravating landfill accumulation.

2. Rising Carbon Emissions from Transport and Deliveries

The environmental footprint of e-commerce is significantly influenced by the method used for last-mile delivery and how customers choose to travel to and from physical stores if they are collecting the goods. Last-mile delivery is the final link from the retailer/supplier to the consumer and is considered the most energy- and carbon-intensive segment.

While e-commerce reduces consumer travel, it also increases last-mile delivery emissions. The push for faster deliveries leads to:

• More delivery vehicles on the road, many of which are fossil fuel-powered trucks and vans that generate high carbon emissions.
• Inefficient routing, such as same-day and next-day shipping, reduces package consolidation.
• A higher demand for air freight, which is significantly more carbon-intensive than sea or ground transport.

A study by the World Economic Forum (WEF) projects that last-mile delivery emissions will rise by over 30% by 2030 in major cities worldwide if online shopping continues its current growth trajectory. This is equivalent to adding six million delivery vehicles worldwide, increasing congestion and pollution.

3. Product Returns and Waste Generation

Activities linked to returning items purchased online can impact the environment through the use and choice of return packaging and labeling, reconditioning, storing, order picking, repackaging, and new deliveries. 

Rates of product returns are usually much higher for online shopping than in-store purchases. According to the National Retail Federation (NRF), customers return up to 17.6% of online purchases, compared to 10.02% for in-store purchases. Each return involves additional shipping, repackaging, and restocking logistics, increasing carbon emissions.

E-commerce usually sees higher rates of return because consumers cannot see or try out the product before buying. Even more concerning is that returned products are often not resold. Many are discarded due to:

• Repackaging costs exceeding the product’s value.
• Health and safety concerns, especially for clothing and electronics.
• Retailers’ policies favoring destruction over resale.

4. Encouragement of Overconsumption

E-commerce usually boosts overall consumption due to enhanced accessibility and convenience, lower prices, and greater product variety. E-commerce platforms also use sophisticated personalization algorithms to encourage repeat purchases. Shopping sites will likely bombard you with recommendations, time-sensitive discounts, and marketing strategies that promote impulse buying.

Consumer behavior, which involves more frequent and fragmented purchases across different platforms and retailers, together with impulsive buying, leads to overconsumption, increased transportation emissions, and packaging waste. 

This results in:

• Excessive resource extraction to meet artificial demand.
• Shorter product lifespans, leading to increased waste.
• Higher disposal rates, as fast fashion and disposable consumer electronics gain popularity.

Solutions for Sustainable E-Commerce

Eco-Friendly Packaging Innovations

More companies are moving to biodegradable and recyclable packaging to combat e-commerce waste and join the trend of environmentally friendly business models. Some emerging solutions include:

• Minimal Packaging – Designing the packaging to be minimal eliminates unnecessary layers while maintaining product safety. For example, Marcedo Libre, a company that operates e-commerce marketplaces, got rid of additional packaging to help reduce the use of materials and waste production. Products are shipped in their primary packaging material with a single label stuck directly to the goods. 

• Eliminating Single-Use Plastics – Eliminating single-use plastics is crucial for reducing environmental pollution and protecting ecosystems. Businesses are adopting biodegradable alternatives such as paper-based packaging, compostable bioplastics, and reusable containers. Governments worldwide enforce bans and restrictions on single-use plastic packaging to promote a shift to more reusable, recyclable, or compostable packaging for e-commerce.

Mindful Shopping Habits

Mindful shopping habits can help curb overconsumption, minimize waste, and promote sustainability. You can adopt more responsible purchasing decisions by prioritizing quality over quantity and ensuring you only buy what you need rather than succumbing to discounts or limited-time offers.

Sustainability habits you can implement include:

• Shopping mindfully – Research products thoroughly before purchasing. Checking reviews, product specifications, and sustainability claims can help avoid returns, additional carbon emissions, and landfill waste. 

• Choose Slower Shipping – Slower shipping methods help reduce emissions by allowing for more efficient delivery route planning. Consolidating orders instead of making multiple small purchases can reduce packaging and transportation-related pollution. 

• Support Sustainable Businesses – Additionally, supporting businesses that use sustainable packaging, carbon-neutral shipping, or circular economy models helps drive industry-wide change. Choose durable, ethically sourced, eco-friendly products to support companies committed to reducing their environmental footprint.

You can also make more eco-conscious choices beyond shopping habits. If you’re a frequent traveler, for instance, when traveling to Europe, opting for eSIM Europe instead of physical SIM cards helps reduce plastic waste and unnecessary shipping emissions while ensuring seamless connectivity abroad. Small changes like this contribute to a more sustainable digital lifestyle, complementing mindful e-commerce practices.

Greener Delivery Solutions

As e-commerce expands, companies invest in greener delivery solutions to reduce carbon emissions and environmental impact. Businesses can shift toward more sustainable logistics by implementing innovative, eco-friendly alternatives like:

• Electric Delivery Vehicles – These vehicles produce zero emissions, significantly reducing air pollution and improving urban environments. For example, Amazon has deployed over 20,000 electric delivery vans across the U.S. to decarbonize its delivery fleet and plans to increase the number to 100,000 by 2030. 

• Bike Couriers – In densely populated cities, bike couriers are a practical alternative for last-mile deliveries. Companies like DHL and FedEx are expanding their use of electric cargo bikes, which can navigate traffic more efficiently while emitting no direct pollution. This solution helps alleviate congestion and reduces greenhouse gas emissions associated with short-distance travel.

• Pickup Lockers – Lockers allow customers to retrieve multiple packages from centralized locations rather than receiving individual doorstep deliveries. This method optimizes delivery routes, reduces the number of vehicles on the road, and minimizes last-mile emissions, making e-commerce logistics more environmentally friendly.

Last Word

E-commerce has revolutionized global shopping habits, providing unprecedented convenience, accessibility, and international reach. It offers environmental benefits like reduced retail footprint and optimized logistics, but can also lead to packaging waste, rising emissions, excessive consumption, and product returns. Sustainable practices that balance consumer convenience with environmental responsibility are necessary for a greener e-commerce industry that benefits both people and the planet.

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