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The whole world has been suffering from the consequences of climate change and its devastating events. Accordingly, consumers started to be more environmentally conscious and more aware of their purchase decisions.
Nowadays, customers are aware of the strong connection between their purchasing habits and environmental changes. To keep up with such a shift in consumer preferences, businesses are adapting to these changes by producing eco-friendly products.
Businesses aim to mitigate their implications on the environment and reduce carbon emissions and environmental footprint. As a result, green commerce became a pressing topic that gained widespread attention.
Thus, in this article, we will delve into the realm of green commerce, understand what it is, its advantages, key strategies to follow, and examples for inspiration.
Seriously, you don’t want to miss out on what’s coming next.
What Is Green Commerce?
Green commerce is a type of business that considers sustainability and environmental dimensions while conducting business activities. Hence, it follows more eco-friendly options in its shipping, packaging, and sales methods.
It’s becoming evident that there is an overall market trend of environmentally friendly products. Thus, businesses started switching to green commerce to appeal to many environmentally conscious customers.
Advantages Of Green Commerce
Green Commerce is more than merely a trend that will take its time and diminish. It’s a reaction to a critical issue that people have started to pay attention to, which is climate change. Consequently, there are plenty of advantages of green commerce that we will shed light on throughout the upcoming paragraphs.
1- Acquiring More Customers
In the past couple of years, it became noticeable that customers buy from brands that align with their values and stand for a common cause. This can be strongly linked with Generation Z and their impact on businesses. They are constantly looking for sustainable alternatives as part of their environmental responsibility.
Accordingly, highlighting your business's focus on sustainability and its role in the environment will enable your e-commerce business to acquire more customers. Most importantly, these customers are eventually going to be loyal ones.
2- Good Marketing Tool
Your sustainable practices through green commerce can be an optimal marketing tool to promote your business. All you have to do is to showcase your eco-friendly practices to customers.
This will resonate with environmentally conscious consumers and will enable your e-commerce to stand out among the competitors. Hence, you will gain a competitive edge and will place your online store as one of the industry leaders.
In addition, this will open more opportunities, collaborations, and markets to your e-commerce. So, it’s a win-win situation. You have a positive impact on the environment and grow your business as well.
3- Reduce Costs
By following more efficient and sustainable practices, you are addressing a crucial aspect which is cost reduction. Reducing energy consumption, recycling products, and sustainable packaging leads to higher productivity, more efficiency, and lower costs.
But it’s worth mentioning that initiating eco-friendly practices for your e-commerce can cost you a little. However, in the long term, it will save you money and reduce costs.
To convince you even more, it has been shown that 33% of businesses use sustainability strategies as a way to increase efficiency by cutting costs (BusinessDIT, 2023).
4- Generates More Sales
To start with, Forbes stipulated that 87% of customers would buy a product if it had a positive social or environmental impact.
Likewise, a study by Accenture (2019) mentioned that 81% of survey respondents are expected to buy more environmentally friendly products in the upcoming five years.
So, these studies indicate that going for green commerce will contribute to higher sales and definitely more profit.
Customers are already on the lookout for environmentally friendly alternatives. Hence, embarking on such a global demand will be beneficial for your e-commerce by driving more sales.
5- Better Brand Image
Trust us when we tell you that there is no better way to build a better brand image than standing for a cause, and in our case, it’s sustainability.
Generally, businesses that adopt eco-friendly practices are perceived by customers as ethical and responsible. Hence, having green e-commerce in which you utilize consistent, sustainable practices builds an enhanced brand identity and image.
Consequently, you become customers’ top choice in the industry. In addition, you will be able to acquire more customers and strengthen the loyalty of your existing ones.
A study by Forbes showed that 88% of customers are loyal to businesses that support environmental issues.
Such a strong customer base can then work as brand advocates to promote your brand and its practices. Thus generating positive word of mouth and building a better brand image.
Examples Of Green Commerce
1- Nike
Nike is leading green commerce with its different eco-friendly practices. In addition, it highlights its efforts in its marketing campaigns to deliver its vision to customers.
As we speak about Nike’s focus on sustainability, we have to tackle its “Move To Zero” initiative. It’s considered a reaction to climate change and a way for Nike to reach zero carbon and zero waste to protect the sports industry.
Accordingly, it removed all single-use plastics in all of its premises. In addition, it collaborated in various efforts to reduce its environmental footprint and to motivate industry change.
Nike has switched to using 100% renewable energy in production. Also, it sells clothes that are 50% recycled, and one of its lines relies on sustainable materials like recycled polyester.
2- Ikea
Ikea never fails to amaze us with its products and even its green commerce practices. It relies completely on renewable energy while reducing its gas emissions.
All of its raw materials are from sustainably managed forests. In addition, its cotton is compatible with strict standards, which leads to less water and energy consumption. 60% of Ikea’s products are made of renewable materials (Boldist,2023).
Its green commerce practices don’t stop at this point. Ikea supports recycling programs and motivates customers to follow its path of sustainability by adopting energy-efficient products.
3- TOMS
We are all aware of TOMS corporate responsibility practices. For each pair of shoes sold, it donates a similar one in return.
TOMS also has a strong role in green commerce practices. It includes environmentally friendly materials in its products like sustainable cotton. In addition, it follows the path of reducing waste and energy use.
Most importantly, its product packaging is all made of recycled material to reduce its environmental footprint.
4- The Body Shop
Consumers' eyes are always directed toward beauty brands and their manufacturing practices, especially those related to animal experimentation.
Accordingly, the Body Shop made sure to address such a crucial dimension and to follow green commerce acts. It constantly highlights developing cruelty-free products that do not include animal testing.
Not to mention the brand’s tendency towards using renewable energy. Also, it relies on vegan ingredients in the majority of its products, which accounts for 60% of its items (Givz,2022).
5- Native Shoes
Native Shoes is specialized in leather shoes. It’s widely known that this industry is highly harmful to the environment and is made of non-recyclable materials.
Yet, Native Shoes decided to abandon industry norms by manufacturing leather products from vegan materials and following unique procedures in production. Also, its products can be easily recycled.
It positions itself as a 100% animal-free footwear. Hence, customers understand that purchasing its products is completely guilt-free as no animals were harmed.
6- Lego
We are all Lego fans here. We enjoy creating buildings with its products and collecting limited edition sets. However, we understand that Lego is made out of plastic, which contradicts environmentally conscious consumers.
As a result, Lego is working on renovating its products to create ones with more sustainable materials. It’s committed to sourcing 100% renewable energy and creating completely recyclable products.
In addition, it aims to remove single-use plastic from all its shipments and packaging. Also, reducing its carbon emissions is regarded as a vital aspect.
Best Strategies For Green Commerce
Now you are aware of the advantages and examples, it’s time for implementation. Hence, we will go through the top strategies to start working on for your green commerce.
1- Switch To Renewable Energy
First things first, switching to renewable energy is the primary strategy for green commerce. This can be done by switching to more environmentally friendly energy sources like solar or wind power. Accordingly, this will contribute to reducing your carbon footprint.
2- Adopt Sustainable Supply Chains
In any business, its supply chain is crucial not only for its success but also for its path toward sustainability.
Therefore, a key practice is to adopt sustainable supply chains. This means collaborating with suppliers that share the same eco-friendly vision as yours. Your supply chain doesn't stop at this point; it continues to inventory management and shipment.
As a result, you have to ensure sustainable practices across all steps within your supply chain to reduce carbon emissions as much as possible.
3- Produce Sustainable Products
It goes without saying that a key practice for green commerce is producing sustainable products. For example, products that include less harmful ingredients and more sustainable materials.
This ensures reducing your negative impact on the environment. In addition, it resonates with customers by positioning your brand as a sustainable one. Also, it offers them with more sustainable alternatives.
4- Consider Less Emission Shipping Options
Your shipping methods can massively contribute to higher carbon emissions, especially with long shipping routes. Accordingly, businesses have to embark on such an issue by considering less-emission shipping options.
For instance, they can ship in bulk rather than individually, or they can provide customers with green shipping options. This means longer shipping times but with a less negative impact on the environment.
Also, it’s vital to deal with a logistics company that has the same core values as yours to be on the same page and to follow similar procedures.
5- Use Eco-Friendly Packaging
Here comes one of the most important strategies which is using eco-friendly packaging which can be easily recycled or are biodegradable.
Your packaging is the first thing consumers see from your brand, sometimes even before the product. Not to mention that consumers are becoming more aware of the importance of sustainable packaging than ever.
Hence, using eco-friendly packaging delivers a positive image for your brand and indicates being an environmentally focused business. Also, it positively affects the environment by reducing waste and carbon footprint.
6- Encourage Recycling And Waste Management
Recycling can be a true gem and a vital strategy for green commerce. Accordingly, it’s necessary to encourage recycling and ethical waste management procedures. This will ensure businesses lessen their environmental impact. In addition, it shows businesses' environmental responsibility towards the environment.
You can create a program that encourages customers to recycle your product packaging in return for redeemable points, for example. Also, you can incentivize customers to return their unused products to be recycled by your side.
Final Thoughts
All signs are indicating the global consumer shift towards green commerce. Accordingly, incorporating green practices is no longer an option.
If you are seeking to outstand competition by gaining a competitive edge, then green commerce can be a place to start from.
However, following green commerce practices doesn’t mean neglecting your core e-commerce practices. You still have to auto-segment your audience, work on automated ads, offer relevant product recommendations, and incorporate a strong email marketing tool.
