GEOG1003
Contemporary Global Environmental Issues
Final Project
Is Online Shopping a Green Retail Option?
Ho Yan Nok (3035108796)
Abstract
With technological advancements in recent decades, online shopping has become a more favorable business option than traditional shopping. Online shopping has successfully won customers over for its convenience as it allows consumers to browse, choose and order products from the comfort of their homes. Yet, environmental impact is seldom a topic of concern to most shoppers. Is online shopping better for the environment, or could it be worse? Considering the likelihood of online shopping to be widely adopted, the environmentally-friendliness of such retail alternative, in
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The e-tail option often requires more packaging. Packaging accounts for 22% of the carbon dioxide emissions of an item purchased online (Carnegie Mellon’s Freen Design Institute, 2011). Conventional shopping has the environmental edge over online shopping in terms of packaging.
Warehousing accouts for more or less the same portion of carbon emission in both retail and e-tail options as suggested by the chart in Figure 2.
All in all, the total energy emission of retailing is larger than that of e-commerce as seen in Figure 2. Carbon footprint in the retail pathway is therefore higher than that in the e-tail pathway.
Discussion
Online shopping is almost always less energy-intensive than going to a store in person. It is a less energy-consumptive option approximately 80% of the time. E-commerce uses about 30% less energy than traditional retail (Carnegie Mellon University, 2011).
Fig. 3 The traditional retail pathway
Fig. 4 The e-tail pathway
The most prominent environmental benefit of online shopping is that it requires less transportation. In traditional shopping, inventory often travels more miles before reaching the final destination. Once a product is manufactured, it is first sent to central warehouse, then to regional warehouse, and finally to the store; whereas in online shopping, the product normally travels directly from distributor storehouse to customers (see Figure 3 and 4). The ‘last mile’ is an especially
Delivery to a customer is a key component to retail business, whether online or in a store. Measuring delivery cost efficiency, the total cost of delivery from the stock(s) to the customers’ homes or to the desired store for pick-up is evaluated. The delivery cost is the key measurement for this metric. The
Consumers must feel that they are making the right decision. Physical stores can not only offer a beautiful place filled with all sorts of aesthetically appealing items, but also they offer a social experience. For many, “going food shopping” has become a ritualistic outing. Thus, online suppliers must counter-act this. In order to do so, not only must they somehow lure the consumer in in the first place, but also they must be mindful that the consumers’ experiences must be perfect. This means that they must first engage the clients without having a location and then be sure that inventory and offerings are totally accurate and that no products are damaged in the process. Online suppliers have tried to differentiate themselves and find a niche in offering something that is more “green” and environmentally friendly. Whilst supermarkets can only tell customers to bring their own bags, online retailers not only can say that they are more ecologically friendly, but also offer even more “green” options at a higher cost. Operationally this translates into a massive online experience that needs qualified programmers, designers, product development experts, able to discern the right online configuration needed to convince
I disagree with Amy Koss’s stance for the reason that as an Amazon customer, I do not concur with the statements that suggests that online shopping makes us more indolent. In fact, I believe that it greatly benefits us and could make us more productive. For instance, if you live in a populated city, you’re more likely to become stuck in traffic
The article Deliver It All, written by Anne Goodchild, Erica Wygonik, & Bill Keough, begins its discussion with how our younger generation today perceives online ordering, shipping, fulfillment, etc. Every year, professionals within supply chain departments are challenged to bring quicker, more efficient methods of inventory planning and logistic strategies, while at the same time being aware of environmental influence. The article goes into further discussion regarding how retail sales have been booming over the past decade, and look to continue to grow. Needing to satisfy this demand, companies such as Amazon and Volvo have implemented delivery systems to satisfy their customers to the highest degree. One staggering statistic that really
The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and
Customers are increasingly seeking to purchase products from companies that are taking care of our environment (Carbonfree). The Federal Trade Commission regulates environmental marketing claims so consumers can be reasonably confident that any promises apply to most of the packaging or contents of the product and not to “minor, incidental components”(Margaret). Excessive paper or wrapping and the harms caused by non-biodegradable materials have become a hot topic and companies have realized the public is equally concerned about the ethics of packaging. Not only having safe and effective packaging equipment qualifies companies as being ethical, but the processes and working conditions of employees are under the microscope as well. As an example, a company that produces sugar can have the claim of being “Carbon Free”. For many consumers, this sounds good and well intentioned, however the claim is not directly for the product but instead meant for how the product was manufactured. Without statements tying the two together the general public will continue to be misled or misinformed. The claim of packaging made out of recycled material when only a small percentage of the container was indeed recycled is a continuation of product misrepresentation and manufacturers point to shoplifting as an explanation for packing items in difficult-to-open containers (Margaret). Margaret points out that even this issue leads to
Buying packaged goods could potentially increase the amount of waste generated by the University. More packaging means more energy and
New government regulations geared towards curbing over-packaging in today’s businesses should be implemented, to prevent and increase the focus on the negative environmental impacts businesses cause as a result of disposable products and packaging. If businesses where to make the change from disposable resources to reusable resources, then businesses would be able to significantly reduce their costs and their environmental footprint. In essence, businesses who are concerned with reducing costs and being environmentally conscious shouldn’t need to worry about the implementation of government regulations. Because, if the government were to implement regulations on the use of disposable materials, then businesses would see a financial benefit from the switch to reusable materials. Furthermore, if these policies had efforts aimed toward curbing over-packaging it would significantly increase the world’s abilities to maintain a substantial living environment in the future. Keeping the future in mind, the need for these kinds of regulations will only continue to grow, because as time passes the amount of packages sent out from companies is exponentially growing.
When comparing two different ways of shopping most people do not even think about the difference, they do both and not even realize it. In today's society people shop while at work, after work and on the weekends, whenever time permits. Stop and think how can I get more time in the day for family or just myself? The best way to figure that out with all the recourses we have is to go into a store and spend time looking through racks and waiting in endless lines to just purchase something. I compared going into a store verses online shopping; to see which one will save you time and money.
For example, forestry projects are one of the important outcomes of joint implementation in agriculture industry. Planting trees in reforestation or afforestation projects enhances the absorptive capacity of the biosphere and leads to carbon dioxide reductions in the atmosphere(Robert and Sally, 1995). Besides, Tesco, a European supermarket chain, is beginning a program to provide a global warming rating for everything it sells (Scot, 2007). The chain is creating an index to measure the “carbon footprint” required to produce, package, and transport each product in its stores. Consumers can then include the carbon footprint along with price and product quality when making purchasing decisions.
The question of how efficiently resources are acquired and used and optimal processes, products and services each retailer could implement in order to control and minimise environmental footprints will also be discussed (Miller, 2008).
The discussion of supply chains going green has become a bone of contention among major stakeholders in the industry. The discussion started after the Carbon disclosure project released a report indicating that supply chains contributed greatly to the emission of carbon in the atmosphere. Due to the report, pressure has been mounting on the administration of supply chains to implement strategies on their carbon management. Analysts have however stated that there are various pros and cons of the supply chains going green, which have to be considered in the implementation of carbon management strategies. This paper analyzes the pros and cons of supply chains going green.
In this paper we will discuss what exactly is green logistics, and why green logistics strategies have gained attention recently. We will then introduce some of these green strategies and their benefits. We will finally discuss some of the challenges facing green logistics
Companies face a multitude of challenges when it comes to Supply Chain management ranging from profitability and cost management to visibility and customer satisfaction. With the increased awareness of environmental practices, there is an expectation that businesses should evolve to be more environmentally conscious. As stated from a 1987 Brundtland Report known as “Our Common Future”, (WCED, 1987) sustainable development is one that “meets the needs of the present without compromising the ability of future generations to meet their own needs.” The influence of environmental performance is a growing decision criteria for customers in the consumption of products/services. This is evident from a survey conducted by the Natural Marketing Institute (Kaiser, 2008) which reveals that 30 percent of American consumers are willing to pay 20 percent more for products made in an environmentally friendly and sustainable way.
Consumers want to shop by their terms and not by a business’. If they happen to spot something while using their phone, they hope to either purchase that item in the physical store or even on its website. Particularly important to consumers, they want product availability with continuously up-to-date inventory levels. The delivery of orders is another trend, affecting the way consumers shop. Many companies offer free delivery or returns, either through the website or at the physical store when the order came from their site (Kahn, 2014). Consumers expect to receive their orders quickly. Whatever product they want, they also expect delivery in the shortest time possible. Another trend retailers consider is consumers search through many retailers when shopping online, helping those on a limited budget easily find the best deal for their money. Those not on a budget choose products based on their quality requirements by configuring a product to their desired specifications. Retailers must focus on the needs of consumers and adjust to those needs. With the continuing high unemployment, consumers are frugal with their spending (Farfan, 2014). Enticing a consumer to spend the money they possess, using sales and promotions draw those consumers into stores if retailers focus on the products desired by the frugal consumer.