Since the emergence of the Internet we have seen a significant shift from traditional store-front shopping into the online market. This trend has gained favor due to convenience, no restrictions on hours and ease of deliveries.
Considering the energy footprint of the different shopping methods we can estimate both models have roughly the same usage along the energy chain until they diverge at the end of the wholesale distribution network. After this online sales will have a much smaller footprint when considering just the retail and delivery energy consumption.
The average size retail store uses 95.1kWh per square foot annually, breaking down the individual product item energy footprint dependent on the volume of stock kept and shelf life. This is an energy cost that is not experienced by the online retailer who can ship directly from the manufacturer or a receiving / distribution center.
Many online retailers have also set up collection points or in store pick up for customers to use. While this has marginal energy savings, the overall footprint does not reduce at a significant level. It can be assumed the convenience and time savings for the customer drives this market.
There are drawbacks to online shopping. Depending on the type of product being purchased there is a much higher risk of returning items. While the average return for all retailers is under 10 percent, the return for online sales is 30 percent, and up to 40 percent for clothing. This adds around half the energy cost to the transport footprint and a smaller percentage to the packaging.
Online sales have a larger increase in packaging required that adds to their energy footprint. This however is currently being reduced through online retailers differentiating between the two shopping methods. Since 2008, Amazon has been offering “Frustration-Free Packaging” which provides the purchased item in a box that is easily opened and recycled without the need for secondary packaging.
For store-front retailers, the packaging energy can also be discarded when looking at clothing or some types of perishables. Shoppers are now encouraged to bring their own reusable bags to transport purchased items. While recycling of packaging is recommended, it uses energy, so no packaging is always preferred.
As technology advances, retailers are looking to continually make the shopping experience easier for consumers. With the creation of smart fridges that can track and order groceries for you, the online market is expanding its attractiveness.
On average, products purchased online will have anywhere from a 10-50 percent reduction in their energy footprint. This figure will vary according to country of manufacture, type / size of product, retailer purchased from and the location of the purchaser but demonstrates a consistent trend for online shopping.
Online shopping is expanding, and will continue to do while customers become more comfortable with the process. Understanding the energy savings associated with online shopping will help push this more into the mainstream.
