What is the Environmental Impact of Cyber Monday?

Cyber Monday has morphed from a one-day spree of online discounts into a sprawling digital shopping phenomenon spanning several weeks.

The online sales day takes place the Monday after Black Friday, the day after Thanksgiving that kicks off Christmas shopping for many.

Retailers are kicking off their promotions earlier and shoppers are scouring for deals right into December, blurring the traditional boundaries of this once concise event.

Though this expanded shopping season provides more convenience and choices, it also raises significant environmental concerns, encouraging both brands and consumers to reassess their impact on the growing e-commerce landscape.

Cyber Monday may be a digital, but its environmental toll is very real.

Online order volumes soar during this period which results in a substantial rise in packaging waste and emissions from deliveries.

On the Cyber Monday weekend alone, delivery vehicles emit 94% more CO₂ compared to a normal week.

Additionally, a staggering 98% of a retailer's emissions are produced not directly by themselves, but through their whole value chains, including energy utilisation, shipment and waste management processes.

Another troubling issue is the amount of packaging waste generated.

Globally, packaging constitutes 40% of all plastic waste and a major portion of it isn't recycled.

When the peak of online shopping hits during events like Cyber Monday, the accumulation of discarded boxes, bubble wraps and single-use plastics becomes a grave environmentally detrimental force.

Return rates also skyrocket immediately following Cyber Monday as consumers, making use of lenient return policies, often order several variants to compare at home, which has earned the following Tuesday the nickname "Return Tuesday."

This results in an influx of products being returned, heightening emissions and posing logistical challenges for retailers.

Sustainable e-commerce on the rise

The advent of environmentally-conscious shopping is pushing brands to alter their Cyber Monday strategies fundamentally.

According to data from IBM, 62% of consumers are ready to change their purchase behaviours to reduce environmental damage.

An increasing number of companies are adopting strategies to diminish their carbon footprints.

Options such as carbon-neutral shipping are gaining popularity, supporting customers to neutralise the carbon emissions associated with their orders.

Eco-conscious packaging choices, involving biodegradable or recyclable materials, are taking strides towards waste reduction.

Forward-thinking brands like Patagonia are pioneering circular shopping models that emphasise repair, reuse and resale.

Companies like Caudalie are contributing to environmental projects including reforestation, while others such as Paynter Jackets are minimising overproduction by adhering to made-to-order business models.

These strategies illustrate how businesses are blending innovation with responsibility to cater to the eco-aware consumer.

Technology in sustainable supply chains

The booming e-commerce activity throughout Cyber Monday underscores the critical need for efficient supply chains.

Retailers are navigating through fluctuating demands and significant return volumes, under the constant pressure to reduce their environmental impacts.

Matt Gregory, Managing Director for Northern Europe at Körber Supply Chain Software, highlights the shift in consumer expectations: “Rather than one or two key shopping moments, like Black Friday or Cyber Monday, retailers are now in an era of ‘always peak.’

“Many of the UK’s largest retailers have been telling us the concept of Black Friday as a pivotal shopping moment is dying.

"Today’s consumers are far more conscious of the value that they’re getting during Black Friday deals and whether the prices are at their lowest. This, coupled with greater awareness around sustainability and the impact of the rising cost of living, means we expect to see consumers approach this year’s Black Friday with much less enthusiasm."

Technological advancements play a pivotal role in this scenario.

With AI tools and connected supply chain platforms, businesses are able to utilise real-time data to forecast demand more accurately, streamline inventory levels and optimise delivery routes to diminish emissions.

These technological solutions also aid in managing and tracking returns in a sustainable fashion.

Warehouse efficiency is another area for improvement, as online retail space has expanded by 813% in the UK over the past decade, operational inefficiencies have a significant environmental cost.

Ben Whitby of Staci UK suggests: "The growth of warehouses and distribution centres comes as no surprise given their importance in today’s retail landscape.

"However, the rapid expansion of online shopping has significantly impacted the size and operational demands of these facilities, resulting in higher energy consumption and environmental impacts.

"From inefficient lighting, heating and cooling to suboptimal fulfilment processes, these warehouses can be a major source of Scope 2 emissions."

Rethinking the Cyber Monday model

This year, Cyber Monday broke all previous records in the UK, with sales surpassing predictions and online engagement reaching unprecedented levels.

However, these record-breaking sales figures bring with them record-breaking environmental consequences.

The challenge for retailers is now to find a balance between satisfying consumer demands and upholding sustainable practices.

"Consumers are increasingly questioning the value and impact of their purchases," Ben observes.

There is a growing inclination towards mindful shopping, where consumers consider the long-term environmental repercussions of their buying choices.

To remain competitive, brands need to weave sustainability into every aspect of their Cyber Monday operations. This includes providing environmentally friendly alternatives, educating customers on responsible consumption and adhering to concrete ESG standards.

As Cyber Monday transforms, the parameters of its success are also changing, shifting focus from sheer sales volumes to efficiency, sustainability and the capability to meet consumer demands while safeguarding environmental standards.

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