Sustainability in home delivery market hampered by current economic environment

Environmental concerns weigh on consumers' minds when purchasing online

While more than half of consumers (57%) are either ‘quite’ or ‘very’ interested in sustainable home delivery services, nine in ten (89%) said that their willingness to pay more for said services was hampered by current economic circumstances, a study by Descartes has found.

The study, 2024 Home Delivery Sustainability Report: The Environmentally Conscious Consumer Under Pressure, found that more than a third (34%) found that economic pressures had either ‘significantly’ or ‘drastically’ impacted their motivation to opt for more sustainable delivery services.

An overwhelming number of respondents (99%) said that they are open to doing more to reduce their environmental footprint, with 38% stating that they either ‘regularly’ or ‘always’ make purchase decisions based on the environmental impact of the product or company they are purchasing from.

Educating the market

‘Offering and educating the market about sustainable last mile practices that save the consumer money represents an opportunity for retailers to stand out and build loyalty as eco-friendly businesses while operating more efficiently,’ Descartes said.

The top delivery options cited by those interested in availing of more sustainable transport methods included combining orders into a single delivery, the use of carbon neutral deliveries, and having the seller recommend the most environmentally friendly supply chain option.

Strong interest in sustainable delivery services

“Despite the financial pressures many consumers are facing today, interest in purchasing goods from companies with sustainable business practices, including eco-friendly home delivery options, remains strong,” commented Ken Wood, EVP Product Management at Descartes.

“By capitalising on this opportunity to educate consumers across all age groups about the cost-efficiency of many environmentally friendly delivery choices, retailers can better differentiate their services and build brand loyalty. Because the majority of environmentally-friendly options also drive delivery density and increase delivery efficiency, they also help to reduce transportation costs for retailers.”

The 2024 Home Delivery Sustainability Report, created by Descartes and SAPIO Research surveyed 8,000 consumers from nine European countries, as well as Canada and the United States, to provide retailers and logistics companies with insights into how sustainability influences purchasing behavior across various age groups and regions.

Key topics include consumer motivation to minimise their carbon footprint through eco-friendly home delivery options, and how inflation and economic factors impact their delivery preferences and habits. You can find the full report here.

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