This peak season, sustainable logistics is in the spotlight, with consumers watching the actions of brands closely. But can your business really act sustainably whilst meeting increased demand and tighter turnaround times? We think so! Our 8 sustainable logistics tips will help your business reduce waste for a more ecology-friendly sales period.
8 sustainable logistics practices to implement this peak season
4 out of 5 people describe themselves as likely to choose a brand with a positive approach to environmental sustainability1. Add an “eco-friendly gifts” tab to your website to direct these shoppers to your selection quickly.
Take inspiration from cosmetics brand The Body Shop2, which produces an eco-conscious holiday gift guide for its customers, featuring its vegan and nature-inspired products. Meanwhile, in 2021, ethical retailer Buy Me Once3 ran a Christmas campaign that discounted the ten most voted for products by its customers to emphasise its ethos of “buying with intent” and reducing waste.
2. Switch to eco-friendly packaging
Did you know that 82% of consumers would be willing to pay more for sustainable packaging?2 Fortunately there are plenty of planet-friendly options to help your business meet this demand. Prioritize reusable, recyclable and bio-degradable packaging. You can even explore some of the more unusual packaging innovations out there – like bamboo, mushrooms and even seaweed!
Eco-friendly packaging isn’t just about the materials though – space is just as important. Using too-large boxes for your products means they can’t be packed as efficiently during transit – leading to extra and unnecessary transport emissions.
Managing a surge in demand can be particularly stressful for small businesses, where owners are often already juggling multiple roles. By hiring seasonal staff, you can ease the burden. Now is the time to look at where in your logistics you may need extra support and start the recruitment process. Be aware that the demand won’t stop after the holidays; you may need help managing product returns throughout January. In 2022, 44% of business owners surveyed by the National Retail Federation said they planned to hire extra staff to help them handle returns during the holidays5. With the returns experience so integral to customers’ loyalty to a brand, can you afford not to invest?
Forecasting demand can be a big challenge for any retailer during the peak season. Understock and you’ll have some disappointed customers on your hands; overstock and you’ll have lots of waste. Fortunately, Artificial Intelligence can help. Smart inventory management software can monitor your stock levels, in real time, and adjust your website’s prices to stay competitive and shift slower-moving products. As for any stock that is left over, a Boxing Day flash sale will help sell it and divert it from ending up in landfill.
In a consumer survey by McKinsey6, more than 60% of respondents said they’d pay more for a product with sustainable packaging. Customers buying Christmas gifts from your webstore may want them wrapped, but this doesn’t have to be wasteful. Source eco-friendly packaging suppliers; The Tiny Box Company7, for example, offers recycled tissue paper and bio-degradable ribbon sourced from wood pulp. Just make sure to pack orders in the right-sized boxes so they can be shipped in the most space optimal way – which means less transport emissions and cheaper shipping for your business.
Between Thanksgiving and New Year's Day, Americans increase their solid waste by an estimated 25%8, whilst in the UK, an extra 30% of rubbish is produced and discarded over the Christmas period9. In short, a wasteful time, but your business can play its part by encouraging recycling throughout its logistics. Prioritise recyclable materials for your packaging, and invite customers to send their empty packaging back to you in return for a discount code for their next order – a strategy that will reflect well on your brand and earn you some extra sales.
6. Introduce a reverse logistics strategy
Unfortunately, product returns are a big part of e-commerce. For more sustainable returns, you could consider a reverse logistics strategy, which promotes the recycling, reusing and repairing of returned products. This circular economy system will reduce excess inventory and storage space – both of which will save your business money – and, of course, lessen the amount of waste that ends up in landfill.
Last-mile deliveries makes up a significant proportion of e-commerce businesses logistics emissions. Over the busy holiday season, with delivery volumes increasing sharply, your business should look into green transport solutions.
DHL’s GoGreen Plus solution enables businesses to reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel – a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. It can reduce greenhouse gas emissions by up to 80% compared to fossil fuels. The service can be selected for individual shipments, making it a flexible option for SMEs and e-commerce businesses with smaller cargo loads.
According to the National Retail Federation, the holiday returns rate sits around 17% each year11. Not only are returns expensive to your business, but they result in extra transport emissions, increasing its carbon footprint. However, there are some steps your business can take to make your product returns more sustainable:
Encourage your customers to return the item to you in the packaging it arrived in to reduce waste.
Partner with DHL. Your customers can drop off their returns to a convenient DHL Service Point. A courier will then pick up the packages and deliver them to you all at once, reducing the number of transport trips.
Let your online customers return their items in store. It may even encourage some extra impulse sales, too!
With peak season underway, we know you probably have a million things on your to-do list. But with a DHL Express Business Account, you can leave the logistics to the experts. Fast, reliable, international shipping for your SME is one click away.
Attention SME Superheroes! With Peak Season nearly here, we know there are a million things for small businesses to consider. But don’t fret! Use our dedicated Peak Season Sales & Logistics Checklist to ensure your business is fully prepared to cash in on every opportunity. Happy selling!
Download your free checklist here
