Same-day, next-day, and even two-day shipping is the new standard for delivery. But it causes a huge strain on the e-commerce brands, especially brands wanting to be environmentally conscious. Another indirect result of fast delivery is the surge in delivery vehicles on the road, which causes traffic congestion, higher emissions, and infrastructure challenges. Here is the paradox of modern-day e-commerce: “How to balance seemingly contradictory goals while maintaining customer satisfaction?”. This blog explores sustainable delivery solutions and consumer adoption trends.
Quick Guide
- Why Last-Mile Sustainability Matters
- Consumer Willingness to Wait for Green Delivery
- Key Sustainable Delivery Solutions
- EV Adoption & Economic Feasibility
- Conclusion
Why Last-Mile Sustainability Matters
The expansion of e-commerce is intensifying urban congestion and increasing emissions. The rise in online shopping has led to more delivery vehicles on the road. Here is a worrying statistic: If current trends continue, there could be a 60% increase in delivery vehicles by 2030. Ironically, this increase will only lead to more traffic congestion than faster delivery. More specifically, it will result in a 32% increase in delivery traffic and a 21% increase in road congestion This is why last-mile delivery becomes important, because it can reduce environmental impact, save costs, increase customer loyalty, ensure regulatory compliance, and stimulate innovation. Thus, Conscious brands must adopt greener logistics to stay competitive.
Consumer Willingness to Wait for Green Delivery
An aspect to rejoice for e-commerce sellers is that buyers are willing to wait is delivery is sustainable. Many shoppers are even ready to switch retailers if green delivery options aren’t available.
- 41% of consumers are happy to wait longer for sustainable delivery options
- Over a quarter (27%) of consumers say they would pay extra.
- 67% of consumers are interested in carbon offsetting
Now all is not rosy when it comes to sustainability, as 70% of respondents are skeptical of sustainability pledges and promises from brands and retailers.
Another factor to consider is younger generations, like millennials, are more likely to be willing to wait than older generations, while urban populations may be less willing to wait compared to others.
For sustainable DTC delivery, partnering with green delivery companies is essential. Check out the top 10 delivery companies in Canada offering eco-friendly solutions.
Key Sustainable Delivery Solutions
1. Electric Vehicles (EVs)
- EVs significantly reduce CO2 emissions in last-mile logistics, especially in low CO2 intensity regions.
- IKEA Retail aims for 100% electric home deliveries by 2025, already achieving this in Shanghai.
- Medium-duty urban delivery vans (50-100 miles per day) are prime candidates for electrification, benefiting from predictable charging and regenerative braking.
- Challenges include limited driving range and charging time, but Sweden’s electrified roads offer a solution by recharging batteries while vehicles drive.
- Graphene supercapacitors present an alternative to lithium-ion batteries, enabling fast charging and up to 310 miles per charge.
2. Cargo Bikes & Cubicycles
- Ideal for small parcel deliveries in urban areas, reducing congestion and emissions.
- DHL Express has introduced Cubicycles, electric four-wheeled cargo bikes, in the Netherlands, Belgium, and Germany, carrying up to 125 kg of goods.
- These bikes align with CO2 reduction goals while having lower operational costs than traditional vehicles.
3. Parcel Lockers
- Improve last-mile efficiency by reducing delivery stops and travel distance.
- Centralized pickup points decrease emissions by minimizing door-to-door trips.
4. Autonomous Delivery Robots (SADRs)
- Small, pedestrian-sized robots deliver goods without human intervention.
- Amazon’s Scout, launched in 2019, autonomously navigates sidewalks to make deliveries.
5. Underground Delivery Systems
- Uses underground pipes to transport goods, reducing traffic congestion and pollution.
- Germany’s CargoCap system moves cargo through pipelines, carrying two euro-pallets per vehicle.
6. Telemetry & Smart Tracking
- Real-time tracking via sensors and AI improves delivery efficiency and reduces emissions.
- Data-driven logistics optimize routes and minimize unnecessary trips.
7. Urban Consolidation Centers (UCCs)
- Strategically located hubs near cities consolidate deliveries, reducing the number of vehicles entering urban areas.
- Improves supply chain performance while lowering environmental and social impacts.
8. Alternative Fuels
- Biofuels, including algae-based options, offer renewable energy alternatives for fleets.
- Helps decrease reliance on fossil fuels and reduce carbon emissions.
9. Fleet Optimization
- Backhauling: Utilizing return trips for deliveries to reduce empty runs.
- AI-driven route planning: Maximizes efficiency and minimizes fuel use.
10. Reducing Failed Deliveries
- Solutions include reception boxes, delivery lockers, and collection points to prevent unnecessary trips.
- Centralized pickup locations cut emissions by reducing repeat delivery attempts.
Amazon catalog management can help streamline sustainable delivery options, ensuring efficiency while maintaining eco-friendly practices.
EV Adoption & Economic Feasibility
Total Cost of Ownership (TCO) Considerations
- Includes purchase price, residual value, energy/fuel costs, insurance, maintenance, and battery costs.
- High battery costs remain a major barrier, often accounting for a large portion of TCO.
Battery Costs & Performance
- Improvements in battery lifecycle and cost reductions are critical for EVs to compete with diesel.
- Sensitivity analysis shows EVs can reach cost parity if:
- Battery prices decrease by 27%.
- Battery lifespan increases by 27%.
Government Incentives & Policy Support
- Subsidies, tax deductions, and infrastructure investments drive EV adoption.
- Without government support, battery electric vehicles (BEVs) may struggle to compete.
- Diesel price fluctuations impact EV competitiveness—higher diesel costs make EVs more viable.
Operational Considerations
- Offering both one-day and four-day delivery options adds complexity to fleet planning.
- Vehicle lifespan and rising maintenance costs at end-of-life impact cost-effectiveness.
- Battery performance issues (low cycle life and energy density) can slow adoption.
Conclusion
The future of DTC delivery is green—brands must act now. Slowly but surely, a large contingent of customers are preferring eco-friendly deliveries to speed and convenience. It should also be noted that younger generations overwhelmingly choose environmentally responsible practices. Thus, Investing in sustainable logistics builds loyalty and long-term success.