The surging popularity of online shopping has created a headache for environmental groups concerned by an increase in packaging waste – and physical retailers could hold the solution.
Consumers spent $791.70 billion online with U.S. merchants in 2020, up an incredible 32.4% year over year, according to U.S. Department of Commerce figures. That’s the highest annual U.S. ecommerce growth in at least two decades. It’s also more than double the 15.1% jump in 2019.
In 2021, online penetration hit 18.7%, up from 18.4% for the same period last year. Offline sales increased 14.1% year over year, up significantly from 1.9% for the first nine months of 2020. Total retail sales reached $3.28 trillion, up 14.5% from $2.87 trillion in the first three quarters last year.
And this change in shopping behavior is not expected to reverse even as lockdown restrictions ease and stores reopen to the public. This means click-and-collect is an important issue to consider.
This increase in online shopping has also brought about an increase in the use of packaging, as goods are shipped from retailers to consumers.
Corrugated-box shipments grew 9% in March 2020 from the previous year, industry data show, despite a brief dip in revenue when the pandemic’s initial shock froze the supply chain. But shipments quickly resumed and climbed through the fall, peaking in October, and box makers were on pace to end the year with record production to meet demand.
Meanwhile ,the market for filled-air packaging products is expected to reach USD 5.95 billion by 2028, according to a new study by Polaris Market Research.
The quick click fix
While there are currently efforts to make packaging sustainable, many of the materials used to manufacture these products remain relatively expensive.
And simply posting without packaging is hardly a solution either – the environmental cost of replacing goods damaged in transit is often worse than the cost of appropriately packaging them ahead of time.
However, that’s not to say it isn’t possible to sell goods online without packaging. Companies can ed use click-and-collect services in lieu of postage could result in less packaging waste.
Click-and-collect solutions can also help drive foot traffic back into stores, helping retailers develop relationships with their customers and alleviating stocking challenges created when unwanted or ill-fitting goods are refunded but still awaiting return postage.
Companies like TZ are even enabling smaller retailers to rollout contactless click-and-collect solutions using their smart locker banks.
Footwear company Nike implemented these lockers to give customers secure, 24/7 collection options without needing to mail out goods.
Call ius if we can help you install smart locker banks at your business location.Call i
