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Sustainable
E-Commerce

For some, it is an obligation. For others, it is a voluntary activity. But sustainability also plays a role in e-commerce.

Challenges

E-commerce undoubtedly has many advantages, such as the elimination of physical stores and wide reach. However, the downside is an increase in emissions and waste, caused by the growing complexity of supply chains, packaging materials, and the high rate of returns. To promote sustainability in e-commerce, all areas of commerce – from logistics to the underlying technologies – must be optimized.

A central approach to reducing the environmental impact of e-commerce is the introduction of sustainable technologies. This applies to both the physical infrastructure and the software solutions that drive commerce. Sustainable e-commerce technology should therefore not only be efficient but also conserve resources.

Technical
options

Cloud-based solutions

Cloud technologies are a crucial component in making e-commerce infrastructures more efficient. By using cloud services instead of local servers, energy consumption can be significantly reduced. Large cloud providers such as Amazon Web Services (AWS) and Microsoft Azure are investing heavily in renewable energies and providing an environmentally friendly basis for e-commerce platforms.

 

Efficient server operation and data management

Another technological challenge is the high energy demand of servers that keep the online store running. Energy-efficient data centers and the use of artificial intelligence (AI) can help to optimize data management. AI-based systems analyze traffic in real-time and ensure that only the required computing power is used to save energy.

 

Optimization of supply chains through technology

Technologies such as the Internet of Things (IoT) and blockchain have the potential to make supply chains more transparent and efficient. With IoT sensors, companies can monitor the condition and location of goods in real-time, reducing the number of transport routes and unnecessary returns. Blockchain can help to track supply chain processes and guarantee the origin of products, which in turn supports sustainability.

 

Returns management and AI-supported decision-making

The high number of returns in e-commerce has a significant impact on the environment. Nevertheless, the option of returns must be offered, otherwise you will lose customers.

The solution is to optimize the purchasing process by describing and presenting goods in the online shop as well as possible. With proper data analysis and the use of corresponding AI tools, customers can also be recommended suitable products – which significantly reduces the rate of returns and thus the consumption of resources.

Sustainable development as a
long-term
strategy

E-commerce technology must be designed to be compatible with the principles of the circular economy. This involves keeping products and materials in circulation for as long as possible, through reuse, recycling, and sustainable production. One example of this is the development of modular platforms that can be flexibly adapted to new business models and markets without the need to build new technologies.

It is also important that companies rely on open standards when developing and operating their e-commerce platforms. These enable the easy integration of new, sustainable technologies and ensure that systems remain future-proof and do not consume unnecessary amounts of energy and resources.

Discover compelling insights into e-commerce architecture.

ESG in
E-Commerce

Download ESG e-book

When you think about sustainability in e-commerce, the topics that often come to mind first are supply chains (environment), working conditions in distribution centers, and production facilities in third countries (social). But that is only part of the picture.

In our e-book “ESG – It is Our Responsibility”, we not only highlight technical approaches to sustainable e-commerce, but also provide practical tips for areas such as transportation, packaging and more.

In addition, we provide recommendations for managing ESG data and sustainable software development.

Download

WE CREATE ADDED VALUE FOR OUR  CUSTOMERS.

This leads to a long-term cooperation with our customers, which we appreciate very much. You can find even more e-books, case studies, and co. in our Insights.

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