Sustainability

What sustainability means in retail

Sustainability in online retail does not mean conviction but viability. A business is sustainable when it holds up under stricter rules on supply chain, packaging and returns without losing its margin. That definition is plainer than the usual use, but it has the advantage of being verifiable.

Which duties exist

Three rule sets affect shops directly. The first is packaging. Anyone putting goods into circulation takes part in a take back and recovery scheme and has to be registered. The second is the supply chain. Larger companies must demonstrate due diligence for human rights and environment along the chain, and through the passing on of requirements this reaches smaller retailers. The third is product responsibility, meaning labelling, safety and take back for certain product groups.

Information duties come on top. Anyone advertising with environmental claims has to be able to substantiate them. Blanket statements such as climate neutral or eco friendly are attackable when the basis cannot be followed.

Which measures pay off

• Shrink the packaging: less material and less volume lower material cost and freight at the same time. It is the most effective single measure.
• Lower returns: every avoided return saves transport, handling and packaging. That is why precise dimensions and honest photos are a sustainability topic too.
• Lower stock: goods that are written down consumed resources without reaching a customer.
• Consolidate transport: fewer part shipments per order lower cost and effort.
• Repair and spare parts: offering spare parts extends service life and gains an additional sales channel.

How claims can be substantiated

Three rules keep claims solid. First, only measure what is measurable and state the boundary. A figure for packaging can be calculated, one for the whole supply chain usually cannot. Second, state figures with a reference. A saving in kilograms without a base year and base quantity says nothing. Third, make no claim that depends on another party. Anyone who does not control the conditions under which a supplier produces should not make a promise about it.

The third rule is the most important and is broken most often. It is legally relevant too, because unsubstantiated claims can be challenged.

Why it is a commercial topic

Sustainability is not an add on but an anticipation of rules that are coming. Anyone who knows their packaging, returns and supply chain today will not have to rebuild them under time pressure later. Customer benefit comes on top: a smaller package fits the letterbox and saves the customer a trip to the collection point. The effect is therefore measurably double.

Frequent questions

• What is the first step? Measure the packaging and check the two most common sizes.
• Is a climate project worth it? Avoidable cost first, offset payments second. In reverse it gets expensive.
• Do I need a label? No. Solid figures work more strongly than a badge.