Online sales

ENVIRONMENTAL IMPACT OF E-COMMERCE.

ONLINE SALES,

CARBON NEUTRALITY

AND ARTIFICIAL INTELLIGENCE.

The digital sector generates 3.8% of global Greenhouse Gas, GHG emissions. And it consumes 10% of global electricity. In 2021, the sector will produce 57 million tons of waste. AI, Artificial Intelligence, is today the essential resource that allows e-commerce to understand and respond concretely to the expectations and demands of Internet users. Just as obvious as the environmental impact of digital technology, e-commerce also impacts nature.

Environmental impact of e-commerce, the customer is the cornerstone of the online sales model.

Today, the needs and desires of consumers are the alpha and omega of the approach of online merchants.

The Internet user claims a responsible economy.

A growing number of consumers are now aware of the environmental emergency. 70% of e-buyers declare that they prefer merchant sites that implement environmentally friendly initiatives.

As a result, online business models must increasingly meet the requirements of responsible and socially responsible economies.

Environmental impact of e-commerce, the production of goods and their delivery are put on the index.

Because the various modes of production and distribution are at the heart of the concerns. And so, from the modes of production to home delivery, to collection in a store or in a relay point, goods and products, electronics, clothes, toys… accumulate GHG emissions, Greenhouse Gases, kilometers and distances. Thus, they are in fact moving away from carbon neutrality.

Alternative solutions to survive.

The health crisis of 2020–2021, with its restrictions and confinements, is pushing physical stores to develop their sales model. In order to survive, they offer their customers omnichannel shopping solutions. So customers can keep their consumption habits and access their stores through multiple channels. Already, between 2019 and 2020, the sector’s turnover will rise from 46 to 63 billion euros, an increase of 37%. E-commerce now accounts for almost 13% of retail trade. In fact, the number of active merchant sites is growing by 12%. And in 2021, there will be 177,000 active merchant sites. However, the sites with the largest number of customers in 2020 are: Amazon, Fnac, Cdiscount, E.Leclerc and Veepee.

Environmental impact of e-commerce, online sales is a hyper competitive sector.

The web giants dominate the e-commerce. To stand out and survive in this jungle of online sales, you have to innovate. By definition, an e-merchant must do everything possible to sell. First of all, he needs a website that the search engine bots can clearly crawl. Then, the Internet user arrives on the site and finds what he is looking for. And finally, the goal is obviously to encourage the act of buying. So Artificial Intelligence methods are needed for so little.

How to implement AI without impacting the environment ?

The Institute for Responsible Digital Technology is launching a working group on responsible AI in January 2021. In particular, this approach seeks to find solutions for a more environmentally friendly use of Artificial Intelligence. And thus provoke the immersion of an ethical AI.

Already, there are good practices of eco-design of applications integrating AI bricks. Namely, it is necessary to promote the implementation of existing technologies of open source AI models. This avoids spending energy on existing algorithmic training programs.

Environmental impact of e-commerce, online sales and the burden of carbon neutrality.

While three out of five consumers, 60%, consider environmental impact as an important element when choosing a delivery option, only 8% spontaneously choose a green delivery method when offered the choice. Moreover, only 37% of French consumers are willing to pay extra for a carbon–neutral delivery.

GAFAM’s invest in Renewable Energies.

All in all, the digital behemoths do not intend to reduce their energy consumption. So the GAFAM’s are investing in Renewable Energies. For example, Facebook uses only green energy for its R&D work. Microsoft is committed to capturing in the atmosphere by 2030 the equivalent of 100% of its CO₂ emissions since its creation.

Environmental impact of e-commerce, a virtuous online sale.

Principles of responsible digital exist and can help e-commerce to maintain and sustain a sustainable eco-responsible approach.

• Hosting sites in a green center,
• Store internal data in eco-datacenters,
• eco-design of the site, etc…

Because the carbon footprint of an online store is also a function of the weight of the page, the number of requests, etc. Finally, taking into account non–reducible emissions is also possible.

And in this posture, the e-merchant can take acts of carbon compensation by participating in the financing of projects of reduction, capture and or sequestration of GHG.

Optimize flows.

According to a study by France Stratégie, the General Council for the Environment and Sustainable Development and the General Inspectorate of Finance, the frequency of online purchases is constantly increasing, and the optimization of customer service generates even more greenhouse gas emissions and fine particles. In particular, we are talking about distribution in less than 24 hours, the division of the order into several trips, free return…

The main issue is the flow of goods and transportation. The only way to reduce the impact of deliveries is to optimize routes by pooling them. We really need to encourage retailers to stop dividing orders as is too often the case today. Confirms Frédéric Bordage, founder of the GreenIT.fr expert group.

Environmental impact of e-commerce, the potential of AI.

AI can be used as a lever to decarbonize the value chain of an e-commerce. Indeed, different applications can help to,

• calculate the shortest delivery routes,
• optimize package sizes to avoid sending empty packages, etc.
• help in decision making
• locate the most environmentally friendly suppliers and other business partners,
• audit e-commerce to indicate carbon reduction actions to be taken…
• Analyze the causes of return shipments, and determine solutions to avoid them.
• predict sales more precisely and therefore manage its stock in just-in-time,
• Rationalize supplier orders as well as product manufacturing, a source of carbon emissions and energy costs, etc.

Government efforts.

In February 2021, the French government intervenes in a report and proposes measures to mitigate the environmental impact of e-commerce.

Establish a sustainable e-commerce label, to allow customers to clearly identify the most responsible market players.

Promote the omnichannel nature of French companies such as Very Small Businesses, VSEs and Small and Medium Enterprises, SMEs. The objective is to revitalize local trade and thus encourage short circuits, etc.

Environmental impact of e-commerce, the mobilization of the giants of French digital commerce.

In July 2021, 15 French e-commerce giants signed a charter of commitment to the government to move towards greater respect for the environment. Thus, Cdiscount, La Redoute, Rakuten, Veepee, Ebay, Fnac-Darty, Maison du Monde, Otelo, Rosa, Sarenza, Lentillesmoinscheres.com, SOS Accessoire, Showroomprive.com and the Federation of e-commerce and distance selling, FEVAD, commit to reducing their carbon footprint with concrete efforts on

• the volume of packaging for at least 75% of products or packages by December 31, 2024,
• the transition to low-emission delivery vehicles,

Online sales are going green.

The urgency is almost tangible. E-commerce and the digital sector must start once and for all, the turn of a responsible and citizen economy. The Internet customer is more and more demanding.

Our consumption behaviors are changing. We pay more attention to the origin of products, their constitution, their manufacturing, their environmental impact, etc. Indeed, the consumer now wants environmentally friendly e-commerce, for a more ecological, ethical and fair online sales…