Consumers ready to pay more for products delivered in eco-friendly manner

sustainable delivery

E-commerce companies should focus on environmental-friendly delivery of goods as customers are willing to pay more for products that are delivered with carbon reduction in mind.

More than half of consumers are willing to pay at least 5 percent higher prices for products ordered online if they’re delivered sustainably, and 76 percent would wait at least one extra day for climate-friendly transport, the study said.

The study, which was carried out on more than 600 U.S. consumers, reveals that 12 percent of US consumers would pay up to 10 percent more for sustainable delivery.

sustainable delivery

Annual income was not an influential factor in consumers’ willingness to pay more for sustainable delivery. In fact, respondents who earn over $100,000 a year were slightly less likely to accept higher prices for climate-friendly transport.

Similarly, age had only a minor impact on attitudes toward sustainability, with 18-25 year olds slightly less likely to pay more for climate-friendly transport compared to 26-35 year olds.

However, the study does show that, if knowledgeable about these options are available to them, many consumers would make at least minor concessions for more sustainable delivery.

Yves Leclerc, managing director and leader of West Monroe Partners’ supply chain practice, said, “Consumers are willing to sacrifice for products delivered in ways that don’t yield damaging greenhouse gas emissions – they just need to be aware of these alternative delivery models first.”

A similar survey conducted by management and technology consultancy BearingPoint in Europe revealed that consumers there are more aware of green delivery options.

Of the 1,000 European respondents BearingPoint surveyed, nearly half were aware of climate-friendly shipping alternatives and one in five has already used them. Almost 60 percent were willing to pay more for green shipping and 76 percent were willing to wait up to three days longer for sustainable delivery.

“The modern consumer is paying more than lip service to environmentally-conscious decisions these days, and plenty are willing to put their money – and patience – where their mouths are,” said Leclerc.

According to Leclerc, e-commerce shops and logistics providers offering options such as flexible delivery windows and transportation modes will miss out on a major opportunity unless they put more effort into educating their customers.

Also, companies that don’t implement sustainable delivery practices now expose themselves to shareholder and customer risk as legislation may continue to put limits on a company’s carbon emissions, Leclerc added.

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