E-commerce does not have a very green image: scenes of delivery vans driving up and down our streets, sometimes two couriers from the same supplier turning up at the same time, an endless stream of packages being returned free of charge,… Everyone struggles with the problem, but the solution is not self-evident.
Focus on ease of use
The debate on how the entire ecosystem of e-commerce should be (re)organised is in full swing, just look at the recent commotion about delivery companies that are sued, the responsible minister saying she wants to radically transform the parcel sector or a call for a total ban on free returns by an organisation representing SMEs. E-commerce giants such as Zalando, Amazon and bol.com are competing for market share, and therefore have their focus entirely on the ease of use of the end consumer, who wants to receive products they ordered online as quickly as possible and preferably without any additional charges. They also want to be able to return items such as clothing (free of charge).
This model puts the entire logistics chain under high pressure, and the sustainability of the model is often at the bottom of the priority list. An additional problem: small local online stores are forced to play along, even though they often do not have the scale to bear the accompanying costs. It could put them even further behind the big players.
Heavier packages to avoid surcharge
On top of that, well-intended initiatives to organise parcel deliveries more sustainably sometimes miss the mark completely. The most striking example popped up in various media earlier this week: a local toy store in Belgium explained how it deliberately weighed down its parcels with stones (though lovingly decorated) to avoid receiving a surcharge at the post office for parcels that are large but do not weigh much (like stuffed animals).
It is apparent that this is a shared responsibility between the end consumer and the e-commerce players. The latter, however, are hesitant to take action, which means the ball is in the governments’ court. Minister Petra De Sutter – accurately – analysed the issue in Belgian newspaper Het Laatste Nieuws: the problem lies primarily in the last mile, the distance that must be bridged between the distribution centre and the customer.
Level playing field, but on what level?
The only way forward is to create a level playing field: all players should get equal chances. The big question involves how to level that playing field. Danny Van Assche, managing director at SME organisation Unizo, is correct that a ban on free returns only makes sense on a European scale. Otherwise, Belgium puts itself entirely out of the picture in terms of e-commerce. However, the snail’s pace at which the notorious Digital Markets Act (which should regulate the large online platforms) is moving through the European institutions makes it sufficiently clear that this will not happen overnight.
Nor does it look like the industry will regulate itself quickly to make the e-commerce model sustainable. Nevertheless, it is not impossible: Wouter Torfs has already shown how his shoe chain managed to make the online channel as profitable as the brick-and-mortar stores by, for example, optimising the shopping experience in such a way that the number of returns is reduced to a minimum. However, it will be a long process: the customer has become accustomed to online shopping in its current form. Changing that expectation pattern will be a Herculean effort…
