Top 10 Sustainable Packaging Solutions for Online Retailers
1 October 2025
Top e-commerce inventory management mistakes to avoid
2 October 2025
OUR GOAL
To provide an A-to-Z e-commerce logistics solution that would complete Amazon fulfillment network in the European Union.
Introduction
E-commerce has grown dramatically in recent years, and while it offers many conveniences, it also carries a significant environmental cost. From transport emissions, warehouse energy use, to packaging waste—every step in the fulfilment chain contributes to greenhouse gases. According to a study by MIT and Prologis, transport from fulfilment centres to consumers in urban areas can contribute substantially to emissions, but optimised fulfilment networks and urban fulfilment hubs can cut emissions per package by ~10‑50%.
As we move deeper into 2025, pressure from consumers, regulators, and investors is mounting. Many national and regional policies now demand that retailers show improvements in their carbon emissions, and sustainable business practices are becoming a competitive differentiator. For online retailers, reducing carbon footprint isn’t just about compliance—it’s about cost savings, brand loyalty, operational efficiency, and future‑proofing.
This article walks through ten proven and emerging strategies that online retailers can adopt to reduce their e-commerce fulfilment carbon footprint. Each strategy is illustrated with evidence or case examples, benefits and potential trade‑offs, to help you decide what might work best for your business.
1. Optimise Transportation Mode & Last Mile Delivery
One of the largest sources of fulfilment emissions is transport, especially last‑mile delivery. Traditional diesel delivery vans and air freight have high carbon outputs. Switching to lower‑carbon modes—electric vehicles (EVs), cargo bikes, or hybrids—can substantially reduce emissions. For instance, a Time article highlights how electric bikes in urban delivery reduce emissions by up to 90% compared to diesel vans, and remain significantly lower than even electric vans for certain routes.
Another study (“Two‑echelon Electric Vehicle Routing Problem”) examines multi‑stage delivery systems where large vehicles distribute goods to satellite hubs, from which EVs perform last‑mile delivery. These systems, when appropriately designed, can reduce emissions by significant percentages while maintaining service reliability.
Implementation tips:
- Invest in or partner with carriers that have EV or hybrid fleets.
- Use micro‑fulfilment centres or “dark stores” inside urban or suburban zones to reduce delivery distances.
- Apply route optimisation software to reduce empty runs and avoid inefficient loops.
- When fast delivery is demanded (same day or express), set criteria so only feasible routes or vehicles are used.
Trade‑offs and challenges:
- EVs have higher upfront cost, need charging infrastructure, battery management.
- Cargo bikes or bikes may have limited capacity or constraints in bad weather.
- Regulatory regimes and incentives vary by country, which may affect cost and availability of green transportation.
2. Location of Warehouses & Fulfilment Centres
Where you store and fulfil orders matters. Urban fulfilment centres (closer to end customers) or dispersed micro‑fulfilment hubs can reduce distance travelled per order, thus lowering transport emissions significantly. Prologis research found that locating fulfilment centres closer to consumers (rather than far‑off industrial areas) can yield an approximate 50% reduction in transport‑related greenhouse gas emissions for direct‑to‑home deliveries.
Moreover, facilities located closer to dense demand reduce the need for long haul trucking, air freight, and excess packaging (less handling, fewer transit stages). Inventory positioning strategies (storing hot items near demand centres) help avoid emergency shipments and express air deliveries.
Implementation tips:
- Use demand forecasting to identify regions of high order density and position inventory accordingly.
- Consider renting or building fulfilment centres in or near urban areas.
- Use multi‑client / shared warehouses to reduce cost and increase efficiency.
Monitor local emissions regulations (zero‑emission zones, low‑emission urban policies) and ensure your facilities and deliveries comply.
3. Sustainable Packaging: Materials & Right Sizing
Packaging is a big contributor to carbon emissions—not just from materials, but from increased transport weight and volume. Sustainable packaging can reduce both material emissions and transport emissions.
Some practices:
- Use recyclable, compostable or bio‑based packaging materials instead of petroleum‑derived plastics. DHL’s guidance includes replacing bubble wrap with compostable or reusable alternatives, and ensuring packaging is right‑sized.
- Amazon recently eliminated plastic air pillows in favour of recycled paper filler in North America—95% transition in many cases—removing billions of single‑use plastic components. The change reduces plastic waste and associated carbon emissions from production and disposal.
- LivingPackets’ “THE BOX” is a reusable, trackable shipping box, claimed to be reusable up to 1,000 times, designed to reduce almost all packaging waste (no excess filler) and improve sustainability, customer experience, and reverse logistics.
Implementation tips:
- Map your current packaging footprint: what materials, weights, void fill, percentage of non‑recyclable materials.
- Switch to right‑sized boxes/envelopes; avoid oversized packaging and test damage rates.
- Use fillers / void material that are compostable or recyclable.
- Evaluate reusable packaging systems for frequent customers or high return volume SKUs.
Trade‑offs:
- Compostable materials may cost more or have supply constraints.
- Reusable packaging requires logistics to collect, clean, reuse—adds complexity.
- Protection vs sustainability balance: fragile goods may need more protective (but heavier / more material) packaging.
4. Reduce Returns & Reverse Logistics Emissions
Returns are costly not only in money, but in carbon footprint. Each return requires transport, handling, possible disposal or refurbishment. DHL and other logistics providers point out that free returns encourage purchase of multiple variants, which increases return volumes.
Improved description of products (size charts, images, accurate specs), better quality control, virtual fitting tools for clothing, and more restrictive return policies (or paid returns) can help reduce return rates. Bleckmann reports brands reducing returns and waste by optimizing fulfilment operations such as stock positioning and fulfilment centre design.
Implementation tips:
- Collect and analyze return reasons to find patterns.
- Use technology (e.g. AR try‑on, virtual sizing) to reduce misorders.
- Incentivise customers to consolidate orders or reduce unnecessary returns.
Offer local drop‑off or in‑store return options to cut transport distances.
5. Energy Efficiency in Warehouses & Fulfilment Centres
Warehouses (storage, lighting, cooling/heating) use large amounts of energy. Improving energy efficiency is critical for reducing Scope 2 (indirect energy) emissions.
Some strategies:
- Use LED lighting, motion sensors, daylight harvesting.
- Smart heating, ventilation and air‑conditioning (HVAC) systems; heat recovery; insulation.
- On‑site renewable energy: solar panels, wind, geothermal depending on locale. DeckCommerce suggests that many fulfilment centres significantly reduce energy use by upgrading facility systems and improving layout to reduce unnecessary movement or over‑storage.
- Use energy‑efficient material handling equipment: conveyors, robotic picking, automated storage that reduce human movement and transport within the warehouse.
Benefits and challenges:
- Upfront investment cost is high, but energy savings often recover investment over several years.
- Maintenance and operational discipline are required to ensure systems run efficiently.
- Some locations may have higher energy costs or infrastructure constraints.
6. Use Alternative Fuels & Clean Energy
Besides electrifying delivery fleets, using clean energy for transport and operations further reduces carbon footprint.
Examples:
- Sustainable Aviation Fuel (SAF) for air freight where unavoidable. DHL Express’s “GoGreen Plus” is mentioned as using SAF for some shipments in their Asia‑Pacific network.
- Hybrid or biofuel fleets, especially for rural or long‑haul segments.
- Operations powered by renewable electricity: using green grids or sourcing Renewable Energy Certificates (RECs).
Implementation tips:
- When selecting carriers, request emissions data and fuel type for their fleets.
- Invest or partner in logistics providers who are already transitioning their vehicle fleets to EV or hybrid models.
Use renewable energy sources in warehouse / fulfilment buildings.
7. Order Consolidation & Smart Shipping Scheduling
Sending several items together or consolidating orders reduces packaging use and transport trips. Smaller, frequent shipments tend to raise emissions per unit shipped.
Evidence:
- Prologis research: consolidating deliveries on “circular routes” (where multiple drop‑offs are grouped) reduces transport‑related emissions drastically and reduces overall footprint per package substantially.
- CarbonBright and others suggest encouraging customers to choose slower or grouped deliveries, or batch orders, to reduce number of trips.
Implementation tips:
- Offer delivery options where customers can choose slower or grouped deliveries.
- Consolidate shipments at fulfilment centre: combine orders going to same postal region.
- Use software to optimize shipping schedules so vehicles travel efficient routes with fuller loads.
8. Transparent Supply Chain & Emissions Tracking
You can’t reduce what you don’t measure. Tracking emissions across the fulfilment chain—transport, packaging, energy use—allows businesses to pinpoint high‑impact areas.
Sources:
- DHL suggests dividing emissions into Scope 1 (direct), Scope 2 (energy), Scope 3 (supply chain, transport) and using GHG Protocol tools.
- Academic papers like “SEER: Sustainable E‑commerce with Environmental‑impact Rating” show that when consumers see environmental impact ratings, they make more sustainable choices, which also pushes retailers to reduce footprint.
Implementation tips:
- Use tracking tools, carbon calculators, and report CO₂ emissions publicly.
- Set emission‑reduction targets (e.g., net zero, or % reductions by 202X).
- Require emissions data from suppliers and carriers (Scope 3).
Integrate environmental impact into product pages or customer dashboards where appropriate.
9. Encourage Consumer Choices That Reduce Emissions
Retailers can influence consumer behavior to reduce footprint: slower shipping, grouped orders, fewer returns, sustainable packaging preferences etc.
Examples:
- DHL’s best practices include giving customers option to choose slower deliveries, carbon neutral shipping, or packaging options.
- Bleckmann emphasizes that “free shipping” and “free returns” policies, while popular, often increase emissions because they encourage over‑ordering and returns; shifting to paid or more transparent delivery options helps.
Implementation tips:
- Communicate environmental cost differences between faster vs slower delivery.
- Offer incentives for grouped orders or for choosing eco‑friendly packaging/transport options.
- Educate customers about return costs (environmental and operational) to reduce frivolous returns.
10. Carbon Offsetting & Renewable Energy Initiatives
Some emissions cannot yet be eliminated—especially in transportation or materials. Carbon offsetting can be part of a holistic strategy, while investing in renewables helps reduce indirect emissions.
Examples:
- DHL includes carbon offset options and works with renewable energy sources for some operations.
- Etsy earlier offset all shipping emissions in US as part of its broader sustainability strategy.
Implementation tips:
- Choose offset projects certified by recognized standards (VCS, Gold Standard, etc.).
- Ensure transparency to customers: explain what is being offset and how.
- Combine offsets with genuine emission reductions – offsetting should not be a substitute for operational improvements.
Conclusion
Reducing carbon footprint in e-commerce fulfilment is a multi‑layered challenge that spans transportation, packaging, warehouse energy, consumer behavior, and supply chain transparency. The ten strategies described above are not mutually exclusive—in fact, the biggest payoff often comes from combining several.
Some steps (like packaging changes or order consolidation) can be implemented relatively quickly. Others (such as electric fleet investment or urban fulfilment centre relocation) require long‑term planning and capable partners. But taken together, they enable retailers to not only comply with environmental expectations but also to cut costs, build brand value, and create a more resilient business.
If you are an online retailer, start by auditing your current emissions, pick two or three strategies that align with your capabilities and priorities, measure results, iterate, and scale. Over time, the return on investment will grow—not just financially, but in sustainability, reputation, and customer loyalty. By 2025 and beyond, carbon‑smart fulfilment will be a clear competitive advantage.
