Fostering Environmentally Sustainable Electronic Commerce

Electronic commerce (e-commerce) is reshaping the global economy, transforming consumption patterns while driving economic growth. The value of the sector rivals that of global trade in goods and services, and keeps expanding. E-commerce platforms help millions of businesses, many of which are small and medium-sized enterprises, sell online, overcoming barriers such as physical market access, infrastructure gaps and social constraints. However, the benefits of e-commerce remain uneven, with most developing countries lagging in the adoption of online shopping. It is also critical to ensure that this global transformation does not compromise environmental sustainability. The environmental impact of e-commerce depends on the type; business-to-consumer e-commerce implies a growing number of smaller packages, deliveries and returns, while business-to-business e-commerce may be more efficient, with bulk orders requiring less packaging and allowing for streamlined delivery. The different stages of the business-to-consumer e-commerce logistics chain for goods (warehousing, packaging, transport, returns) are examined in this policy brief, along with changing consumer behaviour. In addition, the need to rethink these elements is highlighted, to reduce the environmental footprint of e-commerce, while creating a regulatory framework that balances environmental sustainability with economic growth.