The Impact of E-Commerce on the Environment

E-commerce has become an integral part of local and international trade, as more people and companies purchase goods and services online. According to Statista, global e-commerce sales reached 4.1 trillion USD in 2024, and experts predict that this number will continue to grow in the coming years.

E-commerce offers many benefits to consumers, but its environmental impact is becoming increasingly concerning. A UN report indicates that e-commerce can have both positive and negative effects on environmental sustainability.

Understanding how e-commerce affects the environment—its benefits and drawbacks—helps businesses and consumers alike make decisions to reduce their carbon footprint.

Positive Effects of E-Commerce on the Environment

1. Reducing the impact of physical retail

Traditional retail stores require significant resources for construction, energy use, and daily operations. Physical stores need electricity for lighting, heating, and cooling systems, which substantially increase carbon emissions.

Online retailers, however, do not need physical outlets, eliminating these energy demands and allowing for more efficient warehousing models. Many retailers also use “dark stores”—warehouses designed exclusively for online order fulfillment. These facilities are optimized for efficiency and consume far less energy than conventional retail stores.

2. Efficient inventory management and waste reduction

Many companies use advanced data analytics tools and artificial intelligence to forecast demand accurately. This allows them to produce goods based on actual consumer needs, reducing overproduction and waste.

For example, the fast fashion industry generates 92 million tons of textile waste annually, accounting for roughly 10% of global carbon emissions. E-commerce platforms that use “made-to-order” or “just-in-time” inventory systems produce only what customers order, helping to lower pollution levels.

3. Optimized logistics and consolidated delivery

Centralized warehousing reduces inefficiencies in traditional supply chains, where goods are often moved through several distribution centers before reaching stores. E-commerce companies use algorithmic route planning for consolidated deliveries, reducing the total distance traveled by each package.

According to the U.S. Environmental Protection Agency (EPA), 28% of total carbon emissions in the U.S. come from transportation, making it a major source of air pollution. Consolidated delivery networks in e-commerce reduce individual delivery routes and the related emissions. Instead of many customers driving to physical stores, a single delivery vehicle can serve hundreds of households in one trip.

Negative Effects of E-Commerce on the Environment

1. Increase in packaging waste

Products sold online require protective packaging during transport, generating large amounts of waste. In physical stores, minimal packaging is used, whereas online retailers use multiple layers of plastic, cardboard, and foam.

The UN’s 2024 Digital Economy Report shows that e-commerce generates 4.8 times more packaging waste than physical stores, contributing to greenhouse gas emissions. Cardboard boxes, in particular, play a significant role in carbon emissions and waste production. The problem worsens when additional packaging and low-quality, non-recyclable materials are used for product returns.

Many packaging materials, such as polyethylene foam and bubble wrap, are difficult to recycle, exacerbating landfill accumulation.

2. Increase in carbon emissions from transportation and delivery

Door-to-door delivery and customer pickup from distribution points significantly affect e-commerce’s ecological footprint. The last-mile delivery stage—connecting retailers, suppliers, and customers—is the most energy-intensive and carbon-heavy segment.

While e-commerce reduces the need for personal shopping trips, fast delivery services increase harmful emissions due to:

●      Growth in the number of delivery vehicles, most of which run on fossil fuels and have high carbon output.

●      Inefficient routing for same-day or next-day delivery, which limits package consolidation.

●      Rising demand for air freight, which emits more carbon than sea or land transport. A World Economic Forum study predicts that if e-commerce continues on its current path, pollution in major cities will rise by more than 30% by 2030, requiring an additional 6 million delivery vehicles worldwide.

3. Product returns and waste generation

Returning online purchases impacts the environment due to the need for additional packaging, labeling, restocking, repackaging, and shipping.

Research shows that online retail has higher return rates than physical stores. According to the National Retail Federation (NRF), 17.6% of online purchases are returned compared to 10.02% in-store. Each return requires extra transportation, packaging, and logistics, increasing carbon emissions.

Many returned items remain unsold and end up in landfills because:

●      Repackaging costs exceed the product’s value.

●      Health and safety concerns arise, especially for electronics and clothing. Retailers often choose to destroy returned goods rather than spend resources on reselling them.

4. Encouragement of overconsumption

E-commerce stimulates overall consumption through convenience, accessibility, lower prices, and wide selection. Online stores rely heavily on advertising, flash sales, and marketing tactics that drive impulse buying.

Frequent purchases across multiple platforms lead to overconsumption, which in turn increases transportation needs and emissions from the growing number of delivery vehicles.

The negative environmental effects include:

●      Excessive use of resources to meet artificially inflated demand.

●      Shortened product life cycles, leading to more waste.

●      Rising disposal rates due to the popularity of fast fashion and disposable electronics.

Solutions for Sustainable E-Commerce

Innovations in packaging

More companies are switching to biodegradable and recyclable packaging to reduce waste and align with eco-friendly business practices.

●      Minimal packaging – Reducing excess materials during packaging helps lower waste. For example, Mercado Libre eliminated additional packaging, delivering items in their original packaging with a single label to minimize material use.

●      Phasing out single-use plastics – Replacing single-use plastics with biodegradable alternatives like paper wrapping, compostable bioplastics, and reusable containers helps protect ecosystems. Governments worldwide are implementing regulations to phase out single-use plastic packaging in e-commerce.

Conscious consumer habits

Sustainable shopping behavior can reduce overconsumption and waste, supporting long-term environmental balance. Consumers can make responsible choices by prioritizing quality over quantity and avoiding unnecessary purchases.

Key sustainable habits include:

●      Mindful shopping – Researching products, checking reviews, and understanding sustainability claims help reduce returns, emissions, and waste.

●      Choosing slower delivery options – Slower delivery reduces pollution by allowing more efficient route planning and consolidated shipments.

●      Supporting sustainable businesses – Purchasing from companies that use eco-friendly packaging and clean transport contributes to positive industry change. Choosing durable, reusable, and sustainable products supports brands that aim to reduce environmental harm.

Consumers can also make eco-friendly digital choices. For example, frequent travelers in Europe can use eSIM Europe instead of physical SIM cards, reducing plastic waste and delivery-related emissions while maintaining connectivity abroad. Small changes like this promote a more sustainable digital lifestyle.

Greener delivery solutions

With the growth of e-commerce, companies are investing in eco-friendly delivery models to reduce their environmental impact. Examples include:

●      Electric delivery vehicles – These produce zero emissions, significantly reducing air pollution. Amazon already uses 20,000 electric trucks in the U.S. and plans to increase that number to 100,000 by 2030.

●      Bicycle couriers – In densely populated cities, bike couriers offer a practical alternative for fast delivery. Companies such as DHL and FedEx are expanding their use of electric cargo bikes, which can maneuver through traffic efficiently without polluting the environment.

●      Package lockers – Centralized collection points allow customers to pick up multiple parcels at once, reducing delivery routes, vehicle use, and emissions.

Conclusion

E-commerce has revolutionized consumer behavior worldwide, providing unprecedented convenience, accessibility, and global reach. While it offers environmental benefits such as reduced retail space and optimized logistics, it also contributes to growing packaging waste, emissions, and overconsumption.

Balancing customer demand with environmental responsibility is essential for developing a sustainable e-commerce industry that benefits both people and the planet.