Descartes Systems Group has released findings from its 2024 Home Delivery Sustainability Report: The Environmentally Conscious Consumer Under Pressure survey, which examined online consumer sentiment of retailers’ sustainability practices around their delivery operations.
The third annual study shows that 57% of respondents were quite/very interested in sustainable home delivery services, however, 89% felt their willingness to pay more for sustainable delivery was impacted by the current economic environment. Moreover, 34% indicated economic pressures had significantly/drastically impacted this motivation.
The promising news for the environment and retailers, however, is that 99% of consumers surveyed are doing/open to doing more to reduce their environmental footprint, with a significant number (38%) indicating they regularly/always make purchase decisions based on the environmental impact of the product or company. Offering and educating the market about sustainable last mile practices that save the consumer money represents an opportunity for retailers to stand out and build loyalty as eco-friendly businesses while operating more efficiently. In the study, the top delivery options cited by those interested in using more sustainable methods were combining orders into a single delivery and carbon neutral deliveries (see Figure 1):
Figure 1: Respondents quite/very interested in receiving deliveries using more environmentally friendly delivery methods, such as the following:
“Despite the financial pressures many consumers are facing today, interest in purchasing goods from companies with sustainable business practices, including eco-friendly home delivery options, remains strong,” said Ken Wood, EVP Product Management at Descartes.
“By capitalizing on this opportunity to educate consumers across all age groups about the cost-efficiency of many environmentally friendly delivery choices, retailers can better differentiate their services and build brand loyalty. Because the majority of environmentally-friendly options also drive delivery density and increase delivery efficiency, they also help to reduce transportation costs for retailers.”
Descartes and SAPIO Research surveyed 8,000 consumers across nine European countries, Canada and the United States to provide retailers and logistics organizations with critical insights into the importance of the environment in consumer purchase and delivery decisions and how perspectives vary by age and geography.
The goal was to gain a comprehensive understanding of the intersection of sustainability, last mile delivery, and consumer buying behavior across demographics, including assessing consumer motivation to reduce their carbon footprint through eco-friendly home delivery options and the impact of inflation and other economic factors on consumers’ delivery preferences and behaviours.